Ixigo's Profit Surges by Over 100% in FY24, Reaches Rs 73 Crore

Travel technology platform Ixigo, recently listed on stock exchanges, achieved significant financial milestones in FY24. The company reported a substantial increase in profit, soaring from Rs 23 crore in the previous year to Rs 73 crore. This remarkable growth underscores its robust financial health and market position.

Revenue and Transaction Metrics

Ixigo's total income surged to Rs 665 crore, marking a notable 28.6% rise compared to Rs 517 crore in the preceding fiscal year. The Gross Transaction Value (GTV) crossed Rs 10,000 crore, reflecting a robust 38% year-on-year growth for the full year and 34.9% growth in Q4 FY24.

This growth was predominantly driven by a 75% increase in flight GTV for the year and 63.6% growth in Q4, underscoring strong market traction in the aviation sector.

Market Dynamics and Challenges

Despite overall single-digit growth in the flights market and challenges such as supply constraints and higher airfares impacting take rates, Ixigo managed to outpace the market in volume growth across flight, train, and bus verticals. The reserved train ticket market saw minimal growth during the period.

Strategic Focus and Expansion

Ixigo's strategic focus on expanding its market share was evident, particularly with the rise in spiritual tourism, highlighted by increased searches to Varanasi and significant traction on flight sectors connecting emerging airports like Ayodhya, Darbhanga, Jharsuguda, among others.

This strategy enabled the company to capture higher market shares compared to the national average.

Sectoral Insights and Future Outlook

According to Aloke Bajpai, Group CEO of Ixigo, the travel and tourism sector is poised for substantial growth, contributing significantly to India's GDP. Forecasts suggest it will contribute approximately 7% to the Indian economy by 2033, employing over 58.2 million people nationwide.

This outlook underscores Ixigo's strategic positioning to capitalize on sectoral growth through innovative market approaches and expanding service offerings.

Leadership Perspective and Operational Strategies

Rajnish Kumar, Group Co-CEO, highlighted Ixigo's operational resilience amidst market challenges, emphasizing their continued growth in flight and train volumes.

The company's ability to adapt to changing market dynamics while maintaining strong operational performance underscores its leadership in the travel technology space.