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MAKEMYTRIP LIMITED

(MMYT)
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Makemytrip : Announces Fiscal 2022 First Quarter Financial & Operating Results

07/27/2021 | 07:00am EDT

MAKEMYTRIP LIMITED ANNOUNCES FISCAL 2022 FIRST QUARTER RESULTS

Financial Highlights for Fiscal 2022 First Quarter

  • Gross Bookings in 1Q22 reached $286.7 million versus $64.5 million in 1Q21.
  • Revenue was $32.8 million for 1Q22 versus $6.4 million for 1Q21.
  • Air Ticketing Revenue improved to $14.7 million in 1Q22 versus $3.8 million in 1Q21. Adjusted Margin(2) for Air Ticketing increased to $19.2 million in 1Q22 versus $4.1 million in 1Q21.
  • Hotels and Packages Revenue improved to $11.4 million in 1Q22 versus $1.1 million in 1Q21. Adjusted Margin(2) for Hotels and Packages increased to $12.3 million in 1Q22 versus $1.2 million in 1Q21.
  • Bus Ticketing Revenue improved to $4.2 million in 1Q22 versus $0.3 million in 1Q21. Adjusted Margin(2) for Bus Ticketing increased to $3.9 million in 1Q22 versus $0.3 million in 1Q21.
  • Other Revenue improved to $2.5 million in 1Q22 versus $1.1 million in 1Q21. Adjusted Margin(2) for Others increased to $2.5 million in 1Q22 versus $1.1 million in 1Q21.
  • Results from Operating Activities was a loss of $19.5 million in 1Q22 versus a loss of $34.6 million in 1Q21, reflecting an improvement of $15.1 million YoY.
  • Adjusted Operating Loss(2) was $8.6 million in 1Q22 versus Adjusted Operating Loss(2) of $21.3 million in 1Q21, reflecting an improvement of $12.7 million YoY.

Gurugram, India and New York, July 27, 2021 - MakeMyTrip Limited (NASDAQ: MMYT), India's leading online travel company, today announced its unaudited interim financial and operating results for its fiscal first quarter ended June 30, 2021.

"MakeMyTrip continued to show resilience in navigating its way through the highly challenging environment impacted by the second wave of COVID-19 that hit India during this reported quarter. It remains well positioned to be stronger following the pandemic with its more efficient cost structure, strong balance sheet and long term investments." said Deep Kalra, Group Executive Chairman. "While we remain cautiously optimistic due to the gradual recovery of travel demand in June 2021, we continued to leverage our highly variable and more efficient fixed cost structure throughout the quarter ended June 30, 2021 to minimize operating losses, while maintaining our leading position in the travel market in India."

Impact of the COVID-19 Pandemic

The impact of the global COVID-19 pandemic has severely impacted travel demand in terms of affecting consumers' sentiment and their willingness to travel, which has caused airlines and hotels in India and around the world to operate at significantly reduced service levels throughout much of calendar year 2020 and the first six months of calendar year 2021. The COVID-19 pandemic also resulted in significant weakness in the macroeconomic environment and heightened volatility in financial markets. Although our business started to recover gradually following India's nationwide lockdown from the last week of March 2020 and most of May 2020, India witnessed a rapid resurgence of daily recorded case counts towards the end of the fourth quarter of fiscal year 2021, resulting in a second wave of COVID-19. The resulting economic conditions caused by the lockdowns and travel restriction orders imposed by several state governments in India from April 2021, some of which are still ongoing, resulted in a significant negative impact on revenue for all our reportable segments in the quarter ended June 30, 2021. We focused on optimizing our costs by leveraging our highly variable and more efficient fixed cost structure during the quarter ended June 30, 2021.

