- Earnings call transcript Q2 2023

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Vipul Garg

Hello, everyone. I'm Vipul Garg, Vice President, Investor Relations at MakeMyTrip Limited. And welcome to our Fiscal Year 2023 Second Quarter Earnings webinar. Today's event will be hosted by Deep Kalra, our company's Founder and Chairman.

Joining him is Rajesh Magow, our Co-Founder and Group Chief Executive Officer; and Mohit Kabra, our Group Chief Financial Officer.

conclusion live be being on made website after this company by our reminder, shortly will event. and available the a event recorded is the IR As today's of for replay the a session. hosting of also Q&A prepared we remarks, At will end be these within the Furthermore, statements U.S. statements today's of Safe be considered event certain meaning may Harbor during forward-looking made the provision of Act Litigation Reform of Securities XXXX. Private performance, are results These subject inherent statements of are actual materially. not uncertainties, may future differ guarantees and to during speaks event relayed of as undertakes and obligation date, information to the this forward-looking Any this no only company circumstances. reflect the changed to information update

call on these Additional XX, these of are Over just Thank the Rajesh Welcome company's concerning call now in report relations of like to second quarter XXXX. with, Forward-Looking available in section XXXX. for over filings of Magow SEC highlights performance key or I Rajesh couple over from statements investor information SEC the quarter. Rajesh. earnings company's fiscal annual comments. Risk the To filed his Factors from July you, to you, our are contained department. XX-F the start would on Copies turn the of a everyone Form the to Statement the of Vipul. to with

was quarter year same India at was steadily an the in during continue QX by year-on-year be the to quarter million as on stood profits COVID-XX come down XXX.X% as decisions at pandemic infections $XX.X period quarter. While XXXX. for negligible basis. hence in results cash growing bookings for loss leisure million million have adjusted was And adjusted year. the EBITDA EBITDA mild; of weak million reported travel a the seasonally in last or on $X.X compared compared and impact to quarter operating strong $XX.X constant the gross travel, fiscal we of with delivered $XX.X EBITDA to currency

holding are outbound and visa travel. However, inflationary recovery issues international in momentum, the pressure especially

QX. high lead and shared during inflationary fuel fares air As pressures earlier, cost to high

in towards and be of some and quarter, levels Domestic of traffic of we XXX% prices pre-pandemic to oil large than part high. fares QX, leisure remained more crude continues While has ETF the witnessed recovered end strong. moderation the for

flown DGCA data, recovered market overall has per As domestic daily XX%. passenger to

We are to as market quarter than faster recovering the at compared XX% same pre-pandemic.

’XX gross a result, XXX% pre-pandemic more we basis recovery the travel, and headwinds air constant to year currency bookings had outbound gross overall on than As bookings despite compared on quarter. XXX% recovery delivered on fiscal QX in

to aid the in and in restoration of As carrying full positive earlier, getting next consumer passenger capacity rationalized quarters. few to terms to continues stay willingness in travel, outbound international recovery full sentiment stated therefore can fares of with travel

XXX Ministry of reach is medium an the years; populous planes XXXX with XXXX. e-commerce news is the the internet willingness the Government million to XXX Aviation estimates current and phenomenal by travel macro billion navigate investments country in second term industry make aviation, from contribution tourism to civil are for fleet air trillion Civil growth penetration. XXX; and is in by XXXX current looking is by and India’s dollar, interventions, next size current world, XXX this a XXX India from middle Indian airports $X promote projected take to has XXX all class. industry demand a of from trillion travelers necessary which million five XXXX, overall to a Also, in XXX infrastructure and in term growing and robust. GDP, for XXXX short to households growing headwinds the great will resilience, in to travel Propensity next aspiration million sector While us. travel. steadily long from $XXX India's $XXX for market the destination, increasing, of up billion tourism India that contribute to Middle revolution to is India to tourism from and leading remains as in XX XXXX. outlook And class India continues years. by the in continues, for penetrated From seven country under leading including XXXX. to to expected ever an most travel in million digital fueled in perspective, Government

users the high have XX% from services were adoption. million and higher That XXXX the speed decade, should XXX accelerate in enabling in internet to XX XX% times also XXXX, and last from penetration has XXXX increased XX this users increased Recently, in internet launched Over in to in country. richer e-commerce further XG over million with XXXX. e-commerce trend content

at well. been across this the invested revolution as year and we the of penetration have this through -- digital through online And different segments. forefront years, have We travel facilitated

various and value. to travel deliver with an now, starting business digitize cases multi-product user use best experience continue air to Coming We robust aim to business. platform with segments our with

