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Easy Trip Planners Ltd
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Ladies and gentlemen, good day, and welcome to the EaseMyTrip Limited Q4 FY '22 Earnings Conference Call. [Operator Instructions] Please note that this conference is being recorded.
I now hand the conference over to Mr. Irfan Raeen from Orient Capital. Thank you, and over to you, sir.
Thank you, Lizan. Good afternoon, everyone. Myself, Irfan Raeen from Orient Capital. We are an Investor Relations adviser to the company. I hope that all of you and your family are safe and healthy. On behalf of EaseMyTrip Limited, I extend a warm welcome to all participants on Q4 and FY '22 financial results discussion call.
Today on the call, I'm joined by Mr. Prashant Pitti, Co-Founder and Executive Director; and Mr. Ashish Bansal, Chief Financial Officer. I hope everyone had an opportunity to go through our investor deck and press release that we had uploaded on exchanges and on company's website.
Before we begin with the call, I would like to give a short disclaimer. This call may contain some of the forward-looking statements, which are completely based upon our beliefs, opinion and expectation as of today. These statements are not guarantees of our future performance and involve unfortunately risks and uncertainties.
With this, I hand over the call to Mr. Prashant Pitti sir. Over to you, sir. Thank you.
Thank you, Irfan. Thank you. Hello, and good afternoon, everyone. Today on the call, I'm joined by Mr. Ashish Bansal, who is the Chief Financial Officer of the company; and also the Orient Capital as you know, our investor relationship partners.
The year 2022 was a remarkable year for the OTA industry and for this market. OTA platforms have gained popularity and acceptance, driven by the rapid spread of Internet services, smartphone usage and by providing one-stop shop for travel-related bookings at a competitive price point.
The online penetration defined as a share of bookings done through online captured their size for the service provided on the OTA for Indian travel industry accounted for 56% to 58% for FY '20. Further, it is expected that the share of online penetration of Indian travel industry is expected to increase to 67% to 68%...
Ladies and gentlemen, the line for the management has got disconnected. Please stay connected while we reconnect the management. Ladies and gentlemen, thank you for patiently holding. We now have the lines of the management reconnected. Over to you, sir.
Thank you. Thank you. So the online penetration for Indian travel industry is expected to increase to 67% to 68% in FY '23, supported by the growth in online transaction.
In the online segment, OTA have a significant share in air ticketing as compared with captive websites of the airline. The distinct advantage offered by OTA over captive website is that they allow multi-airline itineraries. OTAs are also in position to offer relatively higher discounts than captive sites.
Over the past 13 years, these markets has taken pride in being customer-centric companies and focus on efficiently catering to the rising needs of consumers and also in wide range of value-added services, in fact, that has remained [ unemployed ] during the course of pandemic as well.
EaseMyTrip became one of the fastest-growing OTA and has invested in technology to become more user-friendly, which has helped us gain customer loyalty. Tie-ups with various banks and payment channels had ensured competitive pricing across the segments. Going forward, the industry is expected to gain further transactions on online booking across the various segments.
Crystal research estimates...
Ladies and gentlemen, the line for the speakers got disconnected. Please be connected while we reconnect the speaker. Ladies and gentlemen, thank you for patiently holding. We now have the line for the speaker reconnected. Over to you, sir.
Hello, everyone. I apologize for the line getting disconnected. I am in Davos right now for the World Economic Forum. So it might be [indiscernible] right now [indiscernible].
Let me continue. So the crystal research estimates that the OTA industry would grow at the pace of CAGR of 9% to 11% to reach $130 billion to $150 billion by the financial year of 2025 driven by the change in consumer preference and technological advancements.
Also, the government of India will likely to add -- will likely to have between 190 to 200 operational airports by 2040, nearly 2x of the current level. In addition, the international airport will also double from 34 in 2018 to 70 by 2040. The commercial fleet is expected to go up from 695 aircrafts in 2020 to 1,200 by 2027 based on pending deliveries. I touched -- and it would touch 2,539 aircrafts by 2030.
