Yatra Online, Inc. — FY2022 Form 20-F summary
Period: Fiscal year ended March 31, 2022, compared mainly with the year ended March 31, 2021. This is an annual report, not a standalone “2021 Q4” filing. Financial statements are prepared under IFRS as issued by the IASB; amounts below are INR unless stated otherwise.
Business context and financial performance
Yatra operates an online travel and corporate travel platform primarily in India, with air ticketing, hotels and packages, and other services including rail, bus, cab and freight forwarding. Management attributed the year’s recovery to improved domestic travel demand as COVID-related restrictions eased; recovery was interrupted by infection waves and travel restrictions.
| Metric | FY2022 | FY2021 | Change / context |
|---|---|---|---|
| IFRS revenue | INR 1,989.4 million (US$26.2 million) | INR 1,271.3 million | Up 56.5% |
| Adjusted Revenue, non-IFRS | INR 3,302.4 million | INR 2,190.6 million | Up 50.7%; adds back customer promotion and loyalty costs deducted from revenue under IFRS 15 |
| Gross Bookings | INR 34.3 billion | INR 15.8 billion | Up 116.8% |
| Net loss | INR 482.5 million (US$6.4 million) | INR 1,194.9 million | Loss narrowed; FY2022 basic and diluted loss per share were INR 7.66 |
| Adjusted EBITDA, non-IFRS | Profit of INR 159.0 million | Loss of INR 378.7 million | Turned positive; excludes specified items, including share-based compensation |
| Operating result | Loss of INR 431.5 million | Loss of INR 1,470.2 million | Improved, but remained a substantial operating loss |
| Operating cash flow | Used INR 972.2 million | Generated INR 765.4 million | Reversed to cash outflow, largely reflecting higher working-capital needs |
| Cash and cash equivalents | INR 800.3 million | INR 1,711.6 million | Down INR 911.3 million |
Air Ticketing and Hotels and Packages Adjusted Revenue increased to INR 2,211.1 million and INR 599.2 million, respectively. Their net revenue margins were 8.0% and 17.2%, down from 11.4% and 20.6% in FY2021; the filing cautions that FY2021 margins are not comparable because of unusually high cancellations relative to new bookings. “Adjusted Revenue” and “Adjusted EBITDA” are non-IFRS measures and may not be comparable with similarly named measures at other companies.
Balance sheet, liquidity and material changes
- At March 31, 2022, total assets were INR 5.465 billion, total liabilities INR 4.572 billion and total equity INR 892.2 million. Current assets of INR 4.185 billion were approximately equal to current liabilities of INR 4.184 billion.
- Cash and cash equivalents were INR 800.3 million and term deposits INR 568.3 million; INR 486.1 million of deposits were pledged against banking and other facilities. Trade and other receivables rose to INR 1.935 billion from INR 870.5 million.
- Borrowings, including factoring and vehicle loans, increased to INR 358.6 million from INR 131.1 million. Lease liabilities were INR 269.7 million at year-end. Net cash used in investing activities was INR 86.5 million; capital expenditures were INR 104.9 million.
- Revenue and bookings rebounded sharply from the pandemic-affected FY2021, but the company remained loss-making and operating cash flow turned negative. Management nevertheless stated that existing cash and expected operating cash flow should cover anticipated needs for at least 12 months.
Outlook, risks, contingencies and unusual items
- Outlook: Management cited Indian air traffic above 85% of pre-pandemic levels at the time of the report and anticipated a possible return to pre-pandemic levels by Q4 FY2023. This was an expectation, not formal financial guidance; further COVID variants, restrictions and travel-demand changes remained uncertain.
- COVID-19 and travel exposure: Cancellations, refunds, supplier payment terms and weaker bookings can pressure working capital and cash flows. Yatra also depends materially on a limited number of domestic airlines and GDS providers, whose commissions, incentives and inventory access may change.
- Controls: Management concluded disclosure controls and internal control over financial reporting were ineffective at March 31, 2022 because review-control documentation was inadequate. The independent auditor issued an adverse opinion on internal control effectiveness. The financial-statement audit, separately, expressed an unqualified opinion. Management described remediation but gave no completion assurance.
- Unusual items: FY2022 included INR 209.6 million of share-based compensation, an INR 72.7 million impairment of a joint-venture loan, INR 55.8 million of Indian IPO-related expense and a INR 41.6 million gain reported as share of joint-venture results. FY2021 included INR 264.9 million of goodwill impairment.
- Legal and tax matters: Yatra’s Delaware litigation against Ebix was dismissed, and the Delaware Supreme Court affirmed that result on April 11, 2022. Group entities disputed Ezeego insolvency claims, including a stated cumulative operational-debt claim of INR 251.3 million including interest; proceedings were pending. The filing also reports contested Indian service-tax demands and other proceedings; it recorded no provision for specified contingent claims because management considered payment not probable.
- After year-end financing: Yatra Freight received INR 150 million of 14% non-convertible debentures in July 2022, secured by assets and a Yatra India guarantee. Two subsidiaries also obtained aggregate Axis Bank credit facilities of INR 550 million, secured by receivables, assets and fixed-deposit cash margin.
- Other risks: Competition, foreign-exchange exposure without hedging, partner credit and concentration, potential Nasdaq listing compliance, and the proposed Indian subsidiary IPO are material uncertainties. The filing provides no assurance that the Indian IPO will be completed.
Important facts for investors to verify
- Whether the internal-control material weakness has been remediated and whether subsequent filings report effective controls.
- Whether revenue recovery converts into sustained positive operating cash flow, particularly given the increase in receivables and the fall in cash.
- The collectability and aging of receivables, supplier refund obligations, pledged deposits, and the terms and availability of factoring and bank facilities.
- Developments in the disputed Ezeego and tax matters, and the actual use, cost and repayment terms of post-year-end financing.
- Whether the travel recovery and any Indian IPO progress match management’s stated expectations; distinguish non-IFRS measures from audited IFRS results.