Quick the quick. feature continue leadership We position previous history and booking preferred We of for share user's industry-first flight leverages the innovative helping market the recently maintain on feature features. thereby our back flight Book most launched and flight frequent in products transaction, our to provides them options, lightning bookers. complete their This

have nominal plans good Zero based new flights locking amount. international flight seeing purchasing by on Lock cancellation their full the extended a our We as well, international of data Cancellation continue paying at now travelers our add-on feature product travelers is travelers. time amongst International waiver models. also of our unsure of avail through now in-house penalty to Price of prices this And products on are for option stack We features where very traction booking. of Zero product can product by the and the recently Cancellation travel science who build

but on basis. business, bookings. which maximum credit to hotels, utilize continue we During on not can travel to went points also only our premium year-on-year homestay quarter, reward live to can HDFC packages accommodation reward see we platform SmartBuy points includes HDFC -- and where book the Coming segment, get also to only book strong their with cardholders growth get their

mid-premium strong in segments recovery and recovery slower. segment has been premium seen budget have We while

the and as XXX% Our share extent. compared significantly of that overall to changed and be currency almost also packages a levels hotels on helped basis. in mid-premium in gross booking to pre-pandemic volumes pre-pandemic overall hotel to compared constant Pandemic has premium has habits travel recovery levels increased certain as to

multiple holidays, annual giving short are more to a now and on boost tourism. addition In to holidays nearby taking traveling and weekends long to domestic more people getaways

long we of August, high our For day the weekend. check-ins all-time instance, single on in Independence touched Day

our upfront experience. it We and innovate best industry-first our bookings. flexible feature, users, all quality our payment a of share book new broad customers to for payment. serve customers plan future We thereby allows with hotels capabilities launch any which to without to to base launched We continue have Customers customers a of who perfect properties. their increasing trips across offer this as found early option

tap online. the Additionally, customer around etc., in dedicated customers or our a policies, bookings group to the to launched booking easier we selection, to for funnel meal make innovates the the five payment group group also booking it product more for segment, price besides also endeavor do benefit rooms

India, comes and properties the to free It of Wi-Fi. we affordable AC which program, our During check-in across TV, quarter, with guarantee offers our hassle relaunched promise over a covers top-rated money-back with rooms, properties clean customers. goStays XXXX main which free pan plus

We we budget continue on to build add customer the more experience segment. properties as in

their Customer use case We to case. for price with also needs of about the launched with stay our stay or per cater a use cities to properties six, short flexibility Stays choose have nine advantage. XXXX will new Hourly to in as three, XXX options hours now

are homestays homestay awareness growing hosts of categories. hosted behind XXXX creating recognize received selected to and India's market. XX the this various popularity as gaining been a a annual nominations, in across Homestay of consumers As by We and plus mentioned in its category. neutral reward We earlier, about more jury India, Favorite celebration were Indian the have Awards, properties among kind, of first investing and winners community we recently

holiday well, women year, phenomenally XXXX growth operates experts domestic cost This on holiday Our we the team variable XXX% a start with by up about rate, volumes at our in growth team XXX the domestic structure. compared has the have now. experts ramped pre-pandemic. to packages product to Encouraged of done from

Primo now. grew our of related resulted first also continue localization. We bus to in to step the time our recovery focus experience. quarter, currency acquisition to six driving partners fiscal now. our Ticketing gross about launched on two in quarter Also constant closure Coming instant to channel in to Bus We than user initiatives momentum business, were XX% turnaround Product more program, over XXX% franchise of we and days as which maintained new boarded active than the overall RedBus on business XXX to customer ’XX bookings issue full from hours seasonally recovered XXX less three refund partners towards the weak terms. for in Hindi quarter booking operators levels Bus funnel improvement from the earlier in better

each services Our platform. contributes new intercity new Major cabs, and rail This part March redRail already both quarter newer traffic such etc. scale info the XXXX, thereby to and other business offering segments. the continues Android this app for launched ticketing volumes. users user well services. have as reach non-English standalone Tier ground of lightweight transport significant pre-pandemic GI surpassed tickets, geographies cities, X, X and to expanding of to Tier speaking comes In our the we from and MMT rail

X.X users XXX,XXX of the X.XX. crossed As app an app active monthly million of rating and September, installs with

had a with we the transfer on-time hassle-free in transactions. pickup into drop XXX% experience entered are and we launch, use airport Delhi offering, partnership Post an electric Airport. at guaranteed customers For and witnessing case, pickup exclusive BluSmart

normal of the increasing and our demand penetration to country platforms Our by of now our demand this travel count X,XXX and near the the total to quarter. coming areas under-penetrated end is very of XX,XXX thereby well. Domestic taking the corporate back over with catering NPS into MyPartner, XX. to myBiz an about both increased channel grow agents continued BXBXC other the to by quarter, QXT segment XX% during attach rate and added has travel the

corporate of continues to business Our stay. and X terms gross levels is the than times booking more in pre-pandemic of now