India has amongst the largest pending deliveries to close over 585 aircrafts. Moreover, measures related to the privatization...
Ladies and gentlemen, the line for the management has got disconnected. Please stay connected while we reconnect the management. Ladies and gentlemen, thank you for patiently holding. We now have the line for the speaker reconnected. Over to you, sir.
Thank you. Thank you again. I have changed the other number. Let's hope this works. Thank you, everyone, for waiting patiently.
So let me continue. Moreover measures related to the privatization of airports and allowing 100% SDI in airport infrastructure should help in driving the expansion. Keeping the various emerging opportunities in mind, we continue to do as well as of the other expansions, the company has successfully established its corporate office in Dubai and will further this in opening corporate offices in U.K. and U.S. markets. In addition, the company will also look to develop our fintech arms to provide customers with buy now pay later option.
The company has well potential effects to capitalize the rising opportunities in such as increasing air connectivity to Tier 2 and Tier 3 cities at clearly competitive prices. Particularly offered by low-cost provisions, granted Indian consumers through consider all the other as the viable options along the business and measures [indiscernible] which also has positive effects of online bookings and further [indiscernible] of customers, which have participated. We have partnered with SpiceJet for newly launched holiday vertical of SpiceJet for holiday bookings. And also to increase our offering, we have a partnered with various insurance companies to provide the extra protection to our consumers.
Despite the challenges caused by the third wave of pandemic and restrictions imposed in various countries in the month of January and February 2022, EaseMyTrip continues to deliver robust annual growth in one of the most disruptive periods for travel and tourism industry. This was possible due to focused capital-light, low-cost, no-frill approach that sets us apart amongst the other OTA. In terms of profitability and cash flow and remarkably similar to the low-freight airlines in India.
We will continue to tap the growth opportunities not just in air segment, but in non-air segment as well. There, we have made a few of acquisition announcements in FY '22. EaseMyTrip is focused on expanding its portfolio into high-margin hotel and holiday segments. The company continues to follow an asset-light model by entering into agreement with hotel API providers rather than assuming any inventory risk on its book.
Further, with the help of data connected, the company finds a position to leverage, so enabled cross-selling opportunities. The company has higher number of hotel [indiscernible] compared to the market leader. After establishing a key portfolio in air shipping industry, EaseMyTrip focused on expanding in non-vertical easy access. The company strategically gained inorganic growth by acquiring innovative companies across various diverse travel segment and evolving into complete travel ecosystem.
EaseMyTrip is well on its track to fill the baskets from the emerging trend that is increasing the number of airlines and airports in India; number two, market share gain from other OTAs; number three, revenues from [indiscernible] international operations; and number four, which is expansion of hotels and tour booking. As a result, EaseMyTrip expect to continue its [indiscernible] of delivering consistent offer while supporting the revival of travel ecosystem.
With the new avenues of growth from non-air segment and companies continued focus on financial and operational efficiencies, the company will focus on continuing to generate long-term, sustainable value for customers, partners and investors.
Now let me speak about our performance and highlights for the quarter and the year of FY '22. We had a remarkable year of FY '22 with a profit up by 72.2% to INR 105.7 crores as against to the net profit of INR 61.2 crores in the corresponding year. Further, the FY '22 gross booking revenue stood at INR 3,715 crore, which was again up by 74.6% on year-on-year basis, generating strong and sustainable growth to its various stakeholders. Consistent annual performance across business continues to gain market share based on increased margins and commissions and enhanced operational efficiency, which enabled us to perform exceptionally well on all fronts.
In year FY '22, our air segment grew by 57% and 13% in quarter 4 of FY '22. We have been able to sell 70.85 lakhs in the segment in FY '22. We have witnessed strong demand and with our constant customer engagement such as acquisition and marketing initiative, we have been able to reach up our market share in air segment considerably.
As hotel nights seen a jump of 136% to 1.3 lakhs in FY '22 as compared 55,000 in FY '21. We have achieved a new high in our hotel nights bookings in FY '22 and are confident of future growth in this segment. With our competitors rising wide offerings across hotels and continued value acceleration acquisition.
