MMYT - Earnings call transcript Q3 2021

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Thank you for standing by and welcome to the MakeMyTrip Limited Fiscal 2021 Q3 Earnings Conference Call. At this time all participants are in a listen-only mode. After the speakers' presentation there will be a question-and-answer session. Please be advised that today's conference is being recorded. [Operator Instructions] I would now like to hand the conference over to your speaker today, Mr. Huang. Jonathan you. Thank ahead. Please go

Jonathan Huang

forward-looking this Polly. guarantees results call Securities subject to XXXX Welcome everyone information Limited's you, and of are to actual certain the may meaning XXXX. this materially. Safe Harbor the are relayed Reform only everyone date. These the call. I circumstances. inherent Act fiscal provision considered company call obligation earnings today's remind speaks performance, US made QX within would the statements of to Private on Thank the statements as of undertakes of future reflect on changed are MakeMyTrip statements to forward-looking differ Litigation like not that information Any And to uncertainties update of no

I'd call the XX, I'm these and Rajesh from Deep are of Relations Chairman; company's Report to on begin and available Group Additional statements Factors company's Investor section the the in with XXXX. or the August filed SEC contained are SEC our company's Founder by Risk of concerning Kabra, on Executive Copies Form Financial Annual Kalra, the to today's from and Deep Executive our Chief Officer. today Statement Group turn Mohit Co-Founder the Group Officer; Forward-Looking over and filings Magow, now information joined these Chief discussion. like to department. XX-F

Deep Kalra

call. importantly, wish I'd Thank you, a to earnings Year. Jonathan. and Welcome, New like quarter our everyone, our third healthy listeners to all fiscal happy more

in since news last being most industries have in travel ongoing as continues earnings deal seen rollout well an the impacted India. effective call, pandemic, XXXX, our as particular. is COVID-XX we which industry begin world phased has commencement the As that to the The good approved, vaccines we of and with

rates, daily gather to given is history. India's decline distribution thereafter. to recorded also its that has mid-September strong encouraged I'm in peaked optimistic see pace in mass which India's the continued it are infection stages, steadily still early we will vaccination While

normalization As of the reopen, country broadening. is activity or economic continues to unlock

been, accelerated use it social country's been conducted has as disruptive digital ecommerce greater transformed by the citizens. rapidly ever, has in plus this way pandemic has adopted will As also half a the we be than India. of With distancing commerce believe needs and billion a

three In fact, forecasting by $XXX some billion reach in ecommerce year analysts to XXXX. are transaction increase a values online x fiscal over

of structural the of we online a While as still changes recovery, such a only before travel on journey benefits booking believe of time behavior. in category accrue to start matter it's is its we also

same share ongoing presumes. which already Now of immunity with December our and will eventually the full today. on market a travel its for the destination takes the across the I'd compared recovery focus we has like cross to the gain domestic Beginning only latest recovery air, of of business primary the once the domestic our outbound discipline. year international travel industry, driving border In believe efforts when period and domestic strict cost hold ease reopening recovered meantime, countries will maintaining in keep but to capacity XX% our We focusing ago. of trends herd recovery momentum, remains travel

level steady has XX% privately of partners close More chain available key domestic network is the service to to to partners' As encouragingly, have seen our for stayed across capacity increased bus for interstate operated of as than be our a of Similarly, of far. so at resumption sold seats alternative available also and nights properties about now. bookings pre-pandemic independent also take now. to market room more and recovery the hotels nearly room XX% capacity all accommodations, is with overall available XX% bookings

ongoing the QX, we for participate time. able in turning but also to our gain have performance Now this share travel, company's market to only during recovery to in continue been not

Our the quarter efficiencies more with XX% During has of levels. than has customers a up traffic drive to enduring highly December, base, coupled repeat overall effectiveness positive allowed transacting management of three the encouragingly, made greater quarters disciplined strength. us than to retention which cash efforts to recovered pre-pandemic our and cost market's adjusted recovery, More operating brand is brands during gains to flow the also testament during our to our more of achieve

influencers travel, accommodations, cases. travel and with assure available. videos networks and protocols popular of inspire customers highlight food During and ran included other channels QX, other We marketing alternative we and hygiene short safety and leveraged use to that social to campaigns travel

value contribute our of example, the with hashtag mid-September year in and villas greater members very September, opportunity program rewards travel has refreshed goTribe Goibibo's getaways since bookings we BLACK Today launch. loyalty help directly giving take nudge the have terrific quarter. has are loyal campaigns during Similarly, like whom reconnect at premium new encourage much-needed XXX,XXX while and also members, campaign deals rewards us to roughly DriveUpGetAway helped homes. to break up brand at properties program to drivable customers travel BLACK also offering been its and a with goTribe XXX,XXX a For fans. cooped we re-launched more stressful offering our outreach greater collectively a total MakeMyTrip To MakeMyTrip third coupled and loyalty helped our members after drive and These nearby home.