XX,XXX is myBiz, double active we now We which small over have product easy myBiz been and enable and clients QXT, count QXT capability customer base. as the XXX management corporate expense and added with the have to corporates integration customers almost has reached corporates medium recently and large new platform pre-pandemic compared On on side, platform. adding both to and on on ERP

hotels supply value to our both further We to customers. bring more and have also strengthened flights of corporate

last year. over booking to Gross this a to has continues quarter at organically. compared value quarter scale lower albeit business GCC as Our times, grown same base nine

we During our quarter, campaign for delight resulted in and This hotels. theme. the digital-only brand sharper the unmatched campaign flights launched a first uplift with both

the continues up, I would reiterate on COVID that positive like Before and wind to travel back consumer sentiment. infections waning of I to rebound

We growth to macro consistent, let deliver company, future as highlights a demand multi-product robust. Mohit me strong medium the both right have and over of And hand travel inflation-led approach. to With but continue our are leading to that platform the robust of profitability. we the of revenue of to we long-term the to call financial outlook of we pressure quarter. At this, customer-first on believe garner back major share for a in now and MakeMyTrip, terms look very pleased performance in industry now, continue

Mohit Kabra

in the This stronger translation as the on notionally from during cash restated all with, and Significant while our and US ForEx in Thanks, Rajesh. the in reporting cost is by growth as has to growth underneath quarter. versus everyone. the to in restatement dollars. and impact safe start will weakening currency, out in largely result operating currency quarter the INR our the US that growth call dollar and Indian the business Hello, is US you’re hope financial currency. like numbers I reflect finance about a operating impact. I Hence balance healthy. during of dollars And our X.X% is had I’d focus higher affects constant our staying To a

business in our business on during cost is tight years during drive control growth the profitability. operating to leverage business highlighted, in of from the as are As year the last on the disruption pandemic, are travel and returning and couple normalcy, operational with services. to we profitability focus this recovery uncertainties focused view we business fiscal And in in continuing

million million the half in of constant the fiscal, During versus the in gross and first we adjusted loss $X a bookings year-on-year about year. during profit have $XX.X grow currency last seen of at in has first terms fiscal come the XXX.X% half

our at for We booking half, operating are one gross glad to line came targets in points report our profit of and first percentage with estimates. about in adjusted that the

highlight broad strong seasonally gross to compared which the bookings seasonally X%, terms. weak we QX rebound in demand us achieve a X% headwinds, the quarter the that previous about has constant other despite The being just continue is in about of and quarter to currency is that and for helped billion, $X.XX see travel lower quarter macro

air margin Our $XX million, XX.X% growth in ticketing terms. currency about adjusted at quarter-on-quarter year-on-year registering stood growth XXX.X% and constant

a platform, marketing about result you Airlines in the been XX.X% slightly While line at registering business, in in the margins X.X%. the activities festival our up currency adjusted in promotional during our growth advanced constant our growth & other again million, with through to July capture Adjusted and of of about terms. push with due to the our constant year-on-year stood this expectations. air higher of million, of traffic. XX.X% season growth about bookings packages constant expectations. impacted picked for We the XX.X% terms. to margin a our the $XX.X The in currency XXX.X% And the from stood at as at In is easing year-on-year strong margin the and quarter, have some were business was in during ticketing see have and during also it also traffic quarter, September which margin the due additional margins up X% year-on-year airfares that August, ramped a on Adjusted during consumer the which an are million quarter currency promotions bus in the our during at at of stood businesses $XX.X quarter helped hotels at line witnessing terms. margins demand $X.X October.

acquisition we costs with respect especially line were in to be costs. with prudent largely Our operating to customer and spends, variable continue our

during the at operating same about profit levels million As promotion a X.X% sales quarter. stood cash non-cash Adding adjusted at profit operating in EBIT the adjusted same booking of came to gross QX last $XX.X during $XX.X the and of We as post at adjusted quarter the adjusted or value as about about result, expenses, expenses our year. marketing [indiscernible] or year. thereby the of fiscal an million compared EBITDA last almost

which and Simplotel company also long-term company largely like scale in in engaged we quarter, the new a investment Technologies done markets lucrative the via in can States hotel websites controlling managing Private in in During but of bode with only for not acquired primary help Limited, prospects which India, Simplotel. additional up engine offerings United the interest well their in stake them equity booking capabilities was will India. our This test

growth. position We of leverage to future cash areas will continue brands investments strong our and to in drive

