Makemytrip Limited ((MMYT)) has held its Q1 earnings call. Read on for the main highlights of the call.
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The recent earnings call for MakeMyTrip Limited reflected a balanced sentiment. The company reported strong international growth and increased market share in the domestic air segment, alongside significant growth in the bus ticketing business. However, macroeconomic challenges adversely affected domestic leisure travel and holiday packages growth. Despite these challenges, MakeMyTrip demonstrated operational agility and maintained growth in other segments.
Strong International Growth
The company reported impressive international growth, with international air ticketing revenue increasing by over 27% year-on-year and international hotels revenue growing by over 45%. The international business now contributes about 27% to the overall revenue, up from 24% during the same period last year.
Market Share Increase in Domestic Air Segment
MakeMyTrip successfully increased its market share in the domestic air segment, growing marginally from 30.6% to 30.8%. This indicates a steady hold in the competitive domestic market.
Adjusted Operating Profit Growth
The company reported an adjusted operating profit of $47.3 million for the quarter, marking a 21% year-on-year growth. This reflects MakeMyTrip’s ability to maintain profitability amidst challenging market conditions.
Corporate Travel Expansion
MakeMyTrip’s corporate travel segment saw expansion with the active corporate customer count on myBiz rising to over 66,500, up from 59,700 in the same quarter last year. Quest2Travel’s active customer count also increased to 515 large corporates compared to 458 customers in the previous year.
Bus Ticketing Business Growth
The bus ticketing business showed robust growth, with adjusted margins standing at $42.6 million, registering a strong year-on-year growth of over 34.1% in constant currency terms.
Impact of Macro Challenges on Domestic Leisure Travel
Domestic leisure travel faced setbacks due to geopolitical escalations and a tragic passenger airplane crash, leading to weak demand for leisure travel destinations and holiday packages.
Lower Than Expected Holiday Packages Growth
The holiday packages business remained largely flat year-on-year, impacted by the challenges in domestic leisure travel despite the seasonal demand.
Gross Booking Growth Impacted
Gross booking growth of 25.3% in April tapered off during May and June due to multiple macroeconomic challenges, affecting the overall growth trajectory.
Forward-Looking Guidance
MakeMyTrip provided extensive guidance for fiscal 2026, emphasizing strong top-line growth despite macroeconomic challenges. The company highlighted continued expansion in Tier 3 cities and the addition of 2,000 directly contracted hotels internationally. Strategic focus remains on leveraging generative AI to enhance customer experience and operational efficiency.
In summary, MakeMyTrip’s earnings call presented a balanced outlook with significant international growth and strategic expansions, despite facing macroeconomic challenges in domestic markets. The company’s operational agility and focus on technological advancements position it well for future growth.