In the 2024 Union Budget, Finance Minister Nirmala Sitharaman presented plans to bolster the tourism sector, leading to a rise in travel and tourism stocks.
Allocations to Tourism sector
In the Budget, the Finance Minister allocated Rs.2,449.62 crore to the tourism sector, a 44.7% increase compared to the revised figure for the current fiscal.
This is a positive shift from the 2023 Union Budget, where the initial allocation for the tourism ministry was Rs.2,400 crore and later revised to Rs.1,692.10 crore.
Few Tourism stocks benefited
1. Easy Trip Planners Ltd. (Ease My Trip)
The share price of this small cap travel company offering a comprehensive range of travel related products and services, reached a high of Rs.43.6 from previous close of Rs.40.05. The stock gained around 9 percent benefitting from the allocations in the Budget.
In the quarter ending March FY24, Easy Trip Planners Ltd. reported a 2.02 percent increase in revenue to Rs.164.04 crore compared to Rs.160.78 crore in the quarter ending December FY24.
On a quarter on quarter basis, the company reported a net loss of Rs.15.07 crore in Q4 FY24, compared to a profit of Rs.45.6 crore in Q3 FY24.
2. Yatra Online Ltd.
Yatra Online Ltd. provides information, pricing, availability, and booking facilities for domestic and international customers.The share price of the company surged up by nearly 5% to an intra-day high of Rs.127.35 from its previous close of Rs.121.40.
Yatra Online Ltd. experienced a 2.5 percent quarter-on-quarter decline in revenue, amounting to Rs.107.6 crore in Q4 FY24, down from Rs.110.34 crore in Q3 FY24.
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However, the company’s net profit showed a significant increase of over 426 percent, reaching Rs.5.5 crore in the quarter ending March 2024, up from Rs.1.05 crore in the quarter ending December 2023.
3. East India Hotels Ltd. (EIH Ltd.)
At around 11.15 am, after the commencement of the Budget speech, the share price of EIH Ltd. reached a high of Rs.408.2 from previous close of Rs.400.2 gaining more than 2 percent. EIH Ltd. is primarily engaged in owning and managing premium luxury hotels and cruisers under the luxury Oberoi, Trident and Maidens brands.
During the quarters ending March FY24 and December FY24, EIH Ltd. maintained stable revenue around Rs.741 crore. The company’s net profit for Q4 FY24 increased by 7.67 percent to Rs.247.59 crore compared to Rs.229.94 crore in Q3 FY24.
Special Focus on Bihar and Odisha
During her Budget speech, the Finance Minister outlined proposals for the construction of the Vishnupad temple in Gaya and the Mahabodhi temple in Bodhgaya, inspired by the Kashi Vishwanath corridor initiative.
Furthermore, initiatives will be undertaken to conserve the hot springs in Rajgir and foster the development of Nalanda. The Budget also includes provisions to support the enhancement of temples, scenic locales, natural landscapes, and pristine beaches in Odisha.
Key Highlights
There is a special emphasis on promoting spiritual and religious tourism throughout India, encompassing the development of prominent temples and pilgrimage sites aimed at attracting increased visitor traffic.
A streamlined tax framework for international cruise companies operating domestic cruise vessels in India.
The proposed measures are anticipated to enhance the travel and tourism sector significantly, generating substantial employment opportunities and stimulating investments. This is expected to bring about a notable economic uplift in the respective regions.
Written by – Siddesh S Raskar
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