TBO Tek (TBOTEK) Q2 24/25 earnings summary

Executive summary

• Q2 FY25 showed strong year-on-year growth in monthly transacting buyers (+6%), GTV (+24%), revenue (+28%), and gross profit (+35%), led by the hotels segment now accounting for 59% of GTV, 79% of revenue, and 84% of gross profit.

• Both India and international operations contributed to hotel segment growth, with gross profit up 26% in India and 49% internationally year-over-year.

• Active agents and bookers increased, supported by enterprise initiatives like H-Next and AI adoption for efficiency and user experience.

• Board expanded to 9 members, with two new directors appointed, enhancing governance.

• Unaudited consolidated and standalone financial results for the quarter and half year ended September 30, 2024, were approved and released, with statutory auditors issuing an unmodified review conclusion.

Financial highlights

• Q2 FY25 consolidated revenue from operations was INR 4,506.92 Mn (INR 450.7 Cr), up 27.9% YoY; gross profit up 35% YoY to INR 306 Cr; adjusted EBITDA up 24.5% YoY to INR 89.6 Cr.

• Q2 GTV increased 24% YoY to INR 7,937 Cr; monthly transacting buyers up 6% YoY to 28,402.

• Q2 net profit was INR 60.1 Cr (INR 600.88 Mn), up from INR 56.1 Cr YoY; basic EPS (consolidated) for Q2 FY25 was INR 5.71.

• H1 FY25 revenue was INR 869.2 Cr (+24.7% YoY), adjusted EBITDA INR 174.7 Cr (+23.9% YoY), and PAT INR 121 Cr (+17% YoY).

• Cash and cash equivalents as of September 30, 2024, stood at INR 10,719.69 Mn (INR 1,072 Cr or INR 1,372.8 Cr, depending on reporting), with net worth at INR 1,075.9 Cr.

Outlook and guidance

• Management expects to maintain growth momentum in international markets, with Q3 typically being seasonally weaker.

• AI and technology initiatives are prioritized for operational efficiency and customer experience improvements.

• Take rates are expected to remain stable, with no active push for expansion.

• IPO proceeds are being utilized for technology, platform growth, and general corporate purposes, with INR 3,444.86 Mn unutilized as of September 30, 2024.

• No specific quantitative guidance provided, but focus remains on sustaining current growth rates.