team improved marketing efforts the QX. optimized further organic online marketing during also and Our

and maintaining approach traffic high has achieved than speed marketing recover the we and while market click on keyword to We faster As result, rankings optimizing a through efficiencies. share brands us continue our to organic allowed time high our across believe rates India. improving all comprehensive in

our the home forward. further financial very of positioning relative market. result and and during as to the brand remains cost I'm online year of going the unprecedented last optimistic strong our prospects, our only COVID-XX a travel as adoption peers for Looking structural believe taken to of business longer forward, mid our will large online with optimizations lockdown acceleration our I in term opportunity bolster

quarter. across recovery domestic business Now our share during more to like seen on I'd Rajesh the ask color to we've the

Rajesh Magow

Thank you, Deep Happy New Year everyone. and

XXXX hope all better a will than much Let's year XXXX. be

into steady to and on to Before see since quarters, vaccines better rates worked last would infection our shown coming on trends late and for within decline a since effective a we With us new year. industry by momentum year business recover. reflection continuing travel I the be pandemic. for we the the get MakeMyTrip's hope further emerge steady rollout gaining good brand, were the entire much increased for XXXX in as had recovery has the country's reopening on hope of all I international our encouraged achieve relentlessly wait and the see and travel trend domestic while a team our post continues to quarter, we who in recovery, now India, activities In level improving even the resilience domestic to This like operating QX, only confidence a May open and also to to September, to It's near in we of our industry. the our up. economic stronger recovery performance industry congratulate of term the goal daily

to been have and has leisure demand, Dubai safety like borders domestic of a are of recovery well, see which to reopened demand strong Maldives the destinations tourists encouraged to travel protocols. couple some as we by led much travel its international While with for

take for to longer Sri and is its outbound time present. recover. reduced like continue but We A few honoring but the We other tailwind requirements and are distribution, to also opened have provide countries Thailand offline quarantine Lanka, forward a these borders will long-term being of their they a look to forward. high expected believe travel growth since going fully at us fragmentation to given nature

online. like which over network travel fiscal quarter now would I first, share and Starting back within Now hotel highlight industry recovery, achievements of domestic quarterly deliver is with were gains operating and share XX% domestic in cost our our the positive reflects discipline, market business helped XXXX, the to the profits. of which third adjusted hotels the continued

room at near key properties booking. of to importantly, the us available all More partners for capacities are

During QX, segment. on we saw leisure up demand the pent

of total level, ending approximately across ago. the Furthermore, a deliver partners. helping at achieved more approximately we of year hotel Our a stayed able have supply actually levels volumes period number our nights XX% versus same reported brands, ago December domestic with reached volume recovery to XX% pre-pandemic year room premium surpass with the been to multiple

which trend in period, venturing recovered Helping continued to hotel multiple have fully In few year's locations with volume out demand from destinations prior cities holiday, desire a achieved to nearby pre-pandemic. by driving bookings surpassing the QX. December also addition, the for our is customers recovery drive versus across leisure this a levels India, begin and in a has

leisure drive you a travelers During there the the demand cities like or pent-up customers the remained take return saw flight northern Maldives, of to bit away indicating a travel further eastern north also parts have as strong to the Goa destinations even also destinations and is outbound discovered travel. the the leisure quarter, willing constrained. leisure of and and new international Furthermore, for in the in country, a

now drive rates. been XX% money seen accommodation for work has the to over recovery. popular also resumed as and Similarly, quarterly helping been distancing ultra-premium their alternative Today, deals pre-pandemic premium social hotels quarter's the our hotels has requirements. operations due demand have with occupancy properties - value providing Lastly, to recover great also of they business and have travelers robust

concerns QX, new both of eased further program Host alternative launched of our which function, chat Star have at staying During pre-bookings accommodation. we a and

of reached to for the pace quarter. like would XX% recovery capacity the average on domestic I ticketing share Now, recovery has market within air where the within our nearly business

