MakeMyTrip Posts $18.6 Mn Profit In Q1 FY24 As Travel Demand Remains Robust

Nasdaq-listed Indian traveltech company MakeMyTrip reported its third straight profitable quarter with a profit of $18.6 Mn in the June quarter (Q1) of the financial year 2023-24 (FY24), as against a loss of $10 Mn in the corresponding quarter of last year.

The company’s profit also more than tripled from $5.4 Mn reported in the prior quarter, Q4 FY23, helped by seasonality factors.

MakeMyTrip generated a revenue of $196.7 Mn Q1 FY24, which rose 37.8% from $142.7 Mn reported in the corresponding quarter of last year.

Its revenue also grew 32.4% sequentially from $148.5 Mn it clocked in the previous quarter.

The startup’s air ticketing business revenue jumped 48.3% year-on-year (YoY) to $45.9 Mn, while hotels and packages business revenue increased 37.1% to $115.2 Mn in the quarter under review.

MakeMyTrip’s bus ticketing business revenue also grew 22.8% to $24.9 Mn in Q1.

“We have started the new financial year on a positive note, delivering our strongest-ever quarter with all-time high gross bookings and profits. Travel demand across customer segments stayed robust in a seasonally strong quarter for leisure travel,” said Rajesh Magow, group CEO of MakeMyTrip, in a statement. 

“The depth of travel-related offerings and quality customer experience that we deliver, powered by robust technology and product innovations, along with our strong brand are helping us cater to the evolving consumer preferences and stay ahead of the market,” he added.

We must note that MakeMyTrip returned in black in Q3 FY23 by posting a profit of $0.2 Mn.

The company’s gross bookings zoomed 31.4% YoY to $1,987.5 Mn in Q1 FY24 on a constant currency basis. MakeMyTrip’s gross bookings stood at $1,673.9 Mn in Q4 FY23.

On the expenses front, personnel expenses rose 5.8% to $33.8 Mn in the quarter ended June 30, 2023 from $32 Mn in the same period last year, primarily due to annual wage increases.

Meanwhile, MakeMyTrip spent $30.6 Mn towards marketing and sales promotion expenses in the quarter under review, a rise of 23.5% YoY. The company said that the increase was primarily due to a rise in variable costs and discretionary marketing and sales promotion expenditures such as expenses on events and brand-building initiatives in response to the sustained elevated travel demand in India.

MakeMyTrip’s cash and cash equivalents balance and term deposits stood at $521.8 Mn as of June 30, 2023.