Categories: Travel

MakeMyTrip reports strong financial performance in Q2 FY24 despite seasonal challenges, ET TravelWorld

MakeMyTrip Limited, India’s leading travel service provider, has released its unaudited financial and operating results for the fiscal second quarter ending September 30, 2023. Despite seasonal challenges, the company has reported robust year-on-year revenue and profitability growth, driven by strong travel demand across various categories.

The company recorded Gross Bookings of USD 1.839.7 million in Q2 FY24, a substantial increase of 23.8 per cent in constant currency compared to USD 1,514.7 million in the same period last year (Q2 FY23). According to IFRS (International Financial Reporting Standards), the company reported revenue of USD 168.7 million in Q2 FY24, reflecting a remarkable 32.8 per cent year-on-year growth compared to USD 131.3 million in Q2 FY23.

Segment-wise performance:
MakeMyTrip‘s various segments contributed significantly to its strong financial performance. The Air Ticketing segment reported revenue of USD 80.3 million, while Hotels and Packages generated USD 75.7 million. Bus Ticketing recorded USD 21.8 million, and other services contributed USD 11 million in revenue.

Profit and margin:
The company’s EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for Q2 FY24 stood at USD 13.5 million, compared to USD 10.7 million in Q2 FY23. Remarkably, MakeMyTrip reported a profit of USD 2.0 million during this period, in contrast to a loss of USD 6.8 million in Q2 FY23.

The first half of the fiscal year (H1) for IHCL was equally impressive, as it continued to deliver exceptional results. The revenue for this period reached INR 2,997 crores, demonstrating a substantial 17 per cent YoY increase. The EBITDA registered at INR 862 crores, reflecting a notable 19 per cent YoY growth, along with an expansion of 0.4 basis points in the EBITDA margin. The Profit After Tax (PAT) for H1 reached INR 389 Crores, marking a remarkable 34 per cent YoY growth.

Expansion and acquisitions:
MakeMyTrip continues to enhance its service offerings and expand its presence in the market. On October 31, 2023, its wholly-owned subsidiary, MakeMyTrip (India) entered into an agreement to acquire a majority interest in Savaari Car Rentals, a renowned provider of inter-city car rental services in India. This strategic acquisition is set to be finalised by December 31, 2023, and is expected to bolster MakeMyTrip’s footprint in the inter-city car rental market within India.Commenting on these impressive results, Rajesh Magow, Group Chief Executive Officer, MakeMyTrip, stated, “Despite the seasonal challenges typically associated with the second quarter of the fiscal year, we are delighted to report strong year-on-year revenue growth and an expansion in Adjusted Operating Profit. Our ability to deliver innovative travel solutions, our brand strength, and our commitment to delivering superior value to our customers and partners continue to drive our profitable growth.”

The travel demand in various categories remained robust, with both Gross Bookings and profitability experiencing notable growth in this quarter, highlighting MakeMyTrip’s resilience and its ability to thrive even during seasonally challenging periods.