The extent of the effects of the COVID-19 pandemic on our business, results of operations, cash flows and growth prospects remain uncertain and would be dependent on future developments. These include, but are not limited to, the severity, extent and duration of the pandemic, its impact on the travel industries and consumer spending, rates of vaccination and the effectiveness of vaccinations against various mutations or variants of the COVID-19 pandemic. While many countries have begun the process of vaccinating their residents against COVID-19 pandemic, the large scale and challenging logistics of distributing the vaccines, efficacy of the vaccines against new mutations or variants of the virus and other factors may contribute to delays in economic recovery.

Fiscal 2022 First Quarter Financial Results

Revenue. We generated revenue of $32.8 million in the quarter ended June 30, 2021, an increase of 416.2% (404.4% in constant currency(1)) over revenue of $6.4 million in the quarter ended June 30, 2020, primarily as a result of an increase of 291.7% (282.7% in constant currency) in our Revenue - air ticketing, an increase of 914.6% (891.4% in constant currency) in our Revenue - hotels and packages, an increase of 1141.7% (1116.4% in constant currency) in our Revenue-bus ticketing, and an increase of 122.6% (116.9% in constant currency) in our Revenue - others, each as further described below. The increase in revenue was primarily due to the recovery in domestic travel demand attributable to the comparatively lighter travel restrictions imposed by certain state governments due to the second wave of COVID-19 in India in the quarter ended June 30, 2021, which were less extensive compared to the nationwide lockdown that was in effect in India for most of the quarter ended June 30, 2020.

The table below summarizes our segment profitability in terms of revenue and Adjusted Margin in each segment. For more information, see "Information About Reportable Segments" in our condensed consolidated interim financial statements included elsewhere in this release. Also see "About Key Performance Indicators and Non-IFRS Measures" elsewhere in this release.

For the three months ended June 30

Air ticketing

Hotels and packages

Bus ticketing

Others*

2020

2021

2020

2021

2020

2021

2020

2021

(Amounts in USD thousands)

Revenue as per IFRS

3,756

14,711

1,121

11,374

338

4,197

1,146

2,551

Add: Customer inducement costs

recorded as a reduction of revenue

309

4,519

332

2,846

12

116

1

16

Less: Service cost*

-

39

237

1,967

18

379

1

*

23

*

Adjusted Margin(2)

4,065

19,191

1,216

12,253

332

3,934

1,146

2,544

__________________

  • Certain loyalty program costs amounting to nil have been excluded from service cost (three months ended June 30, 2020: $0.1 million) relating to "Others".

Air Ticketing. Revenue from our air ticketing business increased by 291.7% (282.7% in constant currency) to $14.7 million in the quarter ended June 30, 2021 from $3.8 million in the quarter ended June 30, 2020. Adjusted Margin from our air ticketing business increased by 372.1% (361.4% in constant currency) to $19.2 million in the quarter ended June 30, 2021, from $4.1

million in the quarter ended June 30, 2020. Adjusted Margin - air ticketing includes customer inducement costs of $4.5 million in the quarter ended June 30, 2021 and $0.3 million in the quarter ended June 30, 2020, recorded as a reduction of revenue. These customer inducement costs added back to Adjusted Margin are intended to reflect the way we view our ongoing business. Under IFRS, these customer inducement costs are required to be recorded as a reduction of revenue. The increase in Revenue - air ticketing and Adjusted Margin-air ticketing was due to an increase in gross bookings of 228.0% (220.5% in constant currency) primarily driven by a 181.2% increase in the number of air ticketing flight segments year over year, primarily due to the recovery in domestic travel demand attributable to the comparatively lighter travel restrictions imposed by certain state governments due to the second wave of COVID-19 in India in the quarter ended June 30, 2021, which were less extensive compared to the nationwide lockdown that was in effect in India for most of the quarter ended June 30, 2020. Further, our Adjusted Margin % (defined as Adjusted Margin as a percentage of gross bookings) was 10.7% in the quarter ended June 30, 2021 compared to 7.4% in the quarter ended June 30, 2020. The increase in Adjusted Margin % was due to incremental incentives from our air ticketing suppliers to drive travel growth in the quarter ended June 30, 2021.

