Ixigo Parent Le Travenues Reports 37% Revenue Growth in Q2 FY24; Stock Falls 20%

Le Travenues Technologies, the parent company of travel aggregator Ixigo, announced its September quarter results, reporting strong revenue growth but a sharp decline in profitability. The market reacted negatively, with shares falling significantly after the announcement.

Financial Highlights

The company reported mixed performance for Q2 FY24:

• Revenue: ₹282.70 crore, up 37% YoY from ₹206.35 crore
• EBITDA: -₹3.60 crore versus ₹17.87 crore in Q2 FY23
• Net Profit: -₹3.46 crore compared to ₹13.08 crore last year

Despite robust top-line growth, the company swung to losses at both EBITDA and net profit levels, reflecting margin pressures.

Operational Metrics

Le Travenues reported positive trends in operational performance:

• Gross Transaction Value (GTV): ₹4,347.50 crore, up 23% YoY
• Flight GTV: Increased 29%
• Bus GTV: Surged 51%
• Train GTV: Grew 12%

The company also achieved improved contribution margins and reported positive operating cash flow of ₹91.50 crore, indicating operational efficiencies despite bottom-line challenges.

Market Reaction and Stock Performance

Shares of Le Travenues fell sharply by 20% after the results announcement. As of 10:42 am on October 30, the stock was trading at ₹268.50, down 17.32%. Despite the decline, year-to-date performance remains positive, with the stock up 50%.

Strategic Investment by Prosus

In a major development, Prosus, a global consumer internet group, invested ₹1,295 crore for a 10% stake in Le Travenues Technologies at ₹280 per share. Prosus plans to increase its holding to 16%, signalling long-term confidence in the company’s growth prospects.

Read More: MakeMyTrip Launches Partnership with Over 25 Airlines.

Conclusion

Le Travenues delivered strong revenue growth in Q2 FY24 but faced profitability challenges, leading to a sharp market correction. Operational gains and strategic investment from Prosus provide a positive outlook, though near-term performance will depend on margin recovery.

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