RateGain hits new high on strong Q2 results; zooms over 100% in 7 months

Shares of RateGain Travel Technologies hit a new high of Rs 670, as they rallied 7 per cent on the BSE in Monday’s intra-day trade after the firm reported more-than-double net profit at Rs 30.04 crore in September quarter (Q2FY24), on back of strong operational performance. The company had posted profit of Rs 12.96 crore in a year ago quarter.

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The stock surpassed its previous high of Rs 649.20 touched on October 19, 2023. In past seven months, the market price of RateGain has zoomed 104 per cent from a level of Rs 329 in the BSE. The company made its stock market debut on December 17, 2021. It issued shares at price of Rs 425 per share.
 
In Q2FY24, RateGain continues to witness robust revenue growth of 88.4 per cent year-on-year (YoY) at Rs 234.72 crore and significant improvement in operating margins to 19.8 per cent for Q2FY24, up from 14.1 per cent in the same period last year. The strong earnings growth on the back of operating leverage playing out as the company continues to scaleup with a focus on sustainable growth across verticals. The margin expansion continues ahead of guidance and stands at a 15-quarter high.

RateGain said the company continues to drive growth and all-round operational performance through expansion of relationships with its marquee enterprise global customer base across the travel & hospitality space, addition of new clients and continued monetisation of key contracts wins in the past few quarters.

With travel demand beyond 2019 levels, the industry is now investing into adopting new technologies including AI to improve customer experience, drive cost efficiencies and optimize revenue, the company said.

Despite recent macro uncertainty, the management said it sees growth holding steady across the travel space but will maintain a cautiously optimistic approach keeping an eye on developments across key regions.

With continued investments into expanding its sales teams and enhancing presence in key geographies, the company has a healthy pipeline of Rs 401.06 crore and is focused to drive value for its customers.

RateGain is a global provider of AI-powered SaaS solutions for the hospitality and travel industry. The company is one of the world’s largest processors of electronic transactions, price points, and travel intent data helping revenue management, distribution, and marketing teams across hotels, airlines, meta-search companies, package providers, car rentals, travel management companies, cruises, and ferries drive better outcomes for their business.