Financial Year 2024-25 was not good for Rategane Travel Technologies. The growth of orderbook is dull. In some special accounts, the company had to negotiate in terms of price. The company also lost an OTA client. Even after increasing the capital, the company has not been able to merge and acquire. The company also expects this financial year (2025-26) to be sluggish. The reason for this is that the company is going to invest big to increase growth.
Rategain Travel Technologies offers Saas Solutions to travel and hospitality sector. It is the largest processor of electronic transactions, price points and travel data. This helps companies in revenue management, distribution and marketing. The company’s revenue growth was weak in the fourth quarter. It was just 1.9 percent on a year after year. It also affected the annual revenue growth, which was just 12.5 percent.
Its digital marketing business had a good hand in the company’s revenue. However, in the first half, the company suffered a client loss. However, Adara’s good performance helped the company a lot. It was acquired by the company in January 2023. The company’s distribution business was a bit weak. There was a surge in the earnings of Saas Kapanis, due to which there is a good performance on the operation front. The company’s margin remains good continuously.
In the fourth quarter, despite revenue growth being weak, there was improvement in the margin, due to which the bonus is returned, as the financial year target could not be met. Apart from this, there was a decrease in the number of employees in the fourth quarter. The reason for this is that the company is using AI. This has no longer required additional employees. The company believes that the use of technology in travel will increase, which will reduce the cost.
Performance in FY26 may be weak. However, the company’s focus remains on long term growth. The company is also increasing the focus on sales and marketing strategy. In the last six months, this stock has fallen more than 37 percent, which is a major decline. This means that the estimation of weak performance in this financial year has already affected the stocks. Here, the company has a cash reserve of Rs 1,267 crore. However, despite this, the company has not been able to acquire a big acquisition.
On June 30, the company’s stock climbed 1 per cent to close at Rs 457. This year the stock has fallen by about 37 percent. Right now there is uncertainty in the global economy, which can have negative effects on the company’s business. Apart from this, nothing can be said to be sure about the success of the strategy that the company has adopted. Therefore, such investors can invest in this stock, which can bear more risk.
