Q1 2027 Tbo Tek Ltd Earnings Call Transcript
Key Points
- TBO Tek Ltd (NSE:TBOTEK) delivered both top-line and bottom-line growth despite a very tough quarter due to Middle East disruptions, demonstrating business resilience.
- The company's diversified source market strategy helped cushion the impact, with Europe delivering 24% year-on-year growth and the Middle East remaining flat in constant currency.
- Operating leverage was clearly visible, with EBITDA margins growing significantly faster than gross profit or revenue margins, even on moderate top-line growth.
- The acquisition of Classic Vacations was timely, providing a strong entry into the more resilient North America-Europe travel corridor, which now accounts for nearly a quarter of hotel GTV.
- The company is making progress on integrating Classic Vacations, with platform integration expected by the end of the calendar year, which should unlock further cross-selling opportunities.
- The Middle East crisis created severe travel disruptions, making it the toughest quarter for the company in the last two years and creating an extremely fluid and unpredictable situation.
- The company had to selectively drop margins in some regions to win business during the crisis, leading to a slightly lower take rate for the quarter.
- The integration of Classic Vacations is still in progress, and it will be several quarters before the business can deliver enterprise-level growth on its own.
- Currency depreciation created an 11% gap in hotel GTV when comparing INR to constant currency, complicating financial reporting and analysis.
- The timing of a return to normal growth in the Middle East is highly uncertain, making it difficult to predict when the company can fully benefit from its prior investments in the region.
Mr. Shresh Mahajan, Associate Director, Investor Relations marks on the management, followed by a Q&A session. Please note that certain statements made during this call may be forward-looking in nature, such forward-looking statements are subject to risks and uncertainties that could cause the actual results of projections to differ materially from those statements, Tbo Tek will hold no responsibility for any such actions taken based on such statements and undertakes no obligations to publicly update these forward-looking statements. I will now hand over the call to Mr. Gaurav Bhatnagar for his opening remarks. Thank you, and over to you, sir.
Thank you, Ashley, and, good evening, everyone.
Thank you, Ashvi, and good evening, everyone. Welcome to our Q1 earnings call. We had uploaded our shareholder letter on our website yesterday, and I hope all of you had a chance to go through it. Before we jump into Q&A
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