MakeMyTrip’s revenue surged 24.8% to $267.4 Mn in Q3 FY25 from $214.2 Mn in the year-ago quarter
At $121.9 Mn, the online travel aggregator raked in the highest revenue from its hotels and packages business
MakeMyTrip attributed the robust growth in its top line to high travel demand in India during the quarter
Nasdaq-listed online travel aggregator MakeMyTrip (MMT) reported a profit of $27.1 Mn in the quarter ended December 31, 2024 (Q3 FY25), up 11.8% from $24.2 Mn in the same quarter previous year.
The company’s revenue in the quarter surged 24.8% to $267.4 Mn from $214.2 Mn in the year-ago quarter. The major driver for MMT’s top line was its hotels and packages business, which raked in $121.9 Mn in Q3 FY25.
This was a jump of 24.9% YoY. The company said it witnessed a 21.9% increase in its gross hotel bookings, primarily driven by a 19.3% increase in the number of hotel-room nights in the quarter.
However, the largest increase in revenue came in the company’s bus ticketing arm. Revenue from the segment zoomed 31.3% YoY to $35 Mn in Q3 FY25. The number of bus ticket bookings in the quarter went up 22.5%, which it said led to a 21.9% increase in its gross bookings.
Meanwhile, MMT’s air ticketing business clocked a 20% YoY increase in revenue to $93.8 Mn. The company’s gross bookings increased 21.4% YoY, primarily driven by a 17.3% increase in the number of air ticketing flight segments.
In the quarter, the company also registered a 110.7% increase in the revenue it generated from its other businesses to $27.1 Mn from $12.9 Mn in the previous year quarter. The segment includes revenue registered from other travel services and marketing alliances.
MakeMyTrip attributed the robust growth in its top line to high travel demand in the country during the quarter.
“Our robust financial performance this quarter across all lines of business underscores our strong execution of strategic priorities and the resilience of the travel sector. Our disciplined approach to cost management, combined with targeted investments in technology and customer experience, has enabled us to capitalise on growing travel demand and drive profitable growth,” the company’s CFO Mohit Kabra said.
Where Did MakeMyTrip Spend?
The OTA’s total expenses grew 21.4% to $232.7 Mn from $191.6 Mn it spent in Q3 FY24.
Service Costs: The company paid a service charge of $77.4 Mn in the quarter, up 24.1% from $62.4 Mn it spent last year. It said that these expenses increased primarily due to an increase of $8.1 Mn in service cost related to its car booking business in the quarter.
Employee Expenses: MMT spent $39.7 Mn on its employees in the quarter, up 11.9% from the $35.5 Mn spent in the same quarter last year. It attributes these increases to the increments it gave its employees in Q1 FY25, which came into effect this quarter.
Marketing Expenses: The OTA spent $47.3 Mn to promote its business in the quarter, up 31.2% from the $36.1 Mn it spent in Q3 FY24. Besides spending on events and brand building activities, the company incurred “customer inducement costs”, which resulted in reduction of revenue by $80.5 Mn in the quarter as against $66 Mn in the last year’s quarter.
Other Expenses: MMT saw a 20.8% increase in its other expenses this quarter to $61.5 Mn from $50.9 Mn in the year-ago quarter. This increase came on the back of an uptick in operating expenses, including distribution costs, payment gateway charges and outsourcing expenses linked to an increase in bookings in the quarter.
It is pertinent to mention that the MMT entered a business transfer agreement with fintech major CRED to acquire its expense management platform Happay for $11.7 Mn in the quarter. The deal, which is expected to close in Q4 FY25, is a part of MMT’s bid to become the go-to platform for comprehensive corporate travel and expense management solutions.