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01/11 11:07
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Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call summary indicates strong financial performance with record high adjusted operating profit and significant revenue growth. The Q&A section reveals confidence in achieving growth targets and improving consumer sentiment. Management's optimistic outlook on international growth and ancillary services, along with a focus on AI initiatives, suggests positive future prospects. While there are minor concerns, such as unclear buyback policy and temporary air supply issues, the overall sentiment remains positive, likely leading to a stock price increase in the short term.
Adjusted Operating Profit $47.3 million, witnessing a growth of 21% year-on-year. The growth was attributed to leveraging diversified business mix, pushing international offerings, and driving operating leverage.
International Air Ticketing Revenue Grew by over 27% year-on-year, far outpacing industry growth. This was driven by increasing market share and growing online booking behavior.
International Hotels Revenue Grew by over 45% year-on-year. The growth was supported by expanding international hotel supply and direct contracting strategy.
Revenue (as per IFRS) $268.8 million, grew by 7.8% year-on-year in constant currency. Growth was impacted by external events such as macro challenges.
Profit for the Quarter $25.8 million, registering 22.6% year-on-year growth. This was due to disciplined financial management and operational agility.
Air Ticketing Adjusted Margin $97 million, registering a growth of 11.5% year-on-year in constant currency. Take rates were in line at 6.8%.
Hotels and Packages Adjusted Margin $121.9 million, registering a growth of 16.3% year-on-year in constant currency. Growth was lower than expected due to flat holiday packages business.
Bus Ticketing Adjusted Margin $42.6 million, registering a strong year-on-year growth of over 34.1% in constant currency. Take rates were in line at 10.3%.
Ground Transport Gross Bookings $71.8 million, witnessing a growth of 31.6% year-on-year in constant currency. Growth was driven by rail intercity cabs and other ground transport services.
Ancillary Services Adjusted Margin $21.5 million, witnessing a strong growth of 47.4% year-on-year in constant currency. Growth was driven by travel insurance, forex, and other ancillary services.
Zero cancellation product for domestic flights: A new version was launched to boost user confidence and repeat usage for frequent domestic flyers.
Airport transfer booking process: Streamlined for domestic flights, allowing travelers to reserve a cab of their choice while booking flights.
International lounge offerings: Expanded to include departures from 131 international airports, enhancing preflight experience.
Dining-related content: Scaled food-related data coverage to over 21,000 properties across India, showcasing dining options and preferences.
Wildlife tourism content: Enriched content for over 2,000 properties near wildlife hotspots, driving higher engagement and conversion.
International holiday packages: Launched new packages for destinations like Jordan and Tashkent.
Homestay supply: Expanded in pilgrimage cities and business cities, with notable growth in new rooms.
Flight track cabs: Launched to ensure seamless airport-to-city rides using real-time flight data.
International air ticketing revenue: Grew by over 27% year-on-year, outpacing industry growth.
International hotels revenue: Grew by over 45% year-on-year, with international business now contributing 27% to overall revenue.
International hotel supply: Added over 2,000 directly contracted hotels across 50 cities in 20 countries.
Bus business in Malaysia: Continued growth with adjacent products like ferries and activities being added.
Adjusted operating profit: Reached $47.3 million, a 21% year-on-year growth.
Corporate travel platforms: Active corporate customer count grew significantly on both myBiz and Quest2Travel platforms.
Ground transport business: Gross bookings grew by 31.6% year-on-year, driven by rail and intercity cabs.
Customer acquisition cost: Maintained efficiency at 5.1% of gross booking value.
Repurchase of Class B shares: Completed repurchase and cancellation of 34.3 million Class B shares, reducing total shares outstanding.
Trip.com stake: Trip.com became the largest minority shareholder with 16.9% voting shares.
Domestic demand impact: Domestic demand for leisure travel was weak due to the incident in Pahalgam and a passenger airplane crash, leading to reduced bookings for domestic air travel and holiday packages.
Macroeconomic disruptions: The quarter faced macroeconomic headwinds, including geographical escalations and tragic events, which impacted overall demand.
Domestic leisure travel challenges: Domestic leisure travel faced headwinds, particularly in key destinations like Jammu & Kashmir, which saw a dip in tourist inflow due to the Pahalgam incident.
