Online travel agent (OTA) MakeMyTrip has recorded a 69% month-on-month growth in its revenue in its second quarter of the financial year 2021, which amounts to $21 Mn. Compared to last year, the company’s revenues have dropped by 82% from $117 Mn recorded in the Q3 FY2020. Its losses have also increased by 41% from $36 Mn to $21 Mn in the same time period.
In its recently released financial statement, the company highlighted that there was a 77% drop in revenue from air ticketings, 91% drop in hotels and packages, 85% drop in bus ticketing and 71% fall in other revenues. Yet, the company’s operating losses have reduced by 16% from $31.8 Mn to $26 Mn.
MakeMyTrip had recorded $6.4 Mn in revenue last quarter, representing 95.5% annual fall. For the first of FY2021, the company had recorded a revenue of $27.4 Mn, which represented a drop of 89% compared to $259.6 Mn registered in the same period last fiscal year. The company’s operating losses have also reduced by 18% from $74.7 Mn to $60 Mn, while losses have reduced by 29% from $79.3 Mn to $55.7 Mn.
The company’s financial performance has been impacted by Covid-19 and resultant travel restrictions. However, the company may be able to recover a bit in this quarter as people are deciding to travel after being stuck inside the home since March 2020. Besides, the Indian government had barred all domestic and international flights between March 24 to May 22, 2020, which hit aviation companies and online ticketing companies.
“Our results for the 2Q21 have continued to be significantly and negatively impacted by the Covid-19 pandemic and the resulting economic conditions. However, since nationwide government-imposed lockdown orders had been slowly lifted in late May, we had seen a gradual recovery in travel demand, with sequential month on month improvements across all our lines of business,” the company said in its financial statement.
The company had laid off nearly 350 employees, company’s founder Kalra and CEO Rajesh Magow had told the employees in a letter. The internal email, shared with Inc42, told employees that over the past two months, Make My Trip has analysed impact closely and have spent considerable time thinking about the path to business recovery.
In terms of yearly performance, the company had recorded revenue of $511.52 Mn in FY20, a YoY of 5.3% from $486.11 Mn in FY19. The company’s loss for the year has grown nearly 3x from $167.83 Mn in FY19 to $447.57 Mn in FY20. The company’s gross bookings have grown 11.9% YoY from $5.44 Bn to $6.09 Bn.