TBO Tek Q2 Profit Rises 7% YoY To INR 60.1 Cr

SUMMARY

• TBO Tek’s operating revenue surged 28% YoY to INR 450.7 Cr in Q2 FY25
• The B2B travel portal’s net profit declined 1.3% on a quarter-on-quarter (QoQ) basis from INR 60.9 Cr
• While revenue from air ticketing business was almost flat at INR 83.9 Cr, that from the hotels and packages segment rose 36.2% YoY to INR 357.1 Cr

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B2B travel portal TBO Tek, or Travel Boutique Online, reported a 7% increase in its consolidated net profit to INR 60.1 Cr in the September quarter of the financial year 2024-25 (Q2 FY25) from INR 56.1 Cr in the same quarter last year. 

However, profit declined 1.3% on a quarter-on-quarter (QoQ) basis from INR 60.9 Cr. 

The company’s operating revenue surged 28% to INR 450.7 Cr during the quarter under review from INR 352.3 Cr in the year-ago period. Sequentially, it rose 7.7% from INR 418.5 Cr. 

Including other income of INR 7.02 Cr, total revenue jumped almost 30% to INR 457.7 Cr in the quarter ended September 30, 2024. 

Founded in 2006, TBO Tek provides travel solutions to travel agents and tour operators. It offers white-label solutions, hotel and flight booking APIs and dynamic packages, among others. 

Break Up Of TBO Tek’s Q2 Revenue

The company’s revenue from its air ticketing business remained largely flat on a year-on-year (YoY) basis at INR 83.9 Cr during the quarter under review. Sequentially, revenue from this vertical declined 7.1% from INR 90.4 Cr.

The hotels and packages segment reported a strong 36.2% YoY growth in revenue to INR 357.1 Cr from INR 262.1 Cr in the year-ago period. On a QoQ basis, it rose 11.4% from INR 320.6 Cr.

EBITDA zoomed almost 19% to INR 82.9 Cr from INR 69.7 Cr in Q2 FY25, while EBITDA margin contracted to 18.4% from 19.8% in the year-ago quarter.

In December last year, TBO Tek acquired Jumboline, the online distribution subsidiary of Spain-based Jumbo Tours Group for 25 Mn euros. The company said that Jumboline operations comprised 7.6% of its total revenue in Q2.

A Closer Look At TBO Tek’s Q2 Expenses

The growth in TBO Tek’s bottom line came despite a significant increase in its overall expenses, which surged 32.6% to INR 386.4 Cr during the quarter under review from INR 291.3 Cr in the corresponding quarter last year. Employee costs emerged as the biggest expense head.

Service Fees: The company’s overall spending under this head grew 15% to INR 144.5 Cr in Q2 FY25 from INR 125.7 Cr in the year-ago period. Sequentially, it rose 4.2% from INR 138.7 Cr.

Employee Benefit Expenses: TBO Tek incurred INR 94.5 Cr in employee costs during the quarter ended September 2024, a staggering 51% jump from INR 62.4 Cr in the same quarter last year.

Finance Costs: The spending in this bracket zoomed more than threefold to INR 5.9 Cr in the second quarter of the ongoing fiscal year from INR 1.8 Cr in the corresponding period last year.

Other Expenses: TBO Tek saw its spending under this expense head surge 36% to INR 128.4 Cr in Q2 FY25 from INR 94.4 Cr in the year-ago quarter. 

TBO Tek is expanding its presence in the international markets. Last month, the company set up a new subsidiary by the name of TBO Tek Australia, to solidify its presence in the Australian tourism industry.

Prior to that, in September, TBO Tek incorporated a subsidiary in Canary Island, to strengthen its footprint in the region.

Shares of TBO Tek ended today’s trading session 0.20% lower at INR 1,678.10 on the BSE.