over actually main Leisure points September, had XX% flown been has ago. our in of domestic volumes the share led surpassed drivers as like our Goa, the QX, basis to and XXX achieved segment of and places by recovery market our improving one levels business recovered had incrementally further year January This combined During Chandigarh the only in brand's XXXX. since a passenger levels Srinagar. pre-pandemic detonation also to of

focus also and business swift been scene January. and grow into like Surat has destinations well for As Vizag, recovery has the to and continued leisure

recovery Lastly, also of air customer at a been to key business slower albeit drive metros has been and centric the heavy similar Mumbai, date And continued top with enhancements. of recovering investments like to has XX%. Trivandrum Pune Delhi, close to pace destinations and recoveries

a revamped and added flight up products. better app to experience For example, cross ancillary sell we and checkout to sell add-ons on give funnel the booker's travel faster

as launched rates double well better to flexibility. offer also social in We pricing as distancing, seats aid and student

rate leveraging our fare In addition, best we finder possibility offered shoppers a multiple help tool achieve sources. to best by the supply

helped lock introduction advance has of price and bookings drive feature a Lastly, retention. greater customer our

seat seen private has share Now I to days. on getting about market of to our a operator redBus which recovery up like in XX% update capacity the would quick business, pre-COVID bus

For the service a our of the far about so third the bus to on was positively demand The recovery region quarter versus sold rail year was continued ago. due platform period seats seen the as services the been number by has for mixed XX% impacted same just disruptions.

like able full help had to relative ago achieve highly travel. users actually train QX, example, geographies, in an December. campaign who a recovery states from booked As In XX%. to pre-pandemic we seat targeted app by other regions a we eastern a to download exceeded only drive in bookings In year launched in near select has of India been of levels recovery India, our December, have previously marketing

quick which ticketing. update Now, and a I business, or train Metro other would to like cabs our ground on includes share transportation

trains recall, but may travel, the to launched you pandemic beginning were vary catering planes. the during of to buses, this or spring, was of who travelers As crowded business wanted last

believe of business our and time. even continued help mobile made devices. ground quarter-on-quarter the market more We as experience speed better to for with segment very growth slower lower should travel QX, During web us we gain users register over strong the users end this

of also up a fact this users users from new ago. total users platforms only a from is In our fifth nearly a all contributing quarter new segment to quarter of

also pre-COVID I'm the December, business versus encouraged overall our early demand recovery. leisure Exiting see SME program has focus volumes booked our through has corporate XX% and signs of been hotel to leading recovery, level. While air had the shown exceeded

platforms Our our traffic January business also level. QXT XXXX's similar Furthermore, with corporate levels of quarter enterprise recovery up during quarter. witnessed has grade across XX% the ended of

for more the Arabic our QX than significant launched jump coming we gradually platform language quarter. a language products the the midsized light coming During accounts. for would new GCC quarter, in presence, and market like on onboard while East the which traffic is in a to quick Saudi to also new ramping saw well. share update lastly, I up launch the or In hotels we as we for searches to Arabic plan Middle XXX our And

borders travel, QX. forward. to the recovery travel that, to in this for hand the region our are its call our capture color like performance citizens to we to Mohit As to placed continued With open we demand and well I increased believe on going over more share financial to would

Mohit Kabra

Rajesh followed COVID complete India Since pandemic, outbreak Thanks the of in and New Happy May everyone. lockdown until Year late XXXX. by

Our focus this significantly the costs, been business to seen being with fiscal has minimizing has very of impacted during year, objective optimize which pandemic. the by losses

fiscal expectations operating this had domestic during has coupled recovery the in Our relentless year. profits is us of we travel which our continued optimization, focus the on we quarter, with when achieve cost reported entered demand adjusted helped ahead

recovery last was in reported domestic terms gross Considering that reflective of pre-pandemic currency is is XX%. quarter, that which quarter-on-quarter business business nearly it pace seeing compared quarter last by XX% restoration year, demand. in in recovery the terms this we led number gradual same of constant of are also was overall Our the travel to bookings about of

$XX.X terms the main last adjusted packages margin pre-COVID about quarter. recovery adjusted previous of of our quarter QX. million times currency business levels Moving adjusted fiscal margin recovery at the more achieved at million, during $XX stood versus of same ticketing and in on in XX% XX% currency about of air versus achieved during our last to year margin and a over margin million, year levels which hotels quarter and business fiscal million the the the constant half is than four terms in same segments, in which and the stood $X.X in $XX.X double The adjusted pre-COVID is constant

a and $X year-on-year As was three adjusted million million about about business, margin constant of adjusted margin bus half for over represented previous the the ticketing the in in our and stood and $X.X XX% recovery achieved times at terms currency Quarter.

