Ixigo, the online travel aggregator (OTA) based in Gurugram, has announced strong revenue growth in its financial results for Q3 FY25. Despite a decline in net profits, the company posted a substantial year-on-year growth in its top line, driven primarily by its train ticketing and flight booking services.
In the third quarter, Ixigo’s revenue from operations surged by 41.5%, reaching Rs 242 crore, compared to Rs 171 crore in Q3 FY24. The growth was propelled by the continued demand for travel services, with train ticketing contributing the largest share of the revenue.
Revenue Breakdown: Train Ticketing Leads the Way
Ixigo’s success this quarter can be attributed to a significant increase in train ticketing revenue. Train services contributed nearly 50% of the company’s total revenue, with a notable rise from Rs 95 crore in Q3 FY24 to Rs 120 crore in Q3 FY25. This highlights the continued dominance of trains as a popular mode of transport in India.
The company’s flight and bus booking services also performed well, with these sectors contributing 28% and 21.4% to the total operating revenue, respectively. These segments are vital to Ixigo’s multi-modal transport offerings, attracting both business and leisure travelers.
- Train Ticketing Revenue: Rs 120 crore (49.6% of total revenue)
- Flight Booking Revenue: Rs 67.8 crore (28% of total revenue)
- Bus Ticketing Revenue: Rs 51.8 crore (21.4% of total revenue)
Beyond operating revenue, Ixigo earned an additional Rs 5.2 crore from interest and gains on financial assets, taking the total topline to Rs 247 crore for Q3 FY25.
Gross Transaction Value and Profitability
Ixigo’s Gross Transaction Value (GTV), which reflects the total value of transactions processed through the platform, saw a robust increase of 48% YoY, hitting Rs 4,036 crore during Q3 FY25. This surge in GTV suggests a growing user base and an uptick in transaction volumes across the platform’s services.
However, despite the strong revenue growth, Ixigo’s net profit fell sharply by 49.3%, dropping from Rs 30.6 crore in Q3 FY24 to Rs 15.5 crore in the current quarter. The decline is largely attributed to the absence of a significant deferred tax income of Rs 16.7 crore, which had been recorded in the previous fiscal year’s Q3.
In contrast, Ixigo’s profit before tax (PBT) saw a sharp 54% QoQ increase, rising from Rs 13.9 crore in Q3 FY24 to Rs 21.4 crore in Q3 FY25. This improvement indicates that the company is effectively managing its operations and seeing better margins on its core business activities.
Expense Growth and Profit Margins
The company’s total expenses increased by 42.7% YoY, rising to Rs 224 crore in Q3 FY25 from Rs 157 crore in Q3 FY24. The sharp rise in costs can be attributed to a 17% increase in employee benefit expenses, which amounted to Rs 41 crore for the quarter. This reflects Ixigo’s ongoing investments in talent and infrastructure as it continues to scale its operations.
While the increase in expenses has put pressure on net profits, the company managed to achieve a solid growth in its PBT, reflecting the effectiveness of its cost management strategies.
Stock Performance and Market Outlook
Ixigo’s stock closed at Rs 127.7 on the day of the announcement, with a market capitalization of Rs 4,886 crore, or approximately $581 million. Interestingly, the company reached its 54-week low price on the same day, which might suggest market reactions to the decline in net profits. Nonetheless, the rise in revenue and significant PBT growth point to Ixigo’s long-term potential in the Indian OTA space.
The company is well-positioned to continue capitalizing on the travel boom in India, particularly as travel bookings surge in the wake of growing consumer confidence and the recovery of the tourism sector post-pandemic.
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