MakeMyTrip Limited reported a significant surge in financial performance for FY2024, ending the year with record-high gross bookings and profits. The fourth quarter showed a remarkable 38.1% year-over-year revenue increase, despite being a traditionally slow season for leisure travel. The company’s strategic focus on offering a wide range of travel services and personalized experiences has been credited for the strong growth, with profits for the quarter including substantial one-time gains.
India’s leading online travel company, has reported a significant financial upturn in fiscal year 2024, with gross bookings reaching an all-time high of $8 billion and an adjusted operating profit of $124 million, a substantial increase from $70 million the previous year.
The company’s expansion has been fueled by diversification in demand segments and personalized travel offerings, alongside a strategic focus on sustainable tourism in collaboration with state governments. The earnings call also highlighted the company’s robust performance across various transportation sectors, international expansion plans, and a commitment to innovation and customer experience.
Key Takeaways
- MakeMyTrip achieved a record gross booking value of $8 billion in FY24.
- Adjusted operating profit soared to $124 million from $70 million in the previous year.
- International air ticketing business grew by 33%, while the recommendation business observed a 41% growth in adjusted margin.
- Gross bookings for air ticketing, hotels and packages, and bus ticketing witnessed significant year-on-year growth.
- The company is focusing on sustainability, operating cost efficiencies, and exploring both organic and inorganic growth opportunities.
Company Outlook
- MakeMyTrip expects to grow at 1.5x to 2x the overall travel and tourism market growth rate in the medium term.
- The company is open to inorganic investment opportunities with no specific cap on the size of potential investments.
- International outbound travel, particularly in flights and hotels, is expected to grow due to rising income levels and visa operation improvements.
Bearish Highlights
- The domestic aviation industry has seen muted growth, leading to a strategic shift towards international air ticketing.
- Personnel expenses and ESOPs are projected to remain in the same range as previous years.
Bullish Highlights
- The company’s bus business is expanding in Southeast Asia with an aim to double its contribution in the mid-term.
- Growth in the budget hotel segment is evident, especially for hotels priced above INR 1,000.
- The international outbound travel segment is growing faster than domestic travel.
Misses
- There were no specific misses discussed during the earnings call.
Q&A Highlights
- Executives discussed the potential for share buybacks, given the company’s cash surpluses.
- The company has seen consolidation in the industry and is seeking investment opportunities in niche markets.
- MakeMyTrip has launched RedBus in Vietnam and Cambodia and is planning further international expansion.
In conclusion, MakeMyTrip’s financial year 2024 has been marked by exceptional growth and strategic advancements. The company’s focus on diversifying its offerings and enhancing the customer experience has paid off, resulting in significant profit gains and a strong market position. With a clear vision for the future, MakeMyTrip is poised to continue its trajectory of growth, capitalizing on both domestic and international travel markets.
