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Shares of TBO Tek Ltd. ended 6% lower on Wednesday, November 13, after the company reacted to its September quarter results, that were released after market hours on Tuesday. The stock also faced poor market sentiment as the broader markets saw intense selling pressure through the day.
The company’s consolidated profit after tax (PAT) rose 7% on a year-on-year (YoY) basis to ₹60 crore in the second quarter of the current financial year, up from ₹56 crore in the same period last year.
Its consolidated revenue from operations saw double-digit growth of 28% from last year to ₹451 crore in the September-ended quarter as compared to ₹352 crore in the second quarter of the last fiscal year.
On the operating level, TBO Tek’s Earnings before Interest, Tax, Depreciation, and Amortisation (EBITDA) witnessed an uptick of 19% on a year-on-year basis to ₹82.9 crore in the July to September 2024 period as compared to ₹69.7 crore in the corresponding quarter of the previous year.
Its adjusted EBITDA margin, however, remained flat, dipping slightly to 19.9% in Q2 FY25 as opposed to 20.4% reported in the year-ago period. On a sequential basis, the figure contracted marginally from 20.3% in the June 2024 quarter.
Results for the quarter were led by a growing share in high-margin hotel and ancillary business segments. It also reported a growth of 26% in monthly transacting buyers in the international markets compared to the year-ago period.
“We have seen a strong double-digit business growth in all International source markets, in spite of global geo-political headwinds. This has been driven by the broad-based contribution from non-air businesses and helped by the company’s Tech and AI initiatives like H-Next, AI-driven pricing and Voice-Bot and integration of Jumbonline, which are in alignment with our customer expectations,” said the Co-founder and Joint MD of TBO Tek, Gaurav Bhatnagar.
On Friday, brokerage firm Jefferies initiated a ‘Buy’ call on the travel solutions provider stock, recommending a price target of ₹2,000 per share. Jefferies’ target price provides an upside of 20% from TBO Tek’s previous closing price of ₹1678.10.
Jefferies expects a compound annual growth rate (CAGR) of 20% in TBO Tek's Gross Transaction Value over the financial years 2024-2027.
The brokerage also expects the current valuations to sustain, given the strong growth outlook for the company. It is valuing TBO Tek at 55 times September 2026 Earnings Per Share (EPS) estimates.
Shares of Tbo Tek ended 5.8% lower on Wednesday at ₹1,580.
The company’s consolidated profit after tax (PAT) rose 7% on a year-on-year (YoY) basis to ₹60 crore in the second quarter of the current financial year, up from ₹56 crore in the same period last year.
Its consolidated revenue from operations saw double-digit growth of 28% from last year to ₹451 crore in the September-ended quarter as compared to ₹352 crore in the second quarter of the last fiscal year.
On the operating level, TBO Tek’s Earnings before Interest, Tax, Depreciation, and Amortisation (EBITDA) witnessed an uptick of 19% on a year-on-year basis to ₹82.9 crore in the July to September 2024 period as compared to ₹69.7 crore in the corresponding quarter of the previous year.
Its adjusted EBITDA margin, however, remained flat, dipping slightly to 19.9% in Q2 FY25 as opposed to 20.4% reported in the year-ago period. On a sequential basis, the figure contracted marginally from 20.3% in the June 2024 quarter.
Results for the quarter were led by a growing share in high-margin hotel and ancillary business segments. It also reported a growth of 26% in monthly transacting buyers in the international markets compared to the year-ago period.
“We have seen a strong double-digit business growth in all International source markets, in spite of global geo-political headwinds. This has been driven by the broad-based contribution from non-air businesses and helped by the company’s Tech and AI initiatives like H-Next, AI-driven pricing and Voice-Bot and integration of Jumbonline, which are in alignment with our customer expectations,” said the Co-founder and Joint MD of TBO Tek, Gaurav Bhatnagar.
On Friday, brokerage firm Jefferies initiated a ‘Buy’ call on the travel solutions provider stock, recommending a price target of ₹2,000 per share. Jefferies’ target price provides an upside of 20% from TBO Tek’s previous closing price of ₹1678.10.
Jefferies expects a compound annual growth rate (CAGR) of 20% in TBO Tek's Gross Transaction Value over the financial years 2024-2027.
The brokerage also expects the current valuations to sustain, given the strong growth outlook for the company. It is valuing TBO Tek at 55 times September 2026 Earnings Per Share (EPS) estimates.
Shares of Tbo Tek ended 5.8% lower on Wednesday at ₹1,580.
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