Hotels and Packages. Revenue from our hotels and packages business increased by 914.6% (891.4% in constant currency) to $11.4 million in the quarter ended June 30, 2021, from $1.1 million in the quarter ended June 30, 2020. Our Adjusted Margin-hotels and packages increased by 907.6% (898.1% in constant currency) to $12.3 million in the quarter ended June 30, 2021 from $1.2 million in the quarter ended June 30, 2020. Adjusted Margin - hotels and packages includes customer inducement costs of $2.8 million in the quarter ended June 30, 2021 and $0.3 million in the quarter ended June 30, 2020, recorded as a reduction of revenue. These customer inducement costs added back to Adjusted Margin are intended to reflect the way we view our ongoing business. Under IFRS, these customer inducement costs are required to be recorded as a reduction of revenue. The increase in Revenue - hotels and packages and Adjusted Margin-hotels and packages was due to an increase in gross bookings by 964.7% (940.3% in constant currency) primarily driven by a 999.2% increase in the number of hotel-room nights year over year, primarily due to the recovery in domestic travel demand attributable to the comparatively lighter travel restrictions imposed by certain state governments due to the second wave of COVID-19 in India in the quarter ended June 30, 2021, which were less extensive compared to the nationwide lockdown that was in effect in India for most of the quarter ended June 30, 2020. Our Adjusted Margin % in the quarter ended June 30, 2021 was 20.2% as compared to 21.3% in the quarter ended June 30, 2020.

Bus Ticketing. Revenue from our bus ticketing business increased by 1141.7% (1116.4% in constant currency) to $4.2 million in the quarter ended June 30, 2021, from $0.3 million in the quarter ended June 30, 2020. Adjusted Margin from our bus ticketing business increased by 1084.9% (1062.3% in constant currency) to $3.9 million in the quarter ended June 30, 2021 from $0.3 million in the quarter ended June 30, 2020. Adjusted Margin - bus ticketing includes customer inducement costs of $0.1 million in the quarter ended June 30, 2021 and $0.01 million in the quarter ended June 30, 2020, recorded as a reduction of revenue. These customer inducement costs added back to Adjusted Margin are intended to reflect the way we view our ongoing business. Under IFRS, these customer inducement costs are required to be recorded as a reduction of revenue. The increase in Revenue - bus ticketing and Adjusted Margin-bus ticketing was due to an increase in gross bookings by 1088.9% (1061.9% in constant currency) driven by 867.3% increase in the number of bus tickets travelled year over year, primarily due to the recovery in domestic travel demand attributable to the comparatively lighter travel restrictions imposed by certain state governments due to the second wave of COVID-19 in India in the quarter ended June 30, 2021, which were less extensive compared to the nationwide lockdown that was in effect in India for most of the quarter ended June 30, 2020. Our Adjusted Margin % remained at 8.6% in both quarter ended June 30, 2021 and June 30, 2020.

Other Revenue. Other revenue increased by 122.6% (116.9% in constant currency) to $2.5 million in the quarter ended June 30, 2021, from $1.1 million in the quarter ended June 30, 2020. Our Adjusted Margin - others has increased to $2.5 million in the quarter ended June 30, 2021 from $1.1 million in the quarter ended June 30, 2020. The increase in Revenue - others and Adjusted Margin - others was primarily due to higher brand alliance income, advertisement income and other ancillary revenues in the quarter ended June 30, 2021 due to the recovery in domestic travel demand attributable to the comparatively lighter travel restrictions imposed by certain state governments due to the second wave of COVID-19 in India in the quarter ended June 30, 2021, which were less extensive compared to the nationwide lockdown that was in effect in India for most of the quarter ended June 30, 2020. Adjusted Margin - others includes customer inducement costs of $0.02 million in the quarter ended June 30, 2021 and $0.001 million in the quarter ended June 30, 2020, recorded as a reduction of revenue. These customer inducement costs added back to Adjusted Margin are intended to reflect the way we view our ongoing business. Under IFRS, these customer inducement costs are required to be recorded as a reduction of revenue.

