MakeMyTrip recorded its highest-ever quarterly gross bookings, revenue and profit in the December quarter of FY24, driven by robust demand during the seasonally strong quarter. The company reported profit of $24.2 million in Q3 FY24, up from $0.2 million year-on-year (YoY). Adjusted operating profit registered growth of 69.5 percent YoY and reached $33.4 million in Q3 FY24 compared to $19.7 million in Q3 FY23, as per Moneycontrol.
Revenue grew by 26.9 percent YoY to $214.2 million in Q3 FY24 from $170.5 million in Q3 FY23. The OTA registered 21.7 percent increase in gross bookings YoY to $2,088.3 million in Q3 FY24 from $1,738.2 million.
Hotels and packages segment saw highest growth in terms of adjusted margin at $98.8 million from $72 million, up 38.8 percent.
“Our accommodation business which includes hotels, homestays, and packages witnessed strong year on year and quarter on quarter growth in the seasonally strong quarter. During the quarter, we touched our highest ever single night check-ins of close to about 200,000 people on the back of strong holiday demand. We sold over 63,000 unique domestic hotels across 1,760 cities. On the supply side, we now offer over 78,000 domestic properties on the platform,” said Rajesh Magow, Group Chief Executive Officer, MakeMyTrip during earnings call.
Company’s homestay business also recorded growth as the platform sold over 16,500 properties across more than 800 destinations.
Contribution coming in from hotel and packages has improved from 40 to 45 percent.
“The emerging trend of homestays specifically has also started helping. On one side new sort of supply has come in and there is also new demand. This has added momentum to the overall demand on the on the hotel and accommodation side,” the Group CEO added.
Air ticketing margin grew 14.2 percent in the December quarter to $79.2 million from $70.2 million in Q3 FY23.
“During the last quarter, I talked about near term supply challenges particularly in the domestic market, due to the insolvency of Go First and other issues. The Indian carriers are taking various steps, including addition of large number of planes in the coming years to fill the supply gap. Airlines are expected to add about 150 planes during next year, which will be the highest number of additions in a single year,” Magow said.
He added that they are hopeful of the supply situation improving from the next financial year. “Despite the short term headwinds, our growth outpaced the market growth of 6 percent allowing us to consolidate our market share at 30 percent plus levels in the domestic air market. Our international air ticketing business has not only fully recovered but have started to grow above the pre-pandemic peak.”
During the quarter, the company built on its spiritual tourism product and launched Ayodhya charter train package with 800 passengers and it plans to scale this and other similar offerings in the coming quarters.
“If spiritual tourism picks up, like destination Ayodhya, which is likely to happen, because there’s also an infrastructure development that has happened in the city, I see no reason why more number of people wouldn’t want to travel and experience these emerging destinations which they had not really explored in the past. Or for travellers the the use case earlier for these destinations was going for offering for prayers. It might just be an experience merge into a new use case where people would want to go and visit these destinations more for historical reasons,” Magow added.