Mach Conferences

Mach Conferences & Events Limited reported a total revenue of INR235.75 crores for FY25, maintaining last year's level despite the absence of a significant INR80 crore event. The company successfully increased the number of events organized by 73%, from 90 in FY24 to 156 in FY25. This growth was driven by a dedicated focus on client satisfaction, operational efficiency, and market expansion, leading to the acquisition of 21 new clients during the year.

The company has strategically ventured into the B2C segment, starting with religious tourism offerings like Mahakumbh Mela and Char Dham Yatra, which resonated well with exclusive clientele. Mach is also developing a B2C travel portal to leverage its existing captive audience of approximately 1 lakh people. This platform aims to streamline travel requirements, including flights, hotels, and visas, and is powered by a partnership with TBO, a travel technology provider.

Mach Conferences approved the acquisition of a major equity stake in Travexel Events and Travel Private Limited, a company in the medical conference and travel segment with a FY25 turnover of INR1.25 crores. This acquisition aims to expand service portfolio and deepen domestic presence. Additionally, Mach has been appointed as a key distributor for Cordelia Cruises, India's premier luxury cruise line, capitalizing on the projected growth of the Indian cruise tourism industry to over US$229 million in FY25.

While revenue remained stable, the company's EBITDA for FY25 stood at INR21.95 crores, with an EBITDA margin of 9.31%, a decrease from 15.45% in the previous year. This margin compression was attributed to aggressive client acquisition strategies and a slowdown in the BFSI segment during the third and fourth quarters. Management expressed optimism about achieving 2024 profitability ratios in the current year, expecting margins to improve as new clients mature and the cost base is optimized.

In line with its commitment to shareholder returns, the Board of Directors recommended a dividend of INR1 per equity share for FY25, representing a 10% payout on the face value of INR10 per share. The company noted that with funds from its IPO, it no longer incurs interest costs, contributing to improved financial health. However, an INR50 crore loan to the newly acquired subsidiary, Travexel, which had only INR1.25 crores in FY25 revenue, raised analyst concerns, prompting management to commit to amending the loan structure.

Mach Conferences is transforming into a full-service online travel agency (OTA) and aims for a 25% CAGR over the next three years. Key growth drivers include strengthening premium MICE offerings, expanding into high-growth verticals like the corporate travel desk, and leveraging strategic alliances. The company is confident in its ability to accelerate growth by diversifying its client base and innovating its service offerings, despite initial challenges in B2C segment penetration.