Ixigo Parent Le Travenues Technologies Reports Q2 Loss, Shares Tumble 20%

Le Travenues Technologies Ltd., operating the travel aggregator Ixigo, saw its shares drop by approximately 20% after announcing its financial results for the September quarter. The company reported a net loss of ₹3.46 crore for the quarter, a reversal from a profit of ₹13.08 crore in the same period last year. Similarly, its Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) turned into a loss of ₹3.6 crore, compared to a profit of ₹17.87 crore year-on-year.

Despite the profitability dip, revenue showed robust growth, increasing by 37% to ₹282.7 crore from ₹206.4 crore in the prior year. The company highlighted that its EBITDA, adjusted for employee stock option (ESOP) expenses, rose by 36% year-on-year to ₹28.5 crore. Operational performance was strong, with Gross Transaction Value (GTV) growing 23% to ₹4,347.5 crore, driven by significant increases in flight (29%), bus (51%), and train (12%) GTV. Contribution margin improved by 20%, and operating cash flow increased by 30% to ₹91.5 crore.

Looking ahead, Ixigo expects a stronger second half of the financial year, supported by increased travel demand during peak seasons. The company also recently secured a significant investment of ₹1,295 crore from Prosus, which acquired a 10% stake at ₹280 per share and plans to increase its holding.

Impact: This news will likely impact investor sentiment towards Ixigo and potentially other travel tech stocks. The shift to loss, despite revenue growth, raises concerns about cost management and profitability sustainability. However, strong operational metrics and future outlook offer some positive signals. Rating: 7/10.

**Definitions:** * **EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization)**: A measure of a company's operating performance before accounting for non-operating expenses and non-cash charges. * **Net Loss**: The total expenses of a company exceed its total revenues over a specific period. * **Gross Transaction Value (GTV)**: The total monetary value of all transactions processed through the platform over a given period. * **ESOP (Employee Stock Option)**: A benefit offered to employees, giving them the right to buy company shares at a predetermined price. * **Contribution Margin**: The revenue remaining after deducting variable costs. It contributes to covering fixed costs and generating profit. * **Operating Cash Flow**: The cash generated from a company's normal business operations.