In train, bus, others club together, we grew by 157% in FY '22 and 59% for quarter 4 of FY '22. Given the recovery of travel and tourism has enabled high growth in booking trains and bus segment.
Our adjusted revenue for FY '22 was INR 400 crores, which was up by 102% year-on-year basis and INR 98.4 crores against INR 100.1 crores for quarter 1 of FY '21.
EBITDA for FY '22 stood at INR 146.8 crores as compared to INR 87.5 crores for FY '21, which was again up by 67.7% year-on-year basis.
Profit after tax for FY '22 stood at INR 105.7 crores as compared to INR 61.4 crores for FY '21, which was again up by 72.2%. And for quarter of FY '22, despite the Omicron wave impacted quarter, it stood at INR 23.2 crores as compared to INR 30.5 crores for quarter 4 of FY '21.
With this, I will open the floor for discussions.
[Operator Instructions] The first question is from the line of Praveen from Edelweiss.
Am I audible?
Yes, sir, please go ahead.
Yes, Praveen, you are audible.
Ashish, are you also on the line?
Yes. I'm on the line.
Okay. So my first question is related to the GVR of booking revenue. So if I look at on the sequential basis, it's -- I can understand because of Omicron, may the first half of the quarter impacted. But it's down. And as well as I can see that your net revenue as a percentage of GVR, the percentage terms has also gone down. So can you give us some color what all apart from the Omicron has impacted these numbers?
Absolutely. See, Praveen, if you look at it -- you see that our discounts, the discounts which we gave for this particular quarter must have also gone down. And our gross margins consists of revenue from operations and discounts. So by nature, since the discount went up, that is why you are able to see the gross margins also go down a bit.
But another important point to notice that as we reduce the discounts -- you all are aware of that in the cases where people avail discounts, we charge convenience fees as well. So in this particular quarter, there was less discount given and hence, less convenience fees was collected from consumers, which basically accounted for adding a slightly lower margin. Also because of COVID wave 3, which was completely unexpected, we missed our targets and because it gave us some reduction in gross discount -- in gross commission.
Okay. So basically, there is a reduction in the discount and that's why the numbers are on the lower side? So can you give us some like, net revenue, how much of the...
Praveen, your audio is breaking up.
Okay. Am I audible now? Fine?
Yes, sir. Please go ahead.
Yes. So just to -- just a question on that, that as a net revenue after even discount, how much of the commission margin we can look forward to the way ahead?
[indiscernible] are actually more aggressive in selling and offering target-based commission. And we set up our targets slightly higher for the quarter, not anticipating COVID wave 3 to come. And that is why we might have missed some targets and because of which, overall, there was a reduction of around 1.2%. But we -- the current quarter is going extremely strong, and we look forward to meeting our target.
Sir, it is nothing to do with the higher fare in the market like revenue as a percent of GBR to go down?
See targets are on the basis of volumes, not on the basis of revenues.
Okay. Okay. Also, can you talk more on the market share on the Q-on-Q basis? Is that moving in the -- you're gaining or you are losing side? How is the market share in the air travel going for you?
So we believe that the market share is only rising upwards since the last 4 years, and the trend continues. If you see that the GBR despite the pandemic did not fall dramatically. From INR 1,293 crores for the last quarter, it came to about INR 1,170-odd crores. So that should give you confidence that the bookings are going in the right direction. So our overall market share should be in north of 10% for the overall market, and for the online market should be north of 20%.
Okay. And also, is it possible to share the newly [indiscernible]
Sorry to interrupt, Praveen. Your voice is breaking up.
Is it possible to share on newly acquired entities? Any number like Traviate or Spree Hotel, how much of the sales generated or margin?
So basically, our Traviate deal is not complete yet. For Spree and Yolo, we have successfully acquired these companies. And I think for Yolo, the number target coming from March onwards, and for Spree probably from January onwards. So both the companies are looking very strong. And we are looking forward to grow along with them. I should not be able to...
Sorry.
