In This Article:
Release Date: May 14, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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MakeMyTrip Ltd (NASDAQ:MMYT) achieved a record performance in fiscal year 2025 with a gross booking value of $9.8 billion, marking a 25.9% year-on-year growth in constant currency terms.
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The company reported an all-time high adjusted operating profit of $167.3 million, reflecting a 34.7% year-on-year increase.
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MakeMyTrip Ltd (NASDAQ:MMYT) expanded its user base significantly, adding over 9 million new customers, with a strong penetration into tier 2 and tier 3 towns in India.
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The international business segment showed robust growth, with international air ticketing revenue increasing by over 33% and international hotels revenue growing by over 65% year-on-year.
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The company has successfully integrated AI-driven features across its platform, enhancing user experience with tools like Myra.AI for trip planning and various generative AI-powered features for decision-making and customer support.
Negative Points
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The recent geopolitical tensions between India and Pakistan led to a noticeable dip in bookings, particularly affecting the northern region of India.
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Despite strong growth, the domestic air market supply growth was slower than expected, at about 9.5% year-on-year.
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The company faces potential competition from new entrants leveraging generative AI, which could pose a threat to its market position.
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MakeMyTrip Ltd (NASDAQ:MMYT) is operating in a highly competitive market with both traditional and digital competitors, which could impact its market share.
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The company has not yet reached the lower end of its medium-term margin guidance of 1.8% to 2%, indicating room for improvement in operational efficiency.
Q & A Highlights
Q: How is MakeMyTrip planning to manage its selling and marketing expenses given the company's growth and competition levels? A: Mohit Kara, Group CFO, explained that the strategy is to maintain marketing expenses around the 5% level of gross merchandise value. The focus is on investing in ancillary travel services and geographic expansion, which are currently in the investment phase. The company believes that the current level of marketing expenses is efficient and aims to drive faster growth rather than reducing the percentage of marketing spend.
Q: What is the expected growth trajectory for MakeMyTrip in the coming years, considering current market conditions? A: Mohit Kara, Group CFO, stated that the company aims to maintain a growth rate in the 20s, which is faster than the industry average. Despite temporary macroeconomic challenges, the company is optimistic about sustaining this growth trajectory in the next few years.