Leading SaaS solutions provider for hospitality and travel industry RateGain Travel Technologies Ltd on Friday reported strong growth in revenue and net profit for the December quarter of FY2022-23, sending its shares higher by over 3 percent.

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The company’s net profit rose multifold to Rs 13.2 crore in the third quarter of FY23 compared to 9 lakh in the year-ago period. The profit grew by 1.5 percent sequentially compared to Rs 13 crore in the September quarter.

Revenue from operations surged by 39.7 percent year-on-year to Rs 138.29 crore in the quarter under review against Rs 99 crore a year ago. On a quarterly basis, revenue grew by 10.9 percent from Rs 124.6 crore in Q2FY23.

The company’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) increased nearly 30 percent QoQ to Rs 22.9 crore in Q3FY23 from Rs 17.6 crore in the September quarter. EBITDA increased a whopping 147.5 crore YoY compared to Rs 9.26 crore in the December quarter a year ago.

Margins improved to 16.5 percent in the third quarter from 14.1 percent in Q2 FY23.

Travel industry saw healthy growth in FY23 despite the challenging global environment, helping the company report its best quarter on new contract wins of Rs 49.26 crore, RateGain stated.

It stated that Annual Recurring Revenue continues to grow at a steady pace to Rs 553.1 crore.

The company mentioned that with the opening of China, and a strong increase in outbound international travel expected from the US – the travel and hospitality industry is expected to see healthy growth which would benefit technology players like RateGain.

RateGain Travel Technologies works with more than 2600 customers and 700-plus partners in over 100 countries in the travel and hospitality industry helping them accelerate revenue generation through acquisition, retention, and wallet share expansion.

Shares of the company closed 3.48 percent higher at Rs 374.55 on BSE.

(Edited by : Anshul)