Other Income. Other income decreased to $0.3 million in the quarter ended June 30, 2021, from $1.4 million in the quarter ended June 30, 2020. This was primarily due to the higher rent waivers related to our leasehold premises due to the COVID- 19 pandemic in the quarter ended June 30, 2020.

Personnel Expenses. Personnel expenses increased by 5.9% to $26.5 million in the quarter ended June 30, 2021 from $25.0 million in the quarter ended June 30, 2020. This was primarily due to annual wage increases in the quarter ended June 30, 2021, partially offset by reduction in share-based compensation costs in the quarter ended June 30, 2021.

Marketing and sales promotion expenses. Marketing and sales promotion expenses increased by 482.2% to $5.1 million in the quarter ended June 30, 2021 from $0.9 million in the quarter ended June 30, 2020. The increase in marketing and sales promotion expenses reflected the increase in variable costs and discretionary marketing and sales promotion spends such as events and brand building due to the recovery in domestic travel demand attributable to the comparatively lighter travel restrictions imposed by certain state governments due to the second wave of COVID-19 in India in the quarter ended June 30, 2021, which were less extensive compared to the nationwide lockdown that was in effect in India for most of the quarter ended June 30, 2020. During the quarter ended June 30, 2021, we reduced our marketing and sales promotion expenses by nearly two thirds as compared to the quarter ended March 31, 2021, to reflect the severe impact of India's second wave of COVID-19 on travel demand and our business.

Additionally, we incurred customer inducement costs recorded as a reduction of revenue and certain loyalty program costs of $7.5 million in the quarter ended June 30, 2021 and $0.7 million in the quarter ended June 30, 2020. The details are as follows:

For the three months ended

June 30

2020

2021

(Amounts in USD thousands)

Marketing and sales promotion expenses as per IFRS

884

5,147

Customer inducement costs recorded as a reduction of revenue

654

7,497

Certain loyalty program costs related to Others revenue

78

-

Other Operating Expenses. Other operating expenses increased by 47.8% to $11.3 million in the quarter ended June 30, 2021 from $7.6 million in the quarter ended June 30, 2020, primarily due to an increase in payment gateway charges and outsourcing fees as a result of higher bookings due to the recovery in domestic travel demand attributable to the comparatively lighter travel restrictions imposed by certain state governments due to the second wave of COVID-19 in India in the quarter ended June 30, 2021, which were less extensive compared to the nationwide lockdown that was in effect in India for most of the quarter ended June 30, 2020.

Depreciation and Amortization. Our depreciation and amortization expenses were $7.4 million in the quarter ended June 30, 2021 in comparison to $8.5 million in the quarter ended June 30, 2020.

Results from Operating Activities. As a result of the foregoing factors, our results from operating activities were a loss of $19.5 million in the quarter ended June 30, 2021 as compared to a loss of $34.6 million in the quarter ended June 30, 2020. Our Adjusted Operating Loss was $8.6 million in the quarter ended June 30, 2021 as compared to an Adjusted Operating Loss of $21.3 million in the quarter ended June 30, 2020. For a description of the components and calculation of "Adjusted Operating Profit (Loss)" and a reconciliation of this non-IFRS measure to the most directly comparable IFRS measure "Results from operating activities", see - "About Key Performance Indicators and Non-IFRS Measures" elsewhere in this release.

Net Finance Cost (Income). Our net finance cost was $5.4 million in the quarter ended June 30, 2021 as compared to net finance cost of $0.1 million in the quarter ended June 30, 2020, primarily due to the interest expense on financial liabilities measured at amortized cost in the quarter ended June 30, 2021 and net foreign exchange loss in quarter ended June 30, 2021 mainly as a result of the depreciation of the Indian Rupee against the U.S. dollar as at June 30, 2021 as compared to March 31, 2021.