For Spree, it started from December last year. Am I correct, Ashish? Ashish, you'll have to unmute yourself to speak. But I remember, Spree started from December last year and Yolo started to March this year.
Because I can see that your hotel contribution is continuously from 3 quarters going down.
Sorry?
I can see that your hotel, like apart from the air ticketing, the hotel numbers is continuously on the downtrend from the 3 quarters.
This particular quarter, numbers went down primarily for the entire industry because of the Omicron, which happened. So this quarter, you will have to just take blip in the time at the moment. We are extremely bullish about our hotel segment and the way we are running our hotel business. If you see compared to the last year, we have gone up by 136%. So for this particular quarter, because of the Omicron, you'll have to excuse but otherwise, we feel very comfortable with our hotel product.
We'll move on to the next question. That is from the line of [ James Varghese from Earthwise India ].
Prashant, can you hear me? Hello?
You audio is also not that clear.
Can you hear me now?
Excuse me, sir. I'll request you to use the handset mode while speaking, Mr. Varghese.
Can you hear me now?
Sir, please use the handset mode, not the speaker phone.
Okay. One second. Hello?
Yes, sir, please go ahead.
Yes. Prashant, can you hear?
I can hear you now. I mean it's still very ruffled, but we'll try to make sense of it. Please go ahead.
Okay. So what is your outlook for your hotel segment? How much percentage of revenues you can capture by, say, by FY '25?
Could you share your question?
I just want to know your outlook on hotel segment. I mean, how much percentage you can capture as a percentage of revenue by FY '25?
So basically, I can tell you the efforts which we are taking to grow over hotel segment, we want to basically introduce our hotel APIs to the B2B travel agent network as well and also to the corporates. That's a new initiative which we are taking. And with the acquisition of Spree, we can also strengthen our hotel product and offer consumers who are flying, Spree room right along with the flight. So we are really focused on adding more avenues, adding more hotels, adding more consolidators so that our prices go down and our consumer experience becomes better. From last year, we have grown by 136%. We look forward to have growth at least in double digits, if not triple digits, for the next couple of years.
Okay. So that will obviously continue to improve by consolidated EBITDA margin going forward?
That is correct.
Okay. And when you say that the OTA can offer better discounts than captives? Why is that so?
See, as an OTA, we can -- we tie-up with banks, we tie-up with credit card companies to offer them additional set of customers, not just for flights, but for hotels, for banks, for buses, for trains. And that is why some portion of discounts are transferred by the banks and the credit card companies, and also the digital payment companies for that matter. So as an OTA, we are in better position to make history with these bank digital payment because we are serving more than 1 product to the consumer.
The next question is from the line of [indiscernible] Baskar from Monarch Networth Capital Limited.
Prashant, I had a question regarding your employee cost, which I can see that it has increased in this quarter. I can see that from the last quarter also it has increased from INR 6.9 crores to INR 9.3 crores and Y-o-Y also like around 55%. So what's the major reason behind this?
The major reason behind it is the addition of new employees, which have come from our acquired subsidiaries. And also because of the increment, which we got -- our increment cycle works on December. So in December, we give increments. And that is why in January, you were able to see impact of it. So it's the increment which company cycle runs in December month. And also primarily the -- primarily the reason was basically the acquisition of new subsidiaries.
Okay. So I have a next question. So I can see that your debt has also increased. So why is that?
Ashish?
It is because [indiscernible] also increasing and are better mainly relates to the receivable or the...
Sorry to interrupt Mr. Ashish Bansal, we are not able to hear you clearly.
Ashish, you're not audible at all.
Okay. Is it clear now?
No, sir. It's still the same.
Okay.
Mr. Bansal, I'll disconnect and reconnect you.
That's okay. Ashish, try again please.
Yes. Okay. Hello?
Yes, this is better. Go ahead.
Because our [indiscernible] also increased during the year. And our sales picture mainly relates to the commissions which we received from the lender. So as business grows, our commission also grows. At the same time, there is some growth in B2B and the corporate business side. So that's why there is an increase in [indiscernible].
