EaseMyTrip is expecting a positive cashflow from ops this year: CEO

Notably, the company's biggest revenue drivers over the last few quarters have been its non-air segments and increased hotel bookings

Online travel platform EaseMyTrip is looking to turn the corner and become profitable in the first quarter of the financial year 2024-25 (FY25), CEO and co-founder Nishant Pitti said.

The firm had slipped into red in the fourth quarter of FY24 for the first time since its public listing in 2021, mainly due to write off of amounts recoverable from now bankrupt Go First.

“Our focus has always been profitability, and this will continue to be our focus this year as well. We anticipate our next quarter to be positive in terms of revenue and profits too. Despite our overall business exhibiting comparatively slower growth, we have observed that our profit after tax has improved significantly,” Pitti told Business Standard.

The loss, Pitti said, was a result of a write-off of recoverable dues from Go Air worth Rs 54 crore net of taxes.

“We assessed the scenario and came to the conclusion that the chances of recovering the finances were slim amid GoAir’s ongoing dispute resolution process at the National Company Law Tribunal,” he said.

Go First was founded as GoAir and was later renamed.

The company’s biggest revenue drivers over the last few quarters have been its non-air segments and increased hotel bookings.

In the fourth quarter (Q4) of financial year 2023-24 (FY24), hotel night bookings for the firm grew by 39 per cent, and other bookings, including trains and buses, rose by 53 per cent.

For the entire financial year, hotel night bookings increased by 49 per cent, while other bookings saw a 67 per cent rise.

“At the beginning of this year, we had set targets for growing our non-air segments. We feel we are on the right track as our non-air divisions are exhibiting strong growth,” said Pitti.

The company is also making investments in artificial intelligence (AI).

Last year, we introduced our AI-powered Smart Voice Recognition Technology, which revolutionised travel booking by allowing users to make reservations through simple voice commands in multiple Indian languages.

Additionally, the firm acquired CheQin.ai, to enhance its hotel booking platform with AI-driven features that “improve bargaining capabilities and booking efficiency.”

“It is too premature to start talking and demarcating numbers at this juncture. However, our investments towards an AI powered platform that has the capability to streamline travel bookings to provide unparalleled convenience is always going to be an ongoing process,” Pitti said.

EaseMyTrip is gearing up for offline expansion this year, with the goal of opening 100 stores by the end of FY25.

“These stores will help us reach a broader audience and provide personalized customer experiences, particularly in smaller cities where personal relationships are highly valued. We're also planning more acquisitions, targeting asset-light and technology-based companies, to enhance our offerings and meet the rising demand for premium travel experiences,” he said.