Nishant Pitti, co-founder and promoter of EaseMyTrip, is reportedly set to sell his remaining 14.21% stake in the company through a block deal valued at Rs 780 crore. The transaction is expected to take place on Tuesday, with Pitti offering 5 crore shares at a price of Rs 15.6 per share, according to Moneycontrol.
This follows a previous sale on September 25, where Pitti sold 1 crore shares at Rs 38.28 each, 16.91 crore shares at Rs 37.22 each, and 6.73 crore shares at Rs 37.42 each. The combined sale amounted to 24.65 crore shares, or 14% of the company’s stake, fetching Rs 920 crore.
Earlier, in June 2023, Pitti sold 6.25 crore shares of Easy Trip Planners on the BSE at Rs 42.60 per share. So far in 2024, EaseMyTrip’s shares have declined by 16.56%, although they recorded a 6.6% rise over the past five sessions.
The upcoming block deal has reportedly attracted interest from institutional investors, including CRAFT Emerging Market Fund PCC – Elite Capital Fund, Multitude Growth Funds Limited, CRAFT Emerging Market Fund PCC – Citadel Capital Fund, Nexpact Limited, and Eminence Global Fund.
As of now, the stock has seen a 17% overall decline in 2024.
Financial Overview
EaseMyTrip reported a 45.16% drop in profit for the September quarter, with net earnings standing at Rs 25.87 crore compared to Rs 47.18 crore in the same period last year. Revenue for the quarter saw a modest increase of 2.1%, rising to Rs 144.67 crore from Rs 141.69 crore year-on-year (YoY).
The company’s Q2 EBITDA decreased to Rs 42.29 crore from Rs 67.65 crore YoY, with the EBITDA margin narrowing to 28.2% from 46.8% YoY. The quarter’s Gross Booking Revenue (GBR) reached Rs 2,075.64 crore.
Growth Highlights
EaseMyTrip emphasized its non-air business segments as primary growth drivers during the quarter. The Hotels segment achieved a GBR of Rs 241.40 crore, marking a 178.4% YoY growth driven by a 75% surge in hotel night bookings, which reached 2.2 lakh. This reflects increased demand and improved market penetration.
The Trains, Buses & Others segment also recorded growth, with a GBR of Rs 40.70 crore, a 19.4% YoY rise. Additionally, the company’s Dubai operations performed strongly, reporting a GBR of Rs 172.50 crore, an impressive 371.3% YoY growth.
Operational cash flows for the quarter stood at Rs 58 crore.
Strategic Outlook
EaseMyTrip reiterated its commitment to long-term profitable growth by diversifying its offerings and expanding its international presence. “These achievements underscore EaseMyTrip’s focus on driving sustainable growth by leveraging diversified and global market opportunities to deliver lasting value to stakeholders,” the company stated post its Q2 results.
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