The next question is from the line of Madhuchanda Dey from MC Pro.
Prashant, my question is, you mentioned about the discount. But suppose if I exclude the discount both from the revenue and the cost line and try to compute the realized revenue on GBR that also shows a significant sequential decline. So what explains that?
The decline is of around 1.5%, Madhu, if you look at it. I mean as a percentage, if you look at it, the decline is at 1.5%.
Yes, it is from 6.7% to 5.2%.
Correct. It is so called 1.5%. And the reason of this decline are twofold. One is since we did not -- since we gave lesser discounts, we also received lesser convenience fee. I hope you get the point. So we kind of missed on the convenience fee portion. For which if we had given more discounts, the convenience fees would have also come along with that. So that's number one. And number two, as I said, because of this abrupt third wave of COVID, which was not anticipated, we missed some of our targets. Because of this, we got lesser commission from the air. It's a target-based reduction.
So the first point is lesser. Since you had given lesser discounts, you got lesser convenience fee. Is it a missed business opportunity or what is it exactly?
So as much as we have been following this policies since year 2016 where you don't have to take convenience fees if you're not using any discount coupon. But if you're using a discount coupon, we charge convenience fee. Now what happens in our case is that most of the time, half the money is sponsored by the bank or the payment gateways or by the credit card companies and half the money is sponsored by us. So let's say, if there is a discount of INR 500, which is offered to consumers, INR 250 comes from us and INR 250 comes from the bank. However, in lieu of using a discount coupon, we charge consumers INR 270 as convenience fee. So net-net, it really does not affect EaseMyTrip if we give more discounts. But in these times since the discounts were given less, the convenience fees which EaseMyTrip collected was also lesser. And because of this, the gross margin is slightly smaller.
Okay. Got the point. Is there any reduction in the commission that you get from the airlines?
So as I said that the airlines are more aggressive in selling and offering target-based commission, Madhu. So the targets went a little bit here and there because of the Omicron. Otherwise, it's target-based commission. And we look over to meeting the targets for this particular quarter.
I mean I got your point fully. But my question is, there must be something like per X number of tickets, you get this kind of a commission. Has there been a downward revision in that rate?
The offering has the same, it's just the business setup.
Okay. And the other question is on the other current assets, which is about INR 120 crores. Is that primarily the loan given to the airlines? Or is it something else?
Ashish?
Yes. [indiscernible]
Sir, I can't hear you at all.
Ashish, you'll have to probably disconnect and connect back again. Your voice is really not audible.
Okay.
Operator, can you please help Ashish? Ashish, use other phone to whatever, but you're not audible.
I'll disconnect Mr. Ashish Bansal and reconnect him.
Madhu, any other question which may I take?
Yes. Just one question to Mr. Prashant, that is what is your outlook? I mean I know that like looking all around travel sector is booming. But in terms of -- I know you don't give explicit guidance, but in terms of basic understanding of where the company is heading, what would you like to call out for FY '23?
Sure. So basically, as an overall guidance, I can say that the best time for the trave and tourism in India are ahead of us. The pent-up demand is extremely strong and is extremely real. Despite the payers go up, we have seen flights and hotels go chockablock, so which kind of gives credibility of how eagerly people are looking forward to travel.
And given that there are new airports and the new aircrafts which are coming in and OTA industry getting more and more preference over the direct captive ones or the travel agent. In fact, I would say that the OTA industry is a beneficiary of COVID in the long run because it has made people to use things online rather than go to their travel agent, traditional travel agent as they used to do earlier.
So overall, I think my sense is that we are in a very, very strong situation to capitalize all the great things which are ahead of us. And another thing is that as you all may have heard that there is a lot of noise around venture capital money, which is going to basically not be as really available as what it was earlier.
So that is, in fact, music to EaseMyTrip here because we have never been dependent on BT or PE money. So if that is the case for the next couple of years, EaseMyTrip is going to be a beneficiary of it because most of our competitors are dependent on them. And if we are going to have cash scarcity, we will be able to perform much, much better.
