Indian online travel company MakeMyTrip posted revenue of $32.8 Mn in the Q1 FY22, an increase of 416% from Q1 FY21, when it posted $6.4 Mn revenue. The company’s overall adjusted loss for the quarter was $8.6 Mn, compared to $21.3 Mn in the same quarter last year. Operating losses narrowed to $19.5 Mn from $38.7 Mn a year earlier.
The company said that relaxation in domestic travel by state governments helped the company’s revenue grow as compared to Q1 of FY21 when the country was under nationwide lockdown in the backdrop of the first wave of the pandemic. Overall, the company had posted a loss of $56Mn for FY21 as compared to a loss of $447.5 Mn in the previous year, as revenue declined by 68%.
As for the breakup, the company said its air ticket revenue improved to $14.7 Mn in this quarter compared to $3.8 Mn in Q1 of FY22. In case of hotels and packages revenue, MakeMyTrip generated $11.4 Mn this quarter as compared to $1.1Mn in Q1 of FY22. In case of bus ticketing revenue, the company saw $4.2 Mn in revenue in Q1 of FY22 as against $1.1 Mn in Q1 of FY21.
Among expenses, marketing and sales promotion expenses increased by 482.2% to $5.1 Mn in the quarter from $0.9 million as variable costs and discretionary marketing and sales promotion spends grew despite the second Covid wave. MMT said the spending on events and brand building was attributable to the comparatively lighter travel restrictions imposed in the second wave.
“While we remain cautiously optimistic due to the gradual recovery of travel demand in June 2021, we continued to leverage our highly variable and more efficient fixed cost structure throughout the quarter ended June 30, 2021 to minimize operating losses, while maintaining our leading position in the travel market in India,” added Deep Kalra, founder and group executive chairman of the company.
CEO Rajesh Magow said MMT saw more than 50% recovery in this quarter versus a year earlier in hotel room night bookings from small and medium businesses and anticipates 53% recovery in active corporate accounts.
Though the ongoing pandemic wreaked havoc across the sectors, the travel industry was the most severely affected despite the less stringent restrictions this year. Interestingly, MMT had seen revenue pick up in Q4 2021, before the Covid second wave resulted in a number of lockdowns across India once again from April 2021. In February 2021, MMT said it is looking to raise $200 Mn in debt through senior convertible notes. The company said it will be using the capital for business operations and employee salaries after a tough 2020.
Speaking to Inc42 last month on the recovery in the travel sector, a MakeMyTrip spokesperson had said, “Domestic travel will continue to lead recovery for the next few quarters and as more international leisure destinations begin opening up for Indian travellers – outbound travellers will pack in domestic mini-vacations in the coming months.”