Good day, everyone and welcome to the Yatra's Fourth Quarter and Full-Year 2018 Conference Call. Today's call is being recorded. At this time, I'd like to turn the call over to Manish Hemrajani. Please go ahead.

Thank you, Ann. Good afternoon, everyone. Welcome to Yatra's fiscal fourth quarter and full-year 2018 financial results for the period ended March 31, 2018. I'm pleased to be joined on the call today by Yatra's CEO and Co-Founder Dhruv Shringi; and our CFO, Alok Vaish. The following discussion, including responses to your questions reflects management views as of today, June 11, 2018. We do not undertake any obligation to update or revise the information. As always, some of the statements made on today's call are forward-looking, typically preceded by words such as we expect, we believe, we anticipate or similar statements. Please refer to company's filings with the SEC for information about factors, which could cause our actual results to differ materially from these forward-looking statements. Additional information concerning these statements is contained in the Risk Factors section of the company's annual report on Form 20-F filed with the SEC on June 30, 2017. Copies of this and other filings are available from the SEC and on the Investor Relations section of our Web site. With that, let me turn the call over to Dhruv.

Thank you, Manish, and good evening to all of you. Our first full-year as a public company has been a landmark year for Yatra. The acquisition of ATB earlier in the fiscal year has consolidated our position as the leader in the large and growing business travel market in India and the brand refresh campaigns that we have undertaken during the past year have enabled us to drive significant organic growth on the consumer segment as well. The combination of these factors has helped us deliver annual revenue less service cost growth of 41.3%, coming in ahead of the top end of our guidance range of 35% to 40%. During the past quarter as well, we continued to deliver strong growth with air ticketing transactions up 38% and standalone hotel room nights booked up 54%, both well ahead of market growth rates. We believe that our unique approach of combining business travel and consumer travel in an emerging economy like India positions us well to capitalize on the rapidly expanding travel industry. The macro factors in India continued to be favorable. Domestic air traffic was up 24% year-over-year in the March quarter. We expect to see sustained growth ahead over the mid to near-term as we see an expansion happening in the number of airports by the government of India and meaningful expansion in the fleet sizes by domestic carriers. The travel industry in India is witnessing a period of sustained growth and we’re excited to be a leader in the sector. Now on to some additional data points that reflects the strength of our business during the quarter. Our growth this quarter as you'll see further down has been fairly broad-based with all our offerings experiencing strong consumer adoption. Revenue from our air ticketing business grew 35.7% in the…

Thank you, Dhruv. Good evening, everyone. As Dhruv mentioned in his opening remarks, we are obviously very pleased with the performance in our first full-year as a public company. On the key financial highlights for the year, on an overall basis our revenue less service cost grew by 41.3% year-over-year to INR 7.3 billion ahead of our guidance range of 35% to 40%.Growth in air passengers booked were INR 8.9 million, representing year-over-year growth of 29.2% with a favorable mix towards international travel. Standalone hotel room nights booked were 2.1 million representing an increase of 51.7% year-over-year. Coming to our quarter results for the period ending March 31, 2018. On an overall basis, revenue less service cost grew by 40% year-over-year to INR 2.03 billion. Gross air passengers booked were 2.5 million, representing year-over-year growth of 38.2%. Standalone hotel room nights booked were 682,000, representing an increase of 54.5% year-over-year. Revenue from our air ticketing business increased by 35.7% to INR 1.38 billion in the current quarter. This growth was driven by an increase in gross bookings of 34.6% to INR 22.2 billion in the current quarter. Our net revenue margins remained flat year-over-year at 6.2%. On hotels and packages, our revenue less service cost for this segment was up 62.7% year-over-year to INR 502 million in the current quarter. This growth was due to an increase in hotels and packages gross bookings of 42.4% and continued growth in standalone hotels on the back of largest online hotel inventory in the country. We also benefited from an improvement in our hotels and packages net revenue margins of 13.3% during the current quarter versus 11.6% in the year-ago quarter as our mix of standalone hotels improved. The increase in net revenue margin is due to change in business mix in favor…

Thank you. [Operator Instructions] We will take our first question from Jed Kelly with Oppenheimer.

Great. Thanks for taking my question. Just touching back and I’m sorry if I missed this and some of the opening remarks. Can you discuss how we should be thinking about fiscal year 2019 in terms of revenue growth? And then, how we should be modeling the sales and marketing and the leverage you expect there and some of the ATB synergies?

Jed at this point, we're not giving out direct guidance for the current fiscal year. We will do that by the end of the Q1 when we announce our Q1 results. The reason being we're still in the early days of integrating the ATB business. As you would recall the earn out for the current management ended only on 31 March. So over the course of the last couple of months we've been having interactions with the customer at ATB, trying to figure out the rollout plan for our platform into their customer base. So that’s part of the reason why we’re still in that assessment phase, its relatively early days. And secondly on the consumer direct business as well, while we’ve seen early indications of there being some rationality in the market, we wanted to see this play out for a slightly longer period of time before we give out more concrete guidance. Our business continues to grow healthily, they’re delivering strong growth. So we believe all the macros combined with our own execution should enable us to deliver healthy growth with improving operating performance in the current fiscal year as well.

Okay. And then, can you talk about some of the steps Yatra and maybe the airlines in India are doing to sort of combat some of the rising fuel costs we’re seeing?