So these are the things which I'm really looking forward for the next couple of years. Our PAT has only increased in the last 3 years from INR 33 crores in FY '20 to INR 61 crores in FY '21 to INR 106 crores -- INR 105.7 crores now in FY '22. We look forward for a stronger March marching forward and continuing to grow.
There are no piece of information which I would want to share is that we are quite bullish on using our technology and our operations, the leanest of the leanest operations which we have created in India. Imagine the kind of value it can give to the consumers which are living in for that matter in Dubai, U.S. or U.K. The kind of competitive advantage we will have while fighting the other people who are phased out of there would be [indiscernible] And that is why at EaseMyTrip, we are quite excited about our global expansion, Madhu.
I have 2 more questions if I'm allowed. One is your GBR, of course, on a very low base, short up by close to 75% year-on-year for FY '22. So what kind of ballpark should we or growth should we be working with?
Well, I would want to see the continuation of 15 percentage -- or at least in double digits, in the higher double-digit side, Madhu, for the coming years. Given that there will not be a few disruption of any more COVID waves or any other calamity. But otherwise, I see the pent-up demand to be very strong and the industry to be very well right and EaseMyTrip to be in perfect position to capitalize on the gain...
If I just...
Sorry to interrupt, Ms. Dey.
I'll come back. I'll come back. Yes, I'll come back.
Is Mr. Ashish again on the line?
Yes, sir.
Yes.
Ashish, yes, I think maybe it's slightly better.
Okay.
The next question is from the line of Anmol Garg from DAM Capital.
Prashant, Ashish, just have a few questions. Am I audible?
Yes, you're loud and clear.
Yes, sure. So just had a few questions. Firstly, if you can give some outlook on the marketing expenses for next year. Are we expecting the marketing expenses, I'm talking about including discounts to increase further from here on? And if you can specify that how much in absolute terms or in the percentage terms we are looking or planning to increase the same?
My second question is on the advances to the airlines. If you can give us some trend how the advances to the airline has changed and also some outlook on how that will be for the next few years -- for the next year, particularly. I have a third...
Yes. Sure, sure. No, but I think let me just answer these 2 questions. So first question is basically the outlook on percentage change on marketing and discounts. So I -- for the marketing, I can say, discount is slightly more variable. It is more industry-specific. I personally believe that the discounts probably will remain the same or go slightly lower because of the thing which I just told you that the venture capital firms are pulling back in investing in start-ups, in the companies because of which I think that the discount portion probably will remain the same or probably go down.
In terms of marketing, I think it could probably be 20 bps plus or minus of what it is. As a percentage of GMV, it will continue. It is pretty stable since last couple of years, and we would want to continue it that way. It might go up or down by 20 bps, but it will not be a significant change. That's the answer to your question number one. Your second question was, can you please just repeat?
Yes. Sir, my second question was the outlook on the advances that we give to the airlines to maintain...
In the last year, the additional -- in the entire last year, the additional advance, which was given to the airline was only INR 40 crores put together. So we believe that that's a very fair number. Ashish, if you want to talk more about it?
Yes, sir. To give the additional advance of around INR 40 crores to the airline. And this deposit, it help us to get better commission from the airlines. So that's why the company for better fund management, they pay the amount in advance.
Sure. And is there something of an outlook that we can give is the amount that we are expecting to increase going, right?
As and when the GMV increases, advanced deposit also increase. So in the same way, I think we believe the advance may go up.
Sure. And just 2 bookkeeping sort of questions. Is that -- if you can give an outlook on the receivable days going ahead, what can be the receivable days that we can expect going ahead? And secondly, what can be a sustainable OCF to EBITDA that we can expect going ahead? That's it from mine.
Our receivable days, see, as you compare with our GMV, it is possibly 1.5% of our GMV. So it's around 10 days or so. And as far as operating cash flow you are talking about?
Right.
So what is the question?
So if you can give that -- what can be a comfortable level for OCF to EBITDA that we are planning to sustain for the next few years?
