Online travel aggregator MakeMyTrip on Tuesday posted its fiscal first quarter profit growth of 12.9 per cent on-year at $21 million in comparison to $18.6 million recorded during the corresponding quarter of previous financial year. It posted revenue as per IFRS at $254.5 million, up 31.4 per cent in constant currency as against $196.7 million during the first quarter of FY24.
The company said that the increase in revenue was primarily as a results of an increase of 25.4 per cent (27.2 per cent in constant currency) in revenue from air ticketing business, an increase of 27.5 per cent (29.6 per cent in constant currency) in revenue from hotels and packages business, an increase of 17.2 per cent (19.3 per cent in constant currency) in revenue from bus ticketing business, and an increase of 95.2 per cent (97.2 per cent in constant currency) in revenue from others business. “The increase in revenue was primarily due to the robust travel demand in India for both domestic and international outbound travel in the quarter ended June 30, 2024 as compared to the quarter ended June 30, 2023,” MakeMyTrip said in a statement.
The company’s operating profit registered a growth of 29.9 per cent on-year at $39.1 million as against $30.1 million in Q1FY24.
MakeMyTrip delivered its highest-ever gross bookings at $2,380.4 million, recording a growth of 21.6 per cent YoY from $1,987.5 million during Q1FY24. The surge, it added, largely came on the back of broad-based growth across three verticals – air ticketing, hotel packages, and bus ticketing.
Rajesh Magow, Group Chief Executive Officer, MakeMyTrip, said, “We are pleased to see a robust start to this fiscal year. We believe that the long-term growth story of India’s travel and tourism sector is fuelled by multiple macroeconomic drivers like increasing government investments in travel infrastructure, rising disposable incomes of the middle class, and increasing propensity to travel. These drivers indicate that India’s travel and tourism industry growth is expected to be higher than the country’s GDP growth rate. We aim to continue to drive our growth by capitalising on the shift from offline to online buying and expanding our customer base and wallet share.”
MakeMyTrip’s Q1 performance across businesses
Air Ticketing: Revenue from the air ticketing business increased by 25.4 per cent to $57.5 million in Q1FY25, from $45.9 million during Q1 of previous fiscal year. The growth was primarily due to an increase in gross bookings of 15.2 per cent, primarily driven by a 14.1 per cent increase in the number of air ticketing flight segments YoY. This, it added, was aided by robust travel demand in India for both domestic and international outbound travel in the quarter ended June 30, 2024.
Hotels and Packages: Revenue from hotels and packages business rose by 27.5 per cent to $146.8 million in the quarter ended June 30, 2024, as against $115.2 million in the previous year’s first quarter. The adjusted margin for the segment increased by 25.4 per cent. MakeMyTrip said that the increase in revenue and adjusted margin was primarily due to an increase in gross bookings by 22.8 per cent, driven by a 15.6 per cent increase in the number of hotel-room nights during the first quarter.
Bus Ticketing: Revenue from bus ticketing business increased by 17.2 per cent to $29.2 million during Q1FY25 in comparison to $24.9 million during the same quarter last year. The adjusted margin for the segment increased by 18.6 per cent.This, the company said, was due to an increase in gross bookings by 14.2 per cent, driven by a 19.5 per cent increase in the number of bus tickets booked YoY.