Before I me recent end, on quick let order. a CCI the share update

October, Tribunal confidential National order XXth have order receipt we Law communicated receipt. within the of of the received had days on appealable XX The Company order on is October. XXth before Appellate public we While India of the

case. strong in We we order the are currently believe reviewing have and merits we the

We determining are working of external future in concerns also Q&A. action. Vipul our that, our for to I legal turn with the With call course

Vipul Garg

Mohit. you, Thank instructions] you. you, Thank Thank [Operator Rajesh.

question. your you and the line First from is [Brian Brian, ask unmute yourself may of Wang]. question

Unidentified Analyst

expenses quarter and the how of Hi, let intend and your long front, And evening Congrats S&M third on in the IFRS you operating behind Happy this views us team. term? to you could I air one, your side management Diwali inducement to ticketing you On costs manage term? know straight in long may? levels we of how should Thank the and very And this manage do think about How the this a higher might on second much. how if you customer profitability? translate profitability. to

Mohit Kabra

we to the like much maybe expenses we times. Brian, that. efficient the Hi during do they to be lower continue prudent called we And And be promotional will I than and can what overall. believe on remain very out, continue therefore, had used marketing take customer cost see I to pre-pandemic

expenses be would booking. X and If to marketing of percentage points the percentage promotion to about XX gross recollect sales used points you pre-pandemic

higher Although close about seen XXXX. XX% have at in much number about to we back way

out the between in ’XX. of building XXXX online the the terms Now accommodation of mobile these investments were particularly business business were the of in coming doing that largely and significant on amount significant also launched which were we or acquisition hotels penetration mobile platforms, driving to apps, customer the

our with acquisition customer in was investments as category. as largely hotel this on in the well mobile in So keeping platforms

these see both to in continued growth have We areas. good

this customer to through. coming As increase this of acquisition acquisition you’ll mix coming line an mix, But of, close cost of percentage kind about about XX% And the kind in in the scale-up We close could the once again mix in in little a favor of and gross do like points to result hotels efficiencies a the with that customer costs to so. now bring bookings. or of attention expect which I be Pre-pandemic, improving would of X% revenue would the hotels. X.X plus. largely to to to bit see of be about our in, used is revenue

of little short acquisition the Coming from to lagging are margins, customer we ticketing leverage air near-term in costs because accommodation slightly in might recovery is the We do increases in don’t see as in increase and operating continue operating margins future. we of customer overall really as coming believe will any slight acquisition up, the to bit a a also the segment little in well. scaling see a blended longer-term be costs the should the significant the because recovery catches But segment. slightly overall up, in that that kind improve we the currently there

us this kind So in or And year year. what that compared the current in maybe really improve what upon fiscal half to is profitability operating of year. second of half had help first the first half we seen should seeing you’re also last

Unidentified Analyst

very much. was That you Thank excellent.

Vipul Garg

you, Thank Brian.

Next unmated ask your question line question may -- you is please. and Lester, been [indiscernible]. Lester from you have unmute yourself of the

Unidentified Analyst

Hi, I this variable branding cost you less was the that noticed customer increase on to expected quarter due actually it’s like In you the actually you. but that, slightly other earnings last also the about or the Is or same cost. it to lower. branding, in about call, factors factors? Thank any spend acquisition

Mohit Kabra

Lester. Hi,

kind think had than be we planned weren’t QX. at keep recovery it to And really pushed expected. kind accommodation extent, of we’ve levels campaigns quarter the But had as volumes this quarter. to on next in by been out we had increase much because of able the through therefore improvement also been better the a seasonally significant see the kind of is offset one expected. of we we strength lower has would of brand of kind kind now of the that quarter. as in of got I should This the coming planned it kind yes, side much in kind seeing some pretty these of because in getting expenses slight of in next campaign kind the And the we possibly also in

Unidentified Analyst

you. thank Okay,

Vipul Garg

we Instructions]. have of Thank At this you, Lester. time, [Operator questions. no point

a minutes. So we’ll wait of couple for

Thank is question Shahpuri. yourself line you. can the from of and question Tarbir, now. ask Next you the Tarbir unmute

Unidentified Analyst

and a few Thanks. maybe intensity, Hi spending out], mind Rajesh, the on your sense do [year ground? today competitive you minutes you are what seeing towards specifically And that. this a what’s on is

Rajesh Magow

Sure, Tarbir.

