MakeMyTrip’s Net Loss Narrows Over 18% To $45.6 Mn In FY22

Online travel aggregator (OTA) MakeMyTrip (MMT) on Wednesday reported a narrowing of its loss to $45.6 Mn in the financial year 2021-22 (FY22) from $56 Mn in FY21.

However, its revenue soared 86% to $303.9 Mn in FY22 from $163.4 Mn in FY21 as the receding impact of the pandemic led to a gradual recovery in domestic travel demand by the end of the year.

Revenue from the air ticketing business grew 55.6% to $88.7 Mn in FY22, while revenue from the hotel and packages business surged 131.4% to $157.3 Mn.

The company’s adjusted operating profit increased to $23.2 Mn in FY22 as against an adjusted operating loss of $18 Mn in FY21. Gross bookings also surged more than 1.9X to $3.19 Bn in the financial year 2021-22, up from $1.63 Bn in FY21.

The marketing and sales expenses registered a steep increase of 124.4% from $22.7 Mn in FY21 to $51 Mn in the year ended March 2022. MakeMyTrip attributed the increase to a spike in variable costs and discretionary promotional expenditures to spur the demand affected by the pandemic.

On a quarterly basis, MMT reported a loss of $4.1 Mn in the January-March quarter of FY22 as against a profit of $3.2 Mn in the year-ago quarter. Adjusted net profit declined to $8.7 Mn in the quarter from $12.1 Mn in the same quarter of the previous year.

MMT generated revenue of $88.6 Mn in the March quarter, up 11.8% from $79.2 Mn during the same period of the previous year. The growth was led by a strong performance by hotels and bus ticketing verticals. Revenue from hotels and packages increased 18.8% year-on-year (YoY) to $42.3 Mn in Q4 FY22.

Revenue from the air ticketing business rose marginally by 4.6% to $25.2 Mn in the quarter ended March 2022. The bus ticketing vertical increased its revenue by 7% to $12.6 Mn during the quarter.

Employee costs in the quarter ended March 2022 increased 5.4% to $30.3 Mn, while marketing costs also grew marginally by 2.5% to $12.1 Mn in Q4 FY22.

Gross booking registered a spike, growing from $759K in the fourth quarter of 2020-21 to $1.01 Mn in the quarter ended March 2022.

Commenting on the results, MMT Chief Executive Officer Rajesh Magow said, “Consumer sentiment remains strong, especially for leisure travel and we hope to observe demand momentum for domestic travel by the first half of the fiscal year 2023 and international travel by the second half of the fiscal year 2023.”

MakeMyTrip is listed on the NASDAQ stock exchange and declared the financial results just before the opening bell on Wednesday. The company’s shares opened 2.90% higher at $25.91.