RateGain Travel Technologies shares surged more than 7% to hit a fresh 52-week high in morning trade on Monday after the company reported a robust growth in net profit and revenue in September quarter (Q2FY24).

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The SaaS (software as a service) solutions provider reported a sharp jump of 131.5% year-on-year in profit after tax (PAT) to ₹30 crore for three months ended September 30, 2023, driven by strong travel demand. In comparison, the company had posted a PAT of ₹13 crore in the year-ago period.

The company's revenue surged 88.4% YoY to ₹234.72 crore in the second quarter of the current fiscal compared to ₹124.6 crore in the year-ago period.

Its operating profit or EBITDA ( earnings, before interest, taxes, depreciation and amortization) stood at ₹46.33 crore in the quarter under review with an EBITDA margin of 19.7%. The EBITDA was at ₹17.6 crore in the second quarter of FY 2022-23 with an EBITDA margin of 14.1%.

RateGain Travel Technologies said that revenue maximisation solutions provided by the company continue to find favour with its key clients.

Further, clients are looking to drive digitisation to acquire guests, engage and retain them and have a wallet share expansion with them.

With travel demand reaching beyond 2019 levels, the industry is now investing in adopting new technologies including artificial intelligence (AI) to improve customer experience, drive cost efficiencies, and optimize revenue, the company stated.

Moreover, the company has set a target of doubling revenue in three years (with the current financial year FY24 as a base year) and this will include organic growth of 20-25% and the balance will be inorganic.

Shares of RateGain Travel Technologies were trading 3.69% higher at ₹647.85 apiece on BSE at 9:30AM.

First Published:Oct 30, 2023 11:57 AM IST