for of so give the offering. given just market. specific us, way me is all-segment the dynamics overview an are Let player, is, sort particular sort of and competition competitive see to in a product we the we the that And the a short of you

last build be domestic some consumer So change more. real market what so the or the an say flights same. There quarters or we’ve the bit is There same. endeavor It first, overall in push for the airlines of to market. XXX% recovery the is is is the the been terms, domestic sort overall remain for let’s continues And of our way, for volumes competitive that, to given everyone dynamics market. full air in on of no of from really promotions volume seeing couple the from by the the recovery because sort of that in the still the also short air part short-off of sort of is

change or really there ahead terms of in And homestays it to and the what past, there real again going up And the the making players, continues significant is no it the Expedia picking been activity our any Airbnb competitive to investments same. So sort haven’t we market. or in from competition had hotels be Booking.com aggressive some for is of market, in we whether coming the seeing change any global also marketplace from competition. seen or

some that, down ixigo segment, of say the intensity will. or product may the supply for level, largely Paytm the given of result aggressive And well, bus Again share to, quarters general by from here the bus are or relative so, competition local is not there driven that actually extent strength on by ago. the necessarily been some in if to bit of actually would would quarter again and coming that or this as So we say, overall, if has we transport a And on I of out. on and competition also, market back gained is our seen are I have the segment coming side. far sort focused horizontal a as reporting you at leader we focused promotions, OTAs it the in to the ground strengths whether bus there there we focused couple have

Unidentified Analyst

at all that it a for much. ask one maybe, cross-listing internally That’s Thank a in. to one It’s I helpful. you just And really want publicly. all? Is I if short and get there discussing actually more could something so plan

Mohit Kabra

Hi, Tarbir.

mean You cross-listing? just

Unidentified Analyst

India, yeah. And listing in

Mohit Kabra

we also in I in that India? basis which out called kind considerations this mean consider Yeah, earlier will I two or India. of key Listening listing three

have a raise need of fund for kind need capitalized. really now don’t As because is right for concerned, we far the well a we’re as funds

sheet We in on balance $XXX and of the million have cash terms got cash over equivalents.

leveraging only one, really something of to and that significant not driver, we considering. that value driver also have kind the overall creation shareholder kind that’s of of the operating are the brand of we being So strength that so a of market, kind Couple and unlocking in considerations the over the the getting the think will should of impact which pre-pandemic I will levels. to pandemic very it last of see be, kind back part growth business we of seeing couple kind years, over drive keen the we’re

quarters. So agenda that kind operating and is are kind other there. the operating leverage through. the of prospects of remains that we open key over And few kind kind listing profitable see in to a This kind model ensuring remain be to path get coming on And we last that a of of got to of, still India will has continue if as that well. demonstrated and the the the continues the possibly for

Unidentified Analyst

the all for from Good That’s end. future. luck so much. you my Thank Great.

Mohit Kabra

you. Thank

Vipul Garg

of Thank Aditya Aditya, Tarbir. your can from next question and unmute The you, you line now. question Chandrasekar. ask is the yourself

Aditya Chandrasekar

side. hi, Yeah, questions a my quick couple just from of

over the last on of market can has and us Just Firstly, moved secondly side the And quarters. segments? the some a quarters, adjusted what it margin sense see of it the if percentage, all fluctuation has would we maybe couple at last share how in be broadly moved? couple of of air give ticketing on you share the the each in the

QX, there activity, airfares a it again kind down of Yeah, going So two of the that QX, any back function there in make up up of in maybe commission or purely down way are the is change structural questions. or adjusted those etc.? the promotional we airline in is margin came in terms and

Mohit Kabra

out had the kind push like that of called largely ticketing coming kind the we the in promotional see in for of air line business the percentage from margin Yeah, fluctuation the with in so I adjusted is airlines.

key of fluctuating fluctuation reasons one for seen significantly that’s pandemic. the through over the the very it We’ve there. So

load platform, airlines of on that first seeing want coming so of to are to overall just activities of do factor kind of the of and is back that. it’s from kind amount largely it that to your the kind the linked kind they taking It in So question. the promotional would

Rajesh Magow

Maybe was I that Mohit, can the take about share. market it

Mohit Kabra

Okay.

