RailYatri Reports Strong Financial Performance in FY23, Revenue Nears Rs 300 Crore Mark
RailYatri, a train ticketing platform, has showcased impressive financial health over the past two years. Their revenue has grown significantly, reaching close to Rs 300 crore in FY23. Furthermore, the Noida-based company has successfully reduced its losses during the same period.
Revenue Growth and Business Diversification:
RailYatri’s operating revenue surged by 2.3 times, reaching Rs 273.73 crore in FY23 compared to Rs 117.21 crore in FY22. This growth is evident in their consolidated financial statements filed with the Registrar of Companies.
Established in 2014, RailYatri provides more than just train ticket information. They also offer intercity bus services through IntrCity SmartBus. This service runs on several routes, such as Chennai-Coimbatore, Bengaluru-Hyderabad, Mumbai-Pune, Delhi-Kanpur, and Delhi-Lucknow. In addition, RailYatri has launched a “flexi-ticket” function that lets customers change their itinerary at the last minute—even in cases when reservations for trains aren’t available.
Revenue Breakdown and Expense Management:
While 93% of RailYatri’s revenue originates from their roadway operations, the remaining portion comes from sources like installation and commissioning and advertising and publicity. They also generated approximately Rs 6 crore from interest and gains on financial assets in FY23, contributing to a final topline of Rs 279.75 crore.
Employee benefits accounted for 11% of their total expenses during the period. This cost witnessed a 26.7% increase, reaching Rs 32.9 crore in FY23 compared to Rs 25.97 crore in FY22. It’s important to note that this includes expenses related to employee stock options and purchase plans.
In contrast, advertising and promotional costs experienced a 21.8% decline, reaching Rs 6.4 crore in FY23. On the other hand, information technology expenses saw an increase to Rs 1.82 crore during the same period.
It’s worth noting that RailYatri categorized a significant portion of their expenses, approximately Rs 242 crore, as miscellaneous. This category likely encompasses outsourced support, cashback and discounts, and other operational and administrative costs incurred during FY23.
Overall, RailYatri’s total expenditure witnessed an 83.4% rise, reaching Rs 298 crore in FY23 compared to Rs 162.5 crore in FY22.
Improved Financial Health and Key Metrics:
Despite the increase in expenses, the company managed to achieve a significant 58.5% reduction in their net loss during the year. Their losses shrunk to Rs 18.2 crore in FY23 from Rs 43.87 crore in FY22.
Their operating cash outflow also improved by 45%, reaching Rs 19.96 crore in FY23, indicating increased operational stability.
Amidst this improved financial performance, RailYatri’s EBITDA margin and ROCE (Return on Capital Employed) also strengthened to -5.55% and 13808.33%, respectively, in FY23. Interestingly, on a unit level, RailYatri spent approximately Rs 1.09 to earn Rs 1 of operating revenue in FY23.