Sure. So on the fuel prices we have seen some increase in fuel prices come through. At this point in time, the airlines have been fairly circumspect in terms of passing that cost on to the consumer. They have continued to absorb a meaningful part of it. There is active dialogue which is also happening between the airlines and the government to reduce the amount of taxes which are levied on aviation fuel. Aviation fuel in India is one of the most highly taxed across the globe and the airlines at least seem to be indicating that they might see some benefit coming through from the government. And if that tax benefit does come through, it will enable the airlines to operate without needing to pass on the cost to consumers.

And then, I think Booking.com just recently said India is their fastest-growing market and there has been some articles about some increasing supplier direct initiatives from some of the budget airlines. And then OYO Group joining MakeMyTrip. Can you just talk about the -- can you just give us an update on the competitive dynamics that you’re seeing right now in the market?

Sure. So on the competitive landscape, I will address the supply direct question first. So I think in India one of the key things to take into account is that India is largely moving towards being a mobile Internet market. And on the mobile environment, especially on the app side the environment inherently favors an intermediary. As a customer, you will download maybe a couple of apps of intermediaries and use those to book and transact as opposed to downloading six or seven different apps of airlines or in the case of hotels downloading the apps of thousands of hotels. India on the hotel front is extremely fragmented, and on that side we don't really see any risk of supply direct. On the air side as well while there might be some supply direct on the domestic front, on the international air front there is tremendous amount of choice which a customer has. So I mean take a basic example of a customer traveling from India to London or you can go via Middle East, you can go via Continental Europe, you can go direct, so you’ve got at least 350 odd options. In those scenarios, customers continue to prefer using the OTA platforms and on mobile devices its extremely hard and cumbersome for a customer to open multiple different apps and multiple different browsers to go and start comparing that intensively. So we feel given the mobile nature of the Indian market, it will continue to favor the intermediary environment. With regards to the other two questions on the hotel part, which is Bookings.com, Bookings.com while we do see Bookings.com being more active on the four and five star category. We don't really see them that actively on our core area of the budget hotels. Yatra has the largest inventory of budget hotels in India and that's the segment where we continue to see tremendous amount of growth. With regards to OYO, OYO was on the Yatra platform. They came on the Yatra platform a few months ago. So I think that’s the recent initiative that they've taken now to partner with MakeMyTrip as well.

Okay. Helpful. And then one more for me. Can you give us any update on the Norwest distribution? Any color you could provide there?

See with regards to the Norwest distribution, I mean, whatever information we have is also limited to whatever is publicly available. We've seen over the course of the last now I think maybe about 30 to 45 days the stock continuing to trade at healthy levels. And we've seen that rebound quite strongly from the lows of the mid 5s where it was. That to an extent gives us an indication that some of the selling pressure seems to have eased off. But this is again based on whatever we're seeing play out in the market domain only. There is no other color that we have beyond what's available in the public market.

All right. Thank you.

Sure, Jed. Thanks.

[Operator Instructions] We will go next to Jon Hickman with Ladenburg.

Hi. Thanks for taking my question. I was wondering if you could elaborate a little bit on this initiative by the government to open these other airports kind of where are we in that process? What are the airlines doing about that and the pricing is it what you expected it to be?

Sure. On the macro front, Jon, there are couple of things which are playing out and two large initiatives which are there, one of improving the existing infrastructure on some of the Tier 2 airports. So the government continues to operationalize about 75 to 80 airports in the past 12 months. Their focus has been on trying to not just make them available, but make these airports available for longer duration. Some of these airports have mixed usage, which is that they are used for civilian purposes as well as for military purposes. So for that reason they’ve expanded the time horizon during which they can be used for civilian purposes, thereby allowing more flights to operate in and out of these airports. The other initiative which is there, which is called the UDAAN scheme, which is spelled UDAAN. As part of that initiative, the government is promoting travel and aviation into some -- these are Tier 3 airports actually, where they’re subsidizing the price of an air ticket. So a certain part of the supply from these markets is capped at approximately $35 or INR 2500. We are seeing strong traction happening and what we’ve also witnessed is that Indigo which is the largest airline in India now putting in place an order for ATR aircrafts, which will operate into these markets. So there's incremental supply as well which is being put on the back of this into improving the connectivity, into these Tier 3 towns. And given that surface transport and rail travel in India continued to be challenging. From a consumer's choice point of view, this is becoming an obvious choice for the customer and that's what's driving the kind of healthy growth rate that you see of 24% in the first three months of this calendar year.

Okay. So can you give us any further maybe color on, I know you said you’re going to -- your bottom line is going to improve towards the back half of the year. Can you comment on your cash balances and how you feel about if you have the capital you need to get to positive operations?

Yes, so at this point in time, if you look at our cash balance, we had approximately INR 53 million of cash on the balance sheet as on March 31. Our cash consumption is ranging between $5 million to $7 million a quarter. So we feel at the moment we've got adequate capital, but as is public information, we file the Shelf as well. So at the right moment we would look at expanding and improving on our balance sheet.

Okay. Thank you. I appreciate it.

Yes. Thank you, Jon.

[Operator Instructions] With no further questions in the queue, this does conclude today's conference. We thank you for your participation. You may now disconnect.

Thank you.