Rajesh Magow

just take Maybe that I Aditya. can quickly

much country. on which only Civil we the line much market. When incrementally And we’ve together. in actually segment, of have share, get that daily segments, Director in third-party is we matter the we growing. from data surrogate We the well XX% is recovery market have pick-up as would we is faster it we every all have DGCA So put segment. General been authentic given air packages about domestic where gained we data pretty we’ve like you believe on about there there online share used And data, been the today business growing than pre-pandemic because do total of be market clearly the or the of Aviation basis, other of are to at offline for This gained XX%. pretty hotels together also that whether and hotels is or bus

just from that directionally, a I we share. So gaining been we’ve trend believe guess perspective,

Aditya Chandrasekar

the margin again, adjusted forward just lie will going on follow-up think you this should to between say a on X% do sustainable Yeah. basis X% or at a how it. Got where quick so that number number? we And look

Mohit Kabra

I promotional that I percentage particular points. remain factors space. of largely overall think in and activity of load like the is it what said of But prevailing to all and the linked the quarter, air kind around during six, kind particular that it kind are should fares seven

seen of this X% to up We plus have some the going in pandemic. even quarters the during

stabilizes. will overall domestic pricing civil little aviation and the until So remain I the bit market volatility kind stabilizes that think of of

Aditya Chandrasekar

it, Got thanks a lot.

Vipul Garg

question from Bihani. your you, Raghav, Raghav please now. Thank is of you Aditya. the question next may The ask line

Unidentified Analyst

Yeah.

question. around already no market think my I you. taken but So, so, was question share, Thank that up, the you’ve

Vipul Garg

the Thanks, Raghav. of next ask We’ll unmute line question take Prashant may you from please Kothari. and Prashant, now. the question yourself the

Unidentified Analyst

for thank you Yeah, opportunity. the

into rupee in to much terms wanted much say you you guess, terms, increase? how more cost, increase growth if salary have it will the it of headcount I that’s explain in is Can like understand and is on personnel expenses year-over-year. XX% it be I just Just how personnel convert the of addition dollar that to

Mohit Kabra

take I’ll Prashant. that. Hi,

Just give second. me a

overall we amount through. think terms necessarily headcount significant of that, largely impact increase. not I in did And expect in kind it’s come of inflationary but of certain to from coming the

it which part So from coming significant [indiscernible] larger increase, a think not headcount necessarily is inflationary of and increases. any the I

Unidentified Analyst

Okay.

So increase year? type XX% this base of board it’s the roughly XX%, across

Mohit Kabra

rolls on would those it And also I we’ll separately. see part part. be that the more would need share of because the people kind to have call of overall center. and details possibly SGA Maybe on as But could a of combination

Unidentified Analyst

right. All

Okay. sure question, you late. a already I’m not call the because bit the I if this And joined second answered

the and the happening what’s us reflection you or the to that a slower. just it kind segment, is of hotels bit is the said recovery in overall Is On industry? hotel for it of

Rajesh Magow

more of if Yeah, room industry Prashant say price use budget leisure Prashant, cities just commentary a per of I night were the versus maybe night actually that kind the point And on too, INRXXX it of as budget what question. the was segment take we hotels. overall that our for And can trying trend case, from to room go deeper, the will you be say cities. to segment. business INRX,XXX part

levels the sort of booking has the to shared close basis robust in recovery terms volumes pre-pandemic of basis. as XXX% we While mid-premium even segment, for recovery just gross and on very surpassing premium on been fairly both

a guess from it’s some segment on on little industry part across a segment. that in as we the the of But lot was terms that’s of only particular average all and happening across function phenomenon, going specifically impact the this the a us this reality there is of not industry. And to long sort a customers the budget time. it’s of acquisition the sources. And And back industry that. just inflation speaking an price, be where to belief up I And see the it is regime in or that our an because is just all to of there the used the of back. It’s of there is full-blown manner. price just maybe just of also the just aggressive is bit of matter the cases also absolute of consumer come I taking use segment pre-pandemic the mean, in Specifically selling sort relatively coming a

Unidentified Analyst

to investment do in you Yeah. segment. plan your And that increase

think kind that help I the what’s you revive increasing thinking the of mean in the of demand? kind So would marketing spends? there

Rajesh Magow

No, sure. spend. Not necessarily marketing

and fact, right right pushing you experience with of in investments making supply just, platform. kind In know, have on kind on terms the been we having of our actually of

just versus high weekends of kind long our could trying intelligence goStays is which or what the of them to might budget have on price there now the points goes all a on the on commentary to adjustments be terms And are the season low price for covered ensure to them there them. pricing well versus etc. we and seasonality also versus sort that And will the rate in or their is relaunched where wherever the that work intelligence noticed as differently kind different weekdays in of we destination-based days. in different weekends that get segment. get seasonality pricing specifically conversion you proposition, obviously and of back partners we give what of sort that fares matter our for we As with periods, platform happen regular do to

passed the kind partners. our is all gets pilgrimage promotions of if the a to Let’s that And seems sort some say making on of of on variety for, happening up pilgrimage or of they end price intelligence destinations, to on of of doing adjustments the festival platform. be so kinds then any sort there

supply through side the So both and side, platform our side with on pricing product front product end coupled of are supply on side. side, happening all also our on interventions the even on kinds partners the

Unidentified Analyst

Okay. segment hotels lot And increased packages a just last service you the is Can for just this explain the has what cost one it? question, and year.

