NASDAQ-listed online travel portal MakeMyTrip has managed to narrow its loss by almost 50% from $5.6 Mn in Q2 of FY21 to $2.8 Mn in Q2 of FY22.
The 21-year-old company saw its total revenue from operations grow by 216% from $21.4 Mn in Q2 of FY21 to $67.8 Mn in three months ended September 2021. Segment-wise, hotels and packages contributed the most in revenue in the ongoing financial year.
As per the financial statement, hotels and packages contributed $33 Mn in Q2 of FY22 as compared to $4.3 Mn the company posted in the same quarter the previous year. Air ticketing contributed $21 Mn in revenue in Q2 of FY22 as compared to $10.8 Mn in Q2 of FY 21.
The company’s total expenses dropped by 52.5% from $27.08 Mn in Q2 of FY21 to $12.8 Mn in Q2 of FY22. The company in its press statement said that the gradual lifting of travel restrictions in India as a result of increase in the number of vaccinated people, has resulted in improved results across its operating segments.
MMT further highlighted that increase in domestic travel has resulted in revenue increasing by more than 100% during the current quarter compared with the previous quarter ended June 30, 2021.
Deep Kalra who is the founder of MakeMyTrip said that as the festive season approaches the company is optimistic about the “expected ongoing recovery” of travel demand in the upcoming quarters.
The travel sector was one of the worst impacted sectors due to the ongoing pandemic. Nationwide lockdowns imposed by the government to curb the spread of the contagious virus had completely halted flight, train, bus operations for months in the country as well as across the world.
Even after the lockdowns were lifted, people still feared traveling as contracting the virus in public remained. However, the fast-paced vaccination drive by the government of India helped to allay fears among travellers.
Interestingly, MMT saw its revenue grow in Q4 2021, a time before the vaccination drive began for common people. In February 2021, MMT said it was looking to raise $200 Mn in debt through senior convertible notes. The company said it will be using the capital for business operations and employee salaries after a tough 2020.
India’s tourism sector is gradually recovering. As per a report by IBEF, India’s tourism sector is expected to grow 6.7% and will reach $488 Bn by 2029. Though domestic tourism will drive growth, international tourist arrivals in the country will be expected to touch 30.5 Mn by 2028.