Shares of Easy Trip Planners hit a record high of Rs 415 and rose 10 per cent in BSE in trade during Tuesday on the back of heavy volumes. The travel support services company’s stock has risen 20 percent in the past two trading days on the hopes of making good profits. The company’s management is very optimistic about pent-up demand in the travel industry.
12:49 pm; The stock rose 8 per cent at Rs 407.30, compared to a 0.38 per cent rise in the S&P BSE Sensex. Over-the-counter trading volumes more than doubled as 6.75 million shares of NSE and BSE aggregated shares were traded. In the past month, the stock is up 50 percent, compared to 11 percent in the S&P BSE Sensex Index.
The company operates EaseMyTrip.com. According to Crisil’s February 2021 report, EaseMyTrip is India’s second largest online travel platform in terms of flight ticket bookings. The website is one of the fastest growing internet companies, growing at a compound annual growth rate of 50 percent.
EaseMyTrip offers “all-in-one” travel solutions including airline tickets, hotels, trains and buses, holiday packages as well as additional value-added services. The company has offices across Indian cities, including Noida, Bengaluru and Mumbai. International offices (as subsidiary companies) are located in the Philippines, Singapore, Thailand, UAE, UK and USA.
In the past two days, the share price of Easy Trip Planners has rebounded 463 per cent from its 52-week low of Rs 73.75 touched on April 19, 2021. Earlier, the company had raised Rs 510 crore through an initial public offering (IPO) At issue price of Rs 93.50 per share. Later, the company issued a bonus share in the ratio of 1:1 i.e. one additional share or every one share owned in the company.
For the first nine months ending December 2021 (9 months FY22), Easy Trip Planners recorded a 167% YoY jump in consolidated net profit at Rs 825 crore. Adjusted revenue grew 208% YoY to Rs 3,020 crore. The company remains very optimistic about the next quarter as the company will continue to strengthen its weak and efficient infrastructure.
Easy Trip Planners anticipates increased demand to boost the travel and tourism sector after travel restrictions are eased. “With minimal financing cost and lower future depreciation and capital expenditures, we expect the majority of EBITDA to flow into profit after tax (PAT),” the company said in a statement.
The administration also noted that online travel was one of the sectors hardest hit by the pandemic. “With the recovery likely to be U-shaped at best, domestic travel in India is set to recover faster compared to international travel (including hotels and holiday packages). For domestic travel, the industry should reach pre-Covid volumes by early 2021,” the company added.