MakeMyTrip Q4 Profit Falls To $29 Mn On Decline In Deferred Tax

MakeMyTrip Slips Into Red, Posts $5.7 Mn Loss In Q2

SUMMARY

The Nasdaq-listed company's $171.9 Mn profit for Q4 FY24 included a credit of $126.1 Mn on recognition of deferred tax assets and a one-time gain of $30.6 Mn

Minus the one-off gains, the company’s profits rose 92% YoY

While Q4’s revenue rose 21% YoY to $245.5 Mn, it dipped 8% on a sequential basis

Online travel aggregator (OTA) MakeMyTrip reported a net profit of $29.2 Mn in Q4 FY25, marking an 83% decline from $171.9 Mn in the year-ago quarter.

It is important to note that the Nasdaq-listed company’s profit for Q4 FY24 included a 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.

Minus the one-off gains, the company would have reported a profit of $15.2 Mn in the year-ago quarter. With respect to this number, MakeMyTrip’s (MMT) profit surged 92% year-on-year (YoY) in Q4 FY25. On a sequential basis, profit grew 8% from $27.1 Mn.

The income tax expense benefit for MMT during the quarter under review declined to $1.7 Mn from $123.9 Mn in the year-ago quarter. In Q4 FY24, the company saw high income tax gain on account of tax losses carried forward (including unabsorbed depreciation) and other temporary differences, mainly related to share-based payments and employee benefits.

MMT’s revenue rose 21% YoY to $245.5 Mn during the quarter under review. However, it dipped 8% on a quarter-on-quarter basis from $267.4 Mn

The hotels and packages business raked in a revenue of $123.3 Mn during the quarter under review, marking a 17% YoY uptick. Meanwhile, the revenue from the bus ticketing vertical surged 41% YoY to $33.4 Mn. The air ticketing business registered a 13% revenue growth at $61.6 Mn.

Revenue from its other businesses increased 46% to $27.1 Mn during the quarter from $18.5 Mn in Q4 FY24. This revenue includes customer inducement costs of $1.3 Mn as well as other travel services offered by MMT along with marketing alliances.

Overall, the company’s gross bookings jumped 30.4% YoY to $2.5 Bn. MMT noted that the increase was primarily due to robust travel demand in India for both domestic and international outbound travel compared to the year-ago quarter.

“We delivered record gross bookings and revenue this fiscal year with robust growth and expanding margins underscoring the strength of our platform, the popularity of our brands, and the sustained momentum in both domestic and international travel demand,” MMT CEO Rajesh Magow said.

For the full fiscal year FY25, the OTA’s revenue surged 25% to $978.3 Mn from $782.5 Mn in FY24. Net profit declined 56% YoY to $95.3 Mn, primarily on account of the one-time gains mentioned above.