MakeMyTrip, India’s leading travel service provider, has announced its unaudited financial and operating results for the fiscal first quarter ended June 30, 2024. The company reported its highest-ever gross bookings and revenue, showcasing a robust start to the fiscal year.
In the first quarter of the fiscal year 2025, the company reported impressive financial growth. The Gross Bookings reached USD2,380.4 million, marking a 21.6 per cent increase from the same period last year. Revenue as per IFRS also saw a significant rise, hitting USD254.5 million, up 31.4 per cent from USD196.7 million in Q1 FY24. Additionally, the Adjusted Operating Profit grew by 29.9 per cent, amounting to USD39.1 million. Despite facing income tax expenses of USD8.5 million, the company managed a profit of USD21 million, up from USD18.6 million in Q1 FY24, thanks to a reversal of deferred tax assets.
The Air Ticketing segment showed a strong performance with an adjusted margin of USD89.1 million, a 21.2 per cent boost from USD74.5 million in Q1 FY24. The Hotels and Packages segment wasn’t far behind, showing a 27.3 per cent rise to USD107.3 million from the previous USD85.6 million. Bus Ticketing also experienced growth, with an adjusted margin of USD32.4 million, up 20.7 per cent from USD27.3 million last year. Other Services saw the biggest percentage increase. Their adjusted margin rose by 38.6 per cent, reaching USD14.9 million from USD10.9 million in Q1 FY24.
These strong performances across various segments contributed to the overall growth. The company’s ability to manage costs and increase revenue, even with higher tax expenses, is noteworthy. It showcases a well-rounded financial strategy aimed at growth and stability. This period has been promising, with each segment significantly contributing to the impressive financial results. If the trends continue, the company is set to have a prosperous year ahead.
Business travel spending recovers in all regions but Asia and Europe. Global business travel spending as a whole in 2023 increased 30per cent to USD 1.34 trillion from the previous year, but it was still about 7 per cent below pre-pandemic levels, according to the report. “We are now expecting to see continued solid spend growth in business travel, but at a more normal, moderate level as the world economies return to a more traditional cycle,” said Suzanne Neufang, the association’s chief executive officer.
Commenting on the results, Rajesh Magow, Group Chief Executive Officer, MakeMyTrip, expressed his satisfaction with the results: “We are pleased to see a robust start to this fiscal year. We believe that the long-term growth story of India’s travel and tourism sector is fuelled by multiple macroeconomic drivers like increasing government investments in travel infrastructure, rising disposable incomes of the middle class, and increasing propensity to travel. These drivers indicate that India’s travel and tourism industry growth is expected to be higher than the country’s GDP growth rate. We aim to continue to drive our growth by capitalizing on the shift from offline to online buying and expanding our customer base and wallet share.”
