Makemytrip Limited ((MMYT)) has held its Q3 earnings call. Read on for the main highlights of the call.
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The recent earnings call for MakeMyTrip Limited painted a picture of strong performance and strategic achievements. The company demonstrated significant growth in international markets, achieving record operating profits. Despite facing challenges such as domestic air supply issues and competitive pressures from airline direct bookings, MakeMyTrip’s effective strategic initiatives and execution have set a positive tone for the future.
Accelerated Year-on-Year Growth
MakeMyTrip reported an impressive 26.8% year-on-year growth in gross booking value on a constant currency basis for the quarter. This was a substantial increase compared to the 22.9% growth in the first half of the fiscal year, highlighting the company’s accelerating momentum.
Record High Adjusted Operating Profit
The company achieved an all-time quarterly high adjusted operating profit of $46 million, reflecting a remarkable 38% growth year-on-year. This record profit underscores the company’s operational efficiency and successful cost management strategies.
Strong Performance in International Market
International markets have become increasingly important for MakeMyTrip, with both international air ticketing and hotel revenues growing by over 63% year-on-year. This robust growth signifies the company’s successful expansion beyond domestic boundaries.
Expansion in Accommodation Business
The accommodation segment, which includes hotels and packages, showed a substantial 24.9% year-on-year growth in adjusted margin on a constant currency basis. This growth reflects MakeMyTrip’s effective strategies in catering to the increasing demand for accommodation services.
Growth in Bus and Rail Business
The bus ticketing business reported a 23.6% year-on-year growth in constant currency, while the rail business continued to attract new users to the platform. This growth highlights MakeMyTrip’s success in diversifying its offerings and expanding its user base.
Corporate Travel Expansion
MakeMyTrip’s corporate travel segment showed robust growth, with active corporate customer counts on myBiz increasing to over 64,000 and Quest2Travel to 493 large corporates. This expansion underscores the company’s growing appeal in the corporate travel market.
GenAI Strategy Implementation
The implementation of Myra, a GenAI-powered chatbot, is enhancing customer experience in accommodation bookings. This strategic use of advanced technology highlights MakeMyTrip’s commitment to innovation and customer satisfaction.
Domestic Air Supply Challenges
The company faced supply challenges in the domestic air market, with issues related to grounded planes due to engine problems. Despite these challenges, MakeMyTrip is focused on navigating these hurdles effectively.
Seasonal Slowdown in October
October experienced slower growth due to festival-related slowdowns, but there was a significant pick-up in November and December. This seasonal fluctuation is a normal pattern the company manages effectively.
Pressure from Airline Direct Bookings
Competitive pressure from airline direct bookings, particularly from Indigo, was a concern discussed during the call. However, it has not significantly impacted MakeMyTrip’s performance yet.
Forward-Looking Guidance
MakeMyTrip’s forward-looking guidance remains optimistic, supported by strong growth metrics. The company reported a 26.8% year-on-year increase in gross booking value and a 38% rise in adjusted operating profit. The strategic focus on emerging demand segments and leveraging GenAI technology is expected to sustain this growth trajectory.
In conclusion, MakeMyTrip Limited’s earnings call highlighted a period of robust growth and strategic successes, despite facing certain challenges. The overall sentiment from the call was positive, underpinned by record profits and strong international market performance. Moving forward, the company’s focus on technology and market expansion is likely to sustain its growth momentum.
