MakeMyTrip Posts A Profit Of $5.4 Mn In Q4 FY23 On Recovery In Travel Demand

Nasdaq-listed Indian traveltech company MakeMyTrip reported a profit of $5.4 Mn during the fourth quarter ended March 31, 2023 compared to a loss of $4.1 Mn in the same quarter of the previous fiscal on the back of a strong recovery in travel demand.

The company had reported a profit of $0.2 Mn in Q3 of financial year 2022-23 (FY23).

Revenue rose 67.7% to $148.5 Mn during the March quarter of 2023 from $88.59 Mn in the corresponding quarter of previous fiscal. However, revenue declined 13% from $170.5 Mn in Q3 FY23.

The company attributed the year-on-year (YoY) increase in revenue to the strong recovery in travel demand as a result of the diminishing impact of the Covid-19 pandemic in India.

Gross bookings increased 80.7% YoY to $1,673.9 Mn in Q4 2023. Revenue from air ticketing business rose 53.5% YoY to $38.9 Mn in Q4 FY23, while hotels and packages vertical’s revenue zoomed 81.9% to $82.1 Mn during the quarter under review. Bus ticketing revenue also witnessed a rise of 49.8% to $18.9 Mn in the quarter.

MakeMyTrip’s adjusted net profit stood at $23.06 Mn during Q4 FY23 as against $8.67 Mn in the year-ago quarter.

For the financial year 2022-23, the traveltech company’s loss declined 96% to $11.2 Mn from $303.9 Mn in FY22. However, adjusted net profit rose to $52.93 Mn in FY23 from $21.69 Mn in FY22.

Revenue rose 95.1% to $593 Mn from $303.9 Mn in FY22, with gross booking rising 122% to $6,566.2 Mn in FY23.

Revenue from the air ticketing business increased 66.6% to $147.8 Mn in FY23 from $88.7 Mn in FY22, while revenue of hotels and packages vertical rose 114.7% to $337.7 Mn from $157.3 Mn in the previous fiscal year. Bus ticketing revenue grew 87.7% to $74.9 Mn in FY23 from $39.9 Mn in FY22.

“We witnessed robust recovery in travel demand with significant improvement in consumer sentiment during the fiscal year ended March 31, 2023. We capitalised on this trend to deliver strong results with over 120% YoY constant currency growth in gross bookings,” Rajesh Magow, group CEO of MakeMyTrip, said.

“Our profitability expansion has also been significant as we delivered a YoY increase of over 200% in adjusted operating profit for the reported fiscal year 2023,” he added.

MakeMyTrip competes with homegrown startups like EaseMyTrip, Yatra, and Cleartrip in the crowded online travel aggregation space.

Last year, the Competition Commission of India (CCI) levied a fine of INR 223.5 Cr on MakeMyTrip and Goibibo Group for unfair business practices.

Following this, MakeMyTrip challenged the CCI order in the National Company Law Appellate Tribunal (NCLAT), which asked it to deposit 10% of the fine imposed by the antitrust regulator. The traveltech platform moved the Delhi High Court against the NCLAT’s order. However, the court dismissed its plea.