the margin terms. in million other adjusted during of of on a our businesses, constant represented XX% recovery currency quarter $X.X Lastly, year-on-year about the

Let in these quarter compared bookings continued as stood rationalization. a an and sales around improvement area variable quarter, at and be percentage we the share promotional sharp me of during the operating details largely which of with marketing expenses, continued of costs to of same year-on-year last expenses, Beginning now comprise some which gross bookings X.X% with significant and gross expenses year. to focus X.X%

recovery, at in as on salary last of the Clearly, year-on-year Our million, an line improvement a million some adjusted over with profit in aid quarter $X.X with personnel about same well the strategy the plethora to pre-pandemic incremental and the of the cost few market million compared an in have turnaround $XX.X in amortization SG&A the to incurred the $XX improvement a the This of depreciation next operating particularly million overhead which in which expenses the in other quarter-on-quarter quarter's came quarter on a of on QX, and $XX slightly about same of business the stood volumes. compared loss $X.X operating reported the reported quarter for along our account year costs $X.X in business levels, has comparison loss million, bottom quarter, increasing restoration and basis. $XX.X reported domestic for prior a of about million quarter the a continuing non-cash reinforces in million reductions million quarter been quarters. of the expenses, been cash belief are over line $X.X of year. a ago. initiatives previous highlight about from further in $XX.X with Adjusted of is adjusted of profit million, adjusted achievement at basis, as of rationalization over the in These and to pursue higher to during

about million with We flow quarter, $XXX the the of cash positive operating cash and of million Lastly, started by cash we management. and operational aided ended of on the to quarter equivalents. cash at equivalents $X.X about $XXX and continue we million cash during focus cash about

have cash As we previously of approximately in also the guarantee and addition credit million. reported, to facilities balances, $XXX

of for undrawn call turn end operator to at remain reported the quarter. facilities please. credit to the over I'd With like Q&A. the Our the that, Operator,

Operator

Thank this do you. Instructions] we from line time, at Goldman And the with [Operator Adukia Sachs. Manish a have question of

Manish Adukia

Goldman Yes, hi. my Adukia Manish afternoon. from taking This Sachs. is Thanks Good so much for questions.

number? least sense Going wanted get you Just believe is be that congratulations one put in there again, a in EBITDA flow I date. question your on cash might end, able selling sustain to spend for could you happens, demand recovery achieving be to which higher this number? number do demand at from should EBITDA need marketing, cash with my back the How recovery positive Or and forward, as breakeven. and the sustainable

that thoughts around Thank you. any So be will helpful?

Mohit Kabra

here. to back Hi, and a to range intent And plus minus last tag down, we million, that cash let $XX range operating breakeven mentioning keep basis. loss or have an situation for quarters, to been profit call we stable pretty few kind that. in Manish, operating or it be been get the of of the the Mohit on ourselves the over has the kind Like me much losses what

breakeven called the kind or endeavor the be we remain as levels We range that and I that have of with kind also continues around to continue over to the recovery, make breakeven quarter think last that business positive keep numbers range, losses, the some and out. but some operating happening, seen the quarter post with will able sure to there. believe breakeven in we've business recovery in us incremental saw we been kind being we've this of of some to

are and changing see largely in we in - in market. of a highly seasonality private growth said also kind domain, we in a mean, most I in where and therefore, I want players are to India, a situation quarter-on-quarter competitive the As

us So, that flexibility significantly us really range costs keep keep therefore if going plus particularly go even on with people administrative expenses, $XX the volume recovery, and around expenses additional comfort we'd cost significant these bit fact an sales, recovery, gives a want your help around fixed in to particularly that of the pruning fixed up that expenses, business million. we've or minus that of in breakeven the rationalized operating of of being line kind with in kind path. general our But variable should structures

Manish Adukia

and Thank that's you best. helpful. Thank you, all the

Mohit Kabra

Most welcome.

Operator

[Operator time, Instructions] this questions. no Are there are And audio any further closing remarks? at there

Jonathan Huang

Yes, joining our good all thank you wish for certainly to health you so forward to today. and look speaking call soon. much We you

Operator

you. Thank you concludes thank This conference today's call. participation. your And for

may disconnect. You now

Jonathan Huang

everyone. you Thank

Deep Kalra

Thank you.

MakeMyTrip Limited (MMYT) 29 Jan 212021 Q3 Earnings call transcript