Mohit Kabra

a gross think growth packages basis. division, we’ve sharper Yeah, I in which reported seen on the of kind gets coming

the year-on-year of service see cost increasing kind you therefore of on basis. a So

Rajesh Magow

domestic on but is Yeah, And nothing Mohit XXX% us out packages if gets business cost packages. basis grew the called only this the of just out, cost the may the a of and year-on-year. reported sales I packages the add, gross I Prashant. servicing had like for that for pointed

with line the in grown have would growth that revenue. so And in

Unidentified Analyst

by would what we looking be standalone roughly part contributed margins if are the the segment, So at and of is the packages what nights? part adjusted

Mohit Kabra

of do So margin a as kind it’s if well, but and hotels broadly hotels. hotels look know predominantly operating kind packages level, while share at standalone on between we metrics of you the mix at say

as in breakdown side. XXs of packages is higher. hotels the hotel coming much But a booking -- of the yeah, mix of from So high of kind gross it’s there is the kind

Unidentified Analyst

All right.

Okay.

Vipul Garg

is Sinha. Santhosh, line The Prashant. yourself the unmute may your now. ask next question and you you, from question of Thank Santhosh

Unidentified Analyst

question Hi, launched that the regarding recently. my ForEx was is product

revenue kind been margins this ForEx has segment? are from what segment, traction actually expecting how the or So in segment? this of you And

Rajesh Magow

And ForEx in integration I outset, Yeah. at fact just early Santhosh, that’s we just last we good to the with quarter the just may were take be that mean if on BookMyForex, I with had we on this focusing integrating and finished sale them. supposed days. I that, the question. we launched, would BXC company platform say -- the

finished in our some current for as have So to we quarter, to started spilling to just more of more see integration we over opting well. just recently quarter from traffic ForEx going And the platform also in sort this traction, product. running fact

but part sort early quarter. BookMyForex, really only also of the So we’ve consolidated days, again just of that

margin ancillary the now is what this right But kind able should we of better I of product quarters, growing for ForEx, coming sense reported the of to coming you think much etc. called in be how how the and it’s quarter insignificant. give and contribution it’s So a sort from

Unidentified Analyst

That Okay. helpful. was

is question again. hotels the Next regarding business

it homestays the will company? goStays of And it of share segments or increase, the the margin share increase will also as actually lower the segment so its revenue, margins revives, impact impact actually in So company? as the for budget for will the revive, hotels

Mohit Kabra

budget we to had out, XX% we overall the a improving. called mix There But with kind like remain improvement XX% margins slight overall kind hotel the could of segment overall. in the margins to range be do of kind within expect of

kind keep So in I a of leave mix kind that of of the as even to as would mind, kind range changes. larger

Unidentified Analyst

for Thanks lot. a my you. question. Thank Thank Thanks taking you.

Mohit Kabra

welcome. Most

Vipul Garg

yourself you, Jain. Santhosh. Vijit The now. line Thank you question the next and ask from of unmute may the is question Vijit,

Vijit Jain

the Hi, One, And across joined the my as my overall that sorry supply mentioned that bit costs pandemic on costs you’ve I this terms was consolidated was from the talk Yes. increase you fully the a if of it Thanks second part currently question late. side. question in two cost we Vipul. the you employee quarter is quarter? you questions can Apologies in little segment? stands it when already recovery this from BookMyForex is answered. revenues. But how should in it QoQ in only of what Can quarter that the look terms this And costs, of and other of impact about numbers? at in next comment

Mohit Kabra

was What first Sorry. you Vijit. asked? Yeah, the one

Vijit Jain

Supply recovery the from pandemic moment. the at

Rajesh Magow

Vijit, the Hi Yeah. I question. answer will now

So question. overview Mohit let and me second can then the recovery first on just give you on supply the an take

sort X% might about that but don’t churn of constraint is be for concerned, our is is hotels come like the And be back. I budget overall a flights is use se. domestic bus the flights of sort is travel on supply there supply hotels similarly in apples-to-apples the number in back companies to people region, there companies And back more, recovery case volumes the especially of in some is bus, recovery sort there XXX% them come case office that and back as any that have XXX% of of in south in is pre-pandemic. use is is XX% cases supply working to that recovery concerned, case, recovery pretty business. a back and time well. there As to segment supply may think goers small best happened, use terms that on was like may But be as almost much or of of people office It’s with which forth you some big estimate, is still has And just far I would sort otherwise and mentioning first happens supply on far as are case, compare per XXX% come be bus the side, more XX% there all. of mandating for might IT that the bus, IT if terms the hotel still through to as of to

