Travel-tech brand IntrCity, parent company to SmartBus and RailYatri, has hit the milestone of a massive turn in its financial journey during fiscal year 2024 (FY24). The firm delivered revenue from operations at ₹317.34 crore; this is up by 15.9% year-on-year from ₹273.9 crore in FY23. This is slower compared to the sixfold rise in FY23, however, it does suggest IntrCity’s resilience and ability to adapt to the cutthroat market.
PC: The Financial Express
While the growth rate is slower, the overall performance of IntrCity depicts a positive trend. The company was able to decrease its losses by more than 52%, which came down to ₹9.9 crore in FY24 as compared to ₹21.4 crore in FY23. This significant reduction in loss indicates that the strategies undertaken by IntrCity are effectively controlling costs while maintaining growth in revenues.
The revenue breakup shows that an immense 93.8% of the company’s revenue is being generated from its bus services, which increased by a whooping 16.9% to ₹297.71 crore. Other income includes commission ₹18.08 crore generated majorly from the sale of ticketing services provided under an agreement with IRCTC for train travel, and advertisement services ₹1.55 crore. It further reported the non-operating revenue amounting to ₹3.38 crore from interest and other gains on financial assets, taking total revenue to ₹320.7 crore.
On the expense side, IntrCity’s cost of revenue accounted for 68.3% of total expenditures, rising 14.2% to ₹225.8 crore in FY24 from ₹197.8 crore in FY23. Operational and maintenance costs increased by 9.3% to ₹43.5 crore, while employee benefits remained relatively stable at ₹36.85 crore. The company also invested ₹7.42 crore in advertisements and promotions.
The overall cost for IntrCity was at ₹330.6 crore, up by 9.7% for FY24. However, with its focused approach to managing costs, the company was able to improve its EBITDA margin by a large amount of 459 basis points to -2.08%. This is critical as it indicates a path towards achieving profitability.
Operating cash outflows for IntrCity also improved significantly, declining by 69.8% to ₹6.1 crore. With outstanding losses amounting to ₹242.5 crore, the company is working hard to bridge the gap toward break-even. As of FY24, IntrCity reported ₹17.4 crore in cash and bank balances with total assets amounting to ₹41.2 crore, positioning itself strategically for future growth.
Enhancing the user experience on the company’s web and mobile platforms—focusing on long-distance bus routes and comprehensive train travel services—is a key priority. The strategy would allow the company to seize a larger share of India’s burgeoning travel market.
The FY24 financial results reflect a company that is now poised for significant change in IntrCity. With a strong revenue stream and a clear path toward reducing losses, IntrCity is well-positioned to capitalize on the increasing demand for travel solutions in India. As the company continues to refine its operations and expand its service offerings, stakeholders will be keenly watching to see if it can achieve break-even in the near future, signaling a successful turnaround in its business trajectory.