Loss for the period. As a result of the foregoing factors, our loss for the quarter ended June 30, 2021 was $24.5 million as compared to a loss of $34.6 million in the quarter ended June 30, 2020. Our Adjusted Net Loss was $10.2 million in the quarter ended June 30, 2021, as compared to Adjusted Net Loss of $21.1 million in the quarter ended June 30, 2020. For a description of the components and calculation of "Adjusted Net Profit (Loss)" and a reconciliation of this non-IFRS measure to the most directly comparable IFRS measure "Profit (loss) for the period", see - "About Key Performance Indicators and Non-IFRS Measures" elsewhere in this release

Diluted Loss per share. Diluted loss per share was $0.22 for the quarter ended June 30, 2021 as compared to diluted loss per share of $0.32 in the quarter ended June 30, 2020. Our Adjusted Diluted Loss per share was $0.09 in the quarter ended June 30, 2021, as compared to Adjusted Diluted Loss per share of $0.20 in the quarter ended June 30, 2020. For a description of the components and calculation of "Adjusted Diluted Earnings (Loss) per Share" and a reconciliation of this non-IFRS measure to the most directly comparable IFRS measure "diluted earnings (loss) per share", see - "About Key Performance Indicators and Non-IFRS Measures" elsewhere in this release.

Liquidity. As at June 30, 2021, the balance of cash and cash equivalents and term deposits on our balance sheet was $416.8 million. In addition, we have existing credit facilities of approximately $135.0 million, which includes a $70.0 million facility from an affiliate of our largest shareholder with the remaining amount from various commercial banks. As of June 30, 2021, these facilities remained undrawn.

Notes:

  1. Constant currency refers to our financial results assuming constant foreign exchange rates for the current fiscal period based on the rates in effect during the comparable period in the prior fiscal year.
  2. This is a non-IFRS measure. For more information, see "About Key Performance Indicators and Non-IFRS Measures" elsewhere in this release. IFRS refers to International Financial Reporting Standards as issued by the International Accounting Standards Board. In addition, reconciliations of non-IFRS measures to IFRS financial measures, and operating results are included at the end of this release.

Recent Developments Relating to Our Investments

Our equity investment in securities of an unlisted entity is classified under "Other investments" in our statement of financial position. We measure our equity investment in these unlisted securities at fair value through other comprehensive income.

Our other investments increased to $28.7 million as at June 30, 2021, from $5.5 million as at March 31, 2021. Such increase is due to a fair value change of $23.2 million on our equity investment in these unlisted securities recorded during the quarter through other comprehensive income, based on the valuation performed by an external expert engaged by us.

Share Repurchase

On November 6, 2012, our Board of Directors authorized the Company to purchase outstanding ordinary shares, par value $0.0005 per share, of the Company. On January 22, 2016, our Board of Directors authorized the Company to increase the share repurchase plan to an amount aggregating up to $150 million at a price per ordinary share not exceeding $21.50 until November 30, 2021. There were no repurchases pursuant to the share repurchase plan during the first quarter of fiscal 2022. As of June 30, 2021, we had remaining authority to repurchase up to approximately $136.0 million of our outstanding ordinary shares.

Conference Call

MakeMyTrip will host a live Zoom webinar to discuss the Company's results for the quarter ended June 30, 2021 beginning at 7:30 am EDT or 5:00 pm IST on July 27, 2021. To participate one can visit http://investors.makemytrip.com or use the following the link https://makemytrip.zoom.us/webinar/register/WN_oaxLl-6pRS6gkvGu-SJfPA to register for the live event.

Registered participants will receive a confirmation email containing the Zoom access link and alternative phone dial-in details.

This is an excerpt of the original content. To continue reading it, access the original document here.

Disclaimer

MakeMyTrip Limited published this content on 27 July 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 July 2021 10:59:05 UTC.


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Net income 2022 -15,0 M - -
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Mohit Kabra Group Chief Financial Officer
Deep Kalra Group Executive Chairman
Aditya Tim Guleri Independent Director
Jian Zhang Liang Independent Director
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