Vijit Jain

Got that quick it. Rajesh, a just to follow-up question.

on parts segment, the has well demand some premium done the know the just we well the the the segments you in far as budget. been kind on is of hotels, so for other from The in not of On general, the has and things hotel one see also but side, weak side. right, other the of economy side pandemic

comes if segment do it impact. see So when Goibibo if same strip-out other supply-related budget kind to behind you do I put the the I lagging you words, But demand know the of MakeMyTrip -- can just it in on don’t the you impact relatively app from hotels? related the or if see you

Rajesh Magow

Given that mid was platform segments. Goibibo, yes, Goibibo budget or was leading for the and budget spot sweet the segment

-- of to way, as comparable is is well, segment, also well. So doing sort the there behind, lagging of by lagging very and budget which it’s Goibibo. MakeMyTrip with yes, but sort segment, it’s while MakeMyTrip specific on mid both it so behind But

more also aggressive So pre-pandemic that on it you be, to supply this that And like sharing speaking, definitely at say not be because on that up of just or in what be hotel relatively prices the I because on aggressive drives across phenomenon. it side used point would more earlier, the to industry the less like partners demand was promotions which of time, on I may is the budget side, firmed the particular fact segment the the call the more an hoteliers, acquisition more used in focusing relative there have in customers demand. the segment, to

get some taking demand the up, that to because part firmed to come can the as the levels pricing. the new rates sometimes demand might of have And as more used of be time up And people superficial. be

side. So demand the to side the more it’s my mind than supply

Vijit Jain

costs. Thanks, take question, Rajesh. which if on second is it. helpful. Thanks, my you Got Mohit, can super

like would costs, etc., full other impact costs, the what employee of terms BookMyForex? of In it be

Mohit Kabra

happen large. the on Simplotel. kind there cost two be consolidating with put we’ve could BookMyForex people Actually But same of between impact significant you know the together be side. the any coming It and of will won’t kind started

Vijit Jain

Okay.

Mohit Kabra

are the to increase actually to out a we versus continues these will part be of called fiscal. look happen increase going increases, when comparative that basis meaningful. of nothing the had inflationary All it at be previous on marginal the Large everyone

Vijit Jain

Those Mohit. were you my thanks questions. Great, so it. Got Thank much.

Mohit Kabra

Thank you.

Vipul Garg

Manik question. Manik, of Vijit. yourself next The you, may and line from you your question the unmute Taneja. is ask Thank please

Unidentified Analyst

for question probably have answered could you the joined I us and what on might Thank But rates if the understand And airlines call you thinking forward? that any business earlier. help the take late the my drove you sequential one-offs apologies opportunity. Thank the business you. there rates should the Are about the in take one and improvement there this airlines on going be quarter. the how

Mohit Kabra

Yeah. earlier. that Manik, I picked had

is the in the coming line with of the the call kind possibly we’ll stress during kind from been factors load spending, quarter. airlines have in which So briefly that because increased out largely it’s under of promotional overall it

are airlines. of which by the on account on funded coming in promotional of kind it’s fluctuation So largely spends,

Unidentified Analyst

you And players if comment relative over share that between helpful. the you. be Thank here, on really market want would to could

Mohit Kabra

no significant Our quarters, changes previous market largely share around line levels, has over remained in the the XX% with there.

Unidentified Analyst

the in changes from space? the other intensity any competitive in players of some And

Mohit Kabra

quarter. really. really Not Not to the

Unidentified Analyst

you. Thank

Vipul Garg

we’ll has Thank last Last end call then can end that, call. If can the now. from question, time, interest take you I the of you, closing comments in Rajesh, other that we we any question? Manik. anyone the guess otherwise question. was and the

Rajesh Magow

Thanks as you. for questions we’ll And keep all go you. as everyone All we for lot. Vipul you, Thank well. updated and thank time. Thank along. the you thank curious you, a right, all Thanks sparing

Vipul Garg

you Thank for everyone joining.

call. you. the disconnect now may Thank You

MakeMyTrip Limited (MMYT) 1 Nov 222023 Q2 Earnings call transcript