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Easy Trip shares surged by almost 14% in early trading on Friday, November 29, 2024. The stock skyrocketed as it traded ex-date for its recently announced 1:1 bonus share issuance.
Easy Trip’s bonus issue date was revised from November 20, 2024, to November 29, 2024, in an earlier exchange filing because November 20, 2024, was a trading holiday. The board-approved October 14, 2024 decision states that Easy Trip will pay shareholders an additional equity share for each fully paid-up equity share held.
Bonus shares will be issued using ₹1,772 million from Easy Trip's available reserves of ₹3,973.96 million as of March 31, 2024. The issue will bring the company’s total share capital to ₹3,544 million, showing its strong financial position and commitment to shareholders' value.
This is the company's third bonus issuance. Previously, it issued a 1:1 bonus in February 2022 and a 3:1 bonus in November 2022.
Easy Trip stock reported strong Q2FY25 earnings, with revenue from operations up 21% YoY at ₹1,447 million. The company has delivered EBITDA of ₹423 million with a margin of 28.2% and PAT of ₹259 million with a margin of 17.3%.
Gross booking revenue (GBR) in Q2FY25 came in at ₹20,756 million, driven by a substantial increase in hotel bookings. Hotel bookings increased by 178.4% year over year to ₹2,414 million. Other bookings revenue also grew by 19.4% year over year to ₹407 million, thus underlining diversified revenue streams for the company.
The issuance of Easy Trip bonus shares underlines its sustained growth and focus on rewarding investors. Given a history of shareholder-centric moves and a robust performance in Q2FY25, the company remains a key player in the travel industry stocks.
Investors have responded positively, pushing Easy Trip's share price up significantly. Market analysts view this as a strong indicator of the company's future potential.
