MakeMyTrip Q4: Net Profit Surges To $171.9 Mn On Tax Credit, One-Time Gain

Nasdaq-listed Indian traveltech major MakeMyTrip posted a net profit of $171.9 Mn in the March quarter (Q4) of the financial year 2023-24 (FY24) as against a profit of $5.4 Mn reported in the corresponding period of the last fiscal year.

However, the net profit for the quarter included a one-time credit of $126.1 Mn on recognition of deferred tax assets and a one-time gain of $30.6 Mn due to the change in carrying value of the company’s convertible notes due 2028, measured at amortised cost, MakeMyTrip said.

Excluding these one-time gains, MakeMyTrip’s net profit for the quarter was about $15.2 Mn. This was a decline from $24.2 Mn profit it posted in Q3 FY24. 

Meanwhile, the traveltech startup’s revenue jumped 36.6% to $202.9 Mn in Q4 FY24 from $148.5 Mn the year-ago period, largely helped by a significant momentum in its air ticketing business.

However, operating revenue declined 5.3% from $214.2 Mn in Q3 FY24.

Commenting on the financials, Rajesh Magow, group CEO at MakeMyTrip, said, “Indians are embracing the call to travel with a newfound enthusiasm with both leisure and business-related travel demand in India having crossed pre-pandemic levels.” 

He said that the startup’s strategy to serve its customers and first-time travellers through a comprehensive portfolio of travel and ancillary products with personalised experiences has helped in yielding these results. 

“It has helped us deliver strong growth in a quarter that is typically a seasonally slower period for leisure travel. We are pleased that we have bounced back stronger from the COVID-19 pandemic by posting our best-ever financial performance during fiscal year 2024 in terms of both gross bookings and profit,” Magow added.

MakeMyTrip’s gross booking stood at $2.04 Bn in Q4, up 23% year-on-year (YoY).

Meanwhile, revenue from air ticketing business increased 41.6% YoY to $55.1 Mn in the reported quarter and revenue from hotels and packages business grew 28.5% to $105.5 Mn.

Though MakeMyTrip’s air ticketing vertical saw increased revenue sequentially as well, the company’s hotels and packages business witnessed some degrowth from $125.5 Mn revenue earned in Q3 FY24.

On the other hand, revenue from bus ticketing business increased 25.7% YoY to $23.8 Mn in Q4 FY24.

On the expenditure front, MakeMyTrip’s personnel expenses increased 28.3% YoY to $43.3 Mn in the reported quarter. Marketing and sales promotion expenses also jumped 36.2% YoY to $31.6 Mn.

In the financial year 2024, MakeMyTrip’s net profit stood at $216.7 Mn on a revenue of $782.5 Mn.