Seasonality and demand fluctuations: Demand tapered in May and June after a strong start in April, affecting overall growth.
Operational disruptions: Operational disruptions in the domestic market impacted air ticketing and holiday package demand.
Dependence on external factors: The business is vulnerable to uncontrollable external events such as geopolitical issues, natural disasters, and accidents.
Marketing and sales efficiency: Marketing and sales promotion expenses were adjusted due to tepid demand in May and June, indicating sensitivity to demand fluctuations.
Long-term growth prospects of the Indian travel sector: The company remains optimistic about the long-term growth prospects of the Indian travel sector, driven by rising disposable income, infrastructure upgrades, and a shift in consumer behavior towards increased spending on travel.
International outbound travel: International outbound travel from India is expected to grow significantly, with short-haul markets gaining traction due to better air connectivity, simplified visa processes, and rising preferences for quick getaways.
International air ticketing revenue: International air ticketing revenue grew by over 27% year-on-year in Q1 fiscal year '26, outpacing industry growth. The company expects continued growth in this segment.
International hotels revenue: International hotels revenue grew by over 45% year-on-year in Q1 fiscal year '26. The company anticipates further growth in this area.
Expansion of international hotel supply: The company is expanding its international hotel supply through direct contracting in high-demand outbound destinations, adding over 2,000 directly contracted hotels across 50 cities in 20 countries.
Emerging trends in travel: Indian consumers are increasingly prioritizing experiential travel activities, taking multiple holidays and short breaks throughout the year. Wildlife tourism and nature-based experiences are also gaining popularity.
Bus business growth: The bus business is expected to continue its growth trend, with private inventory additions and investments in new buses likely to persist in the coming quarters.
Corporate travel business: The corporate travel business is witnessing strong growth, with an increase in active corporate customer counts on both myBiz and Quest2Travel platforms.
Inorganic investment opportunities: The company plans to explore inorganic investment opportunities during the year, supported by its strong cash position of $804 million.
Share Repurchase: During the quarter, MakeMyTrip raised additional capital of approximately $3.1 billion through a primary offering of ordinary shares and 0 coupon convertible serial notes. The entire net proceeds from the offerings were used for repurchase of Class B shares. After the completion of the reported quarter on 2nd July 2025, the company completed the repurchase and cancellation of 34.3 million Class B shares. As a result of the repurchase, the total shares outstanding reduced to 95.4 million compared to 111.3 million shares outstanding as of 31st March 2025. Trip.com is now the largest minority shareholder, with approximately 16.9% voting shares in the company.
The earnings call highlights strong growth in international air ticketing and hotel revenue, positive cash flow, and a robust cash position. Despite increased marketing expenses, margins are stable, and the company is optimistic about GST benefits boosting demand. Although no stock repurchase occurred, the extended buyback program is positive. Guidance for 20% growth in adjusted margins and expansion in ancillary services are promising. While there are concerns about negative net income due to finance costs and vague management responses, the overall sentiment is positive, supported by optimistic market growth prospects and strategic initiatives.
The earnings call summary indicates strong financial performance with record high adjusted operating profit and significant revenue growth. The Q&A section reveals confidence in achieving growth targets and improving consumer sentiment. Management's optimistic outlook on international growth and ancillary services, along with a focus on AI initiatives, suggests positive future prospects. While there are minor concerns, such as unclear buyback policy and temporary air supply issues, the overall sentiment remains positive, likely leading to a stock price increase in the short term.
The earnings call highlights strong financial performance, with record high operating profits and gross booking values, alongside strategic expansion into new markets. Despite some competitive pressures and geopolitical impacts, management's optimistic guidance and focus on AI and technology investments suggest potential growth. The lack of a share buyback program is a slight drawback, but overall, the positive growth metrics and strategic initiatives indicate a likely positive stock price movement.
The company demonstrated strong financial performance with significant revenue and profit growth, despite geopolitical and supply chain challenges. The positive market sentiment is further supported by a share repurchase program and optimistic growth expectations. Management's strategy to leverage AI and maintain competitive advantage is well-received, and their focus on maintaining margins and growth trajectory aligns with investor interests. The Q&A section indicates confidence in overcoming temporary issues, and the ongoing recovery in travel sentiment is a positive sign for the near future.
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