See, if you see our operating cash flow this time, it is on negative side because we use the funds for the business. And in the long run year of the view that all EBITDA will go to the cash or -- our EBITDA will go to cash or by new acquisitions. So it will be difficult for us to predict the level of OCF vis-a-vis EBITDA.
The next question is from the line of Ronak Kura from AUM Advisors.
Yes, sir. I didn't understand. We have sold more tickets from 18 lakhs to 20 lakhs for the current quarter on a Q-on-Q basis. Then while the revenue from operations is lower for us, which has reduced from INR 86 crores to INR 60 crores for -- on Q-o-Q basis.
So basically, the commitments which we make for basically the targets, the target-base commitment are variable. The targets get decided at the beginning of the quarter. And on the basis of understanding, not expecting COVID wave 3 to come, we anticipated our targets to be slightly higher and we agreed upon it. So it is not directly comparable to the year before because at that time, the targets were lower.
So did we -- so is it something like we had committed lower, which is why our variable from the airlines was lower?
No, no, no. It's not that we committed lower. We missed the target because of the Omicron and also the other reason, as I mentioned earlier, which is that because we gave lesser discounts, we collected lesser convenience fee. And this is -- the convenience fee is a interior part of the gross discounts -- the gross commission. So if you see both ways that the gross commissions are basically revenue from operations plus discount. So because since the discount decreased, the gross commissions, you see a decrease. And then on top of it, since the discounts were low, we collected lesser -- we collected lesser convenience fee. And then on top of it, we missed some of the targets, because of which -- because of the COVID, because of which the overall impact was around 1.4% to 1.5%.
Okay. So can you -- is it possible that you can quantify to us that how much have you competed and how much -- from what mark has we missed it with the airline in terms of number?
These are confidential terms and conditions between us and the airline. This are strong competitors-sensitive information.
And sir, okay, not that sense. If you can just help us that if we had achieved our committed numbers, how much improvement in terms of revenues would we have seen in the current quarter?
The current quarter is going very strong. And we feel -- I mean unless any big thing happens for the remaining months at the time duration, we feel confident of achieving the target.
The next question is from the line of Shrenik Bhandari from [indiscernible] Academy Private Limited.
Sir, you mentioned that we haven't met the targets for this quarter. So have we been able to renegotiate the targets with the airlines?
I couldn't hear you, the question.
Yes, sir, you mentioned that in the last quarter, the company failed to meet its target. So have you been able to reduce the targets or the targets are the same and we expect better performance?
So targets are variable. This is the terms and conditions between the DMS, and I cannot talk about it, but they are variable and every quarter they change.
Okay. Another question is, if the currently the fares have -- flight fares have been increased due to various reasons. And there's an impact on the GBR. When this -- if we expect the fares to go down, how much does it affect our adjusted revenue?
I couldn't understand your question partly. It was breaking, your voice is breaking.
In our business, the GBR has increased because of fare also, our commission also better on that.
Ladies and gentlemen, due to time constraint, that was our last question. I now hand the conference over to Mr. Prashant Pitti for his closing comments.
Well, firstly, thank you, everyone, for being part of the conference, and I apologize for the bad line connection which we have had in between.
But to conclude, I would like to highlight that EaseMyTrip continues to strengthen its position with more convenience fees model, which is ready to become -- a bit ahead to become 1 of the fastest growing OTA, robust cost control, making us one of the most profitable companies and while distribution network supported by the hybrid platform. We are confident in our goal to focus on expanding the hotel and holiday packages, the railway ticketing operations and leveraging existing travel agents in Tier 2 and Tier 3 cities. And we continue to focus on corporate bookings and drive business to keep the business and presence in the sectors like bus, train, travel and the other sectors and increase our profitability in the future.
So thank you, everyone, for joining us. I hope we have been able to answer all your queries. In case if you require any further clarification, you may reach out to Orient Capital, our Investor Relations partners. Thank you.
Thank you. Ladies and gentlemen, on behalf of EaseMyTrip Limited, that concludes this conference call. We thank you for joining us, and you may now disconnect your lines. Thank you.