Hello, everyone, and welcome to the Yatra Third Quarter 2025 Earnings Conference Call. My name is Ezra, and I will be your coordinator today. [Operator Instructions]. I will now hand you over to Manish Hemrajani, VP of Corporate Development and Investor Relations. Manish, please go ahead.

Good morning, everyone, and welcome to our earnings conference call for the fiscal third quarter of 2025, covering the period ended December 31, 2024. I'm pleased to be joined on the call today by Yatra's CEO and Co-Founder, Dhruv Shringi; and CFO, Rohan Mittal. Before we begin, I would like to remind you that certain statements made on today's call may constitute forward-looking statements. These statements are based on management's current expectations and beliefs and are subject to various risks and uncertainties that could cause actual results to differ materially. For a detailed discussion of these risks, please refer to our filing with the SEC and the press release we issued earlier today, which is available on the Investor Relations section of our website. With that, I'll turn the call over to Dhruv. Dhruv, please go ahead.

Thank you, Manish, and good morning, everyone. Thank you for joining us for our third quarter 2025 earnings call. For the quarter ended December 31, 2024, we reported revenue from operations of INR 2.35 billion, representing a year-over-year increase of 113%. Our Revenue less Service Costs, which is our gross margin grew 25% year-over-year to INR 1.04 billion. These are primarily driven by strong performance in our Hotels and Packages segment, particularly within our Corporate Travel segment, including our Meetings, Incentives, Conferences and Exhibitions business, which is our MICE business. The robust growth in our Corporate Travel business underscores our ability to capture the rising demand for corporate travels and event management services, further solidifying our market presence. Our Corporate Travel segment continued to demonstrate strength showing significant growth across all major metrics. In the third quarter of FY '25, we onboarded a record 50 new corporate clients collectively adding an annual billing potential of INR 2.8 billion, which is approximately $32.2 million, reinforcing our leadership in the corporate travel space. This not only expanded our corporate client portfolio, but also provided us access to some clients in new industries, which allows us to then build on that to go deeper into those market segments. The integration of Globe, which is the company that we acquired in September 2024 is progressing ahead of schedule. The acquisition continues to generate positive synergies contributing to our profitability and strengthening our supplier relationships. Our Hotels and Packages segment saw robust year-over-year adjusted margin increase of 65.8%, with hotel gross bookings up 83%. The growth was driven by our strategic focus on cross-selling stand-alone hotels to our existing corporate client base and growth in the new MICE business. Additionally, we saw improved conversion rates in our hotel business due to enhanced platform features, better…

Thank you, Dhruv. Good morning, everybody. Thank you for joining us today. I'm pleased to take you through Yatra's financial performance for the third quarter fiscal year 2025. For Q3 FY '25, our gross bookings totaled INR 1.8 billion, which is roughly USD 211 million, reflecting a 3.4% decline year-over-year. This was primarily driven by reduced air travel volumes in the B2C segment as we strategically adjusted discounts to address intensified price competition. This was offset by a strong rebound in our Hotels and Packages segment, which grew 81% year-over-year. From a profitability standpoint, we've delivered robust results. Adjusted EBITDA reached INR 121.5 million, which is roughly USD 1.4 million, marking a substantial 173% year-over-year increase. This improvement was fueled by continued cost optimizations, a shift towards higher-margin segments and disciplined operational execution. Moving on to the segment performance. On the air ticketing side, our adjusted margin came in at INR 858 million, which is roughly USD 10 million, down 23% year-over-year. The decline was attributed to a combination of lower gross bookings and a reduction in headline take rate due to a mix change. Despite the decline, we continue to leverage our B2B business and corporate travel solutions to stabilize margins in this segment. On the Hotels and Packages, adjusted margins surged to INR 438 million, which is USD 5.1 million, an increase of 66% year-over-year. This growth was largely driven by the expansion of our MICE segment as well as improved cross-selling initiatives, which have strengthened customer engagement and increased our wallet share per travel. Moving on to Expenses. Marketing and sales promotion costs declined by 32% year-over-year. This reduction was a result of optimized spending in our B2C segment. Personnel expenses, including ESOP cost, increased by 34% year-over-year. This was primarily due to the full quarter impact of the recently acquired entity Globe as well as the annual appraisal cycle. Further, we continue to invest in MICE and expense management teams in line with our overall strategic focus. Other operating expenses saw a 9% increase year-over-year. This was primarily due to the business combination impact and the full quarter effect of acquisition of Globe. Looking at liquidity. As of 31st December 2024, our cash and term deposits totaled INR 1.89 billion, which is roughly USD 22 million, maintaining a very strong liquidity position. Our gross rate was down to INR 33 million, which is a shade below $0.5 million, reflecting a significant reduction from prior levels. With this, I'd like to hand over the call back to the moderator to open up for Q&A. Thank you.

[Operator Instructions] Our first question comes from Scott Buck with H.C. Wainwright.

Dhruv, I'm curious, given the momentum you're seeing in MICE, can you give us an indication or some color around how large that market is? Just trying to understand how long this kind of positive momentum can continue?

MICE in India is a highly fragmented market, Scott. Firstly, good morning to you. MICE in India is a highly fragmented market. And if I look at from an organized sector point of view, the organized sector barely accounts for about 15% of the overall MICE business. The overall MICE business in India is expected to be close to about between $8 billion to $10 billion on an annualized basis. So it's highly fragmented, offers a tremendous amount of opportunity for long-term growth as we move forward. We are just at the moment, from an organized sector point of view, just dipping our toes literally in the ocean.

Great. That's helpful. And then can you remind us how long it takes to ramp a corporate client relationship once they're onboarded? I forget, do you get 100% of their business on day 1? Or does that take some time?

So in that regard, I would qualify that answer into 2 parts or categorize that answer into 2 parts. For accounts which are typically more than about $5 million per year, these kinds of companies will go live in a phased manner. They will typically take maybe one division or one location live and from there, then do a ramp-up, right? So that kind of a scenario will take anywhere between 6 to 9 months to get to the appropriate run rate of our share of wallet. In terms of accounts, which are less than $5 million and more so in that $2 million to $4 million kind of range, these accounts will go live within a 3- to 6-month period.

Okay. Perfect. And then can you tell us what Global India's revenue contribution was during the quarter?

So while we don't call that out separately, just to give you a baseline. Globe's revenue and revenue less service costs, more importantly, last year was approximately about $5.4 million or $5.3 million [indiscernible] last year in terms of revenue less service costs.

Okay. I appreciate that. And then last one for me. Any update on time line on the work the Board is doing on potential legal structure? And just kind of curious when we could potentially see a resolution, if any?

So, we are working with appropriate council in different jurisdictions. We've made, I would consider meaningful progress over the last 3 months as part of the efforts that we've undertaken. And I'm hopeful that at some point in the relatively near future, we can come back with something more concrete.

[Operator Instructions] There are currently no more questions. I will hand back over to Manish for any closing remarks.

Thank you, everyone, for joining the call today. As always, we are available for follow-ups, please feel free to reach out for the same. Thank you.

Thank you very much, Manish, and thank you, Dhruv and Rohan for being today's speakers. That concludes our conference call. We appreciate everyone for joining us today. You may now disconnect your lines.

Thank you.