On January 29, 2025, LE Travenues Technology, known as Ixigo, saw its shares surge by over 12%, trading at Rs 140.71 at 1:37 PM on the NSE, despite reporting a significant drop in profits for the third quarter of FY25.
The company’s consolidated net profit for Q3FY25 fell by 49%, from Rs 30.6 crore in the same period last year to Rs 15.5 crore. This profit decline has raised concerns, yet Ixigo’s revenue growth helped boost market confidence. Ixigo posted a 42% increase in revenue, reaching Rs 241.7 crore for the quarter, compared to Rs 170.5 crore in Q3FY24.
The sharp rise in share prices signals investor optimism, which appears driven by the company’s strong revenue growth and improved operational efficiency. Ixigo’s profit before taxes (PBT) saw a notable 41.8% year-on-year increase, rising to Rs 21.46 crore from Rs 13.91 crore, aided by a lower deferred tax expense of Rs 5.90 crore.
Despite the profit drop, Ixigo’s profit before sharing of loss from associates, taxes, and exceptional items jumped 46%, reaching Rs 23.31 crore from Rs 15.99 crore in the previous year. Standalone results also showed impressive growth in net sales, with a 41.16% increase to Rs 240.81 crore, although standalone net profit dropped 48.23% to Rs 17.36 crore.
The market’s reaction points to a positive outlook for Ixigo’s future, with investors focusing on the company’s impressive revenue trajectory, operational improvements, and its position in the rapidly growing travel-tech sector.
Key Takeaways:
- Ixigo shares rose 12% despite a 49% decline in Q3 profits.
- Revenue for the quarter surged 42% year-on-year, boosting investor confidence.
- Profit before taxes grew 41.8% YoY, reflecting the company’s operational strength.
- A 46% rise in profit before exceptional items, taxes, and associate losses contributed to the upbeat market sentiment.
- Standalone sales grew, though profit dropped by 48.23% YoY.
