MakeMyTrip Limited (NASDAQ:MMYT) Q2 2025 Earnings Conference Call October 23, 2024 7:30 AM ET Company Participants Rajesh Magow - Co-Founder & Group Chief Executive Officer Mohit Kabra - Group Chief Financial Officer Vipul Garg - Vice President, Investor Relations Conference Call Participants Sachin Salgaonkar - Bank of America Manish Adukia - Goldman Sachs Gaurav Rateria - Morgan Stanley Aditya Suresh - Macquarie Vijit Jain - Citi Ankur Rudra - JPMorgan Manik Taneja - Axis Capital Vipul Garg Hello everyon ...

Company Performance - MakeMyTrip reported quarterly earnings of $0.36 per share, exceeding the Zacks Consensus Estimate of $0.33 per share, and up from $0.25 per share a year ago, representing an earnings surprise of 9.09% [1] - The company posted revenues of $210.99 million for the quarter ended September 2024, which was 1.82% below the Zacks Consensus Estimate, compared to $168.69 million in the same quarter last year [1] - Over the last four quarters, MakeMyTrip has surpassed consensus EPS estimates four times and topped consensus revenue estimates three times [1] Stock Performance - MakeMyTrip shares have increased approximately 119.2% since the beginning of the year, significantly outperforming the S&P 500's gain of 22.7% [2] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.43 on revenues of $256.59 million, and for the current fiscal year, it is $1.66 on revenues of $972.25 million [4] - The estimate revisions trend for MakeMyTrip is favorable, leading to a Zacks Rank 1 (Strong Buy) for the stock, indicating expected outperformance in the near future [4] Industry Context - The Internet - Delivery Services industry, to which MakeMyTrip belongs, is currently in the top 10% of over 250 Zacks industries, suggesting a positive outlook for stocks within this sector [5] - GoDaddy, another company in the same industry, is expected to report quarterly earnings of $1.25 per share, reflecting a year-over-year change of +40.5%, with revenues anticipated to be $1.14 billion, up 6.9% from the previous year [5]

Revenue Growth - Revenue for Q2 FY2025 was $211.0 million, a 25.1% increase from $168.7 million in Q2 FY2024[5] - Total revenue for the three months ended September 30, 2024, increased by 25% to $210,993 thousand compared to $168,690 thousand in the same period of 2023[38] - For the six months ended September 30, 2024, consolidated revenue reached $465.51 million, up from $365.42 million in the same period of 2023, marking a 27% increase[46] - For the three months ended September 30, 2024, total revenue reported was $210.99 million, with a constant currency amount of $213.37 million, reflecting a year-over-year growth of 27.1% in constant currency[48] - For the six months ended September 30, 2024, total revenue reported was $465.51 million, with a constant currency amount of $471.56 million, showing a year-over-year growth of 27.4% in constant currency[48] Segment Performance - Air ticketing revenue increased by 25.6% YoY to $61.0 million, with an adjusted margin of $96.0 million, up 19.7% YoY[7][8] - Hotels and packages revenue rose by 15.5% YoY to $103.2 million, with an adjusted margin of $90.7 million, up 19.9% YoY[8] - Bus ticketing revenue increased by 25.4% YoY to $24.8 million, with an adjusted margin of $27.1 million, up 24.3% YoY[9] - Revenue from other services surged by 100.8% YoY to $22.0 million, with an adjusted margin of $16.4 million, up 49.3% YoY[10] - Adjusted Margin for Air Ticketing was $96.03 million, with a margin percentage of 6.8% for the three months ended September 30, 2024[51] - Adjusted Margin for Hotels and Packages reached $90.73 million, maintaining a margin percentage of 17.5% for the three months ended September 30, 2024[51] Profitability - Operating profit for the quarter was $26.1 million, reflecting a 288.9% increase YoY[2] - Net profit for the period was $17.9 million, a significant increase of 797.0% YoY[2] - Profit for the quarter ended September 30, 2024, was $17.9 million, up from $2.0 million in the same quarter of 2023[19] - Profit before tax for the three months ended September 30, 2024, rose significantly to $25.55 million, compared to $2.18 million in the same period of 2023[44] - Adjusted net profit for the six months ended September 30, 2024, was $85.21 million, compared to $61.39 million in the same period of 2023, indicating a growth of 39%[46] Expenses - Service cost increased by 23.6% to $49.8 million for the quarter ended September 30, 2024, compared to $40.3 million for the same period in 2023[12] - Personnel expenses rose by 12.5% to $39.4 million in the quarter ended September 30, 2024, up from $35.0 million in the prior year[13] - Marketing and sales promotion expenses surged by 43.0% to $35.8 million in the quarter ended September 30, 2024, compared to $25.0 million in the same quarter of 2023[14] - Marketing and sales promotion expenses increased by 44% to $75,876 thousand for the six months ended September 30, 2024, compared to $55,622 thousand in the same period of 2023[38] Financial Position - As of September 30, 2024, cash and cash equivalents and term deposits totaled $717.2 million[21] - Cash and cash equivalents at the end of the period increased by 24% to $401,873 thousand as of September 30, 2024, compared to $327,065 thousand at the beginning of the period[42] - Total assets decreased by 6.7% to $1,660,077 thousand as of March 31, 2024, from $1,779,287 thousand as of September 30, 2024[36] - Loans and borrowings increased to $223,730 thousand as of September 30, 2024, from $216,818 thousand as of March 31, 2024[36] Shareholder Returns - The company has remaining authority to repurchase up to $135.8 million of its outstanding ordinary shares and 2028 Notes[23] - Diluted earnings per share increased to $0.16 for the quarter ended September 30, 2024, compared to $0.02 in the prior year[20] - The company reported a basic earnings per share of $0.16 for the three months ended September 30, 2024, compared to $0.02 in the same period of 2023[38] Strategic Outlook - The company remains optimistic about the long-term outlook of India's travel and tourism market[3] - Focus on innovation and technology to enhance customer experience is a key strategy moving forward[3] - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[46] Customer Metrics - Gross bookings for Q2 FY2025 reached $2,257.2 million, a 22.7% increase YoY[4] - The number of Air Ticketing flight segments increased from 13,068 to 15,105, representing a growth of approximately 15.6% year-over-year[51] - The number of Bus Ticketing travelled tickets rose from 19,403 to 23,558, indicating a growth of about 21.0% year-over-year[51] - The company reported a total of 8,504 room nights for Hotels and Packages for the three months ended September 30, 2024, up from 7,238 room nights, marking a growth of 17.5% year-over-year[51] Financial Adjustments - Net finance costs decreased significantly to $0.5 million in the quarter ended September 30, 2024, from $4.5 million in the prior year[17] - The company reported a net finance income of $1,187 thousand for the six months ended September 30, 2024, compared to a net finance cost of $5,074 thousand in the same period of 2023[38] - Finance income for the three months ended September 30, 2024, was $7.28 million, compared to $5.46 million in the same period of 2023, reflecting a growth of 33%[44] Taxation - Income tax expense increased to $7.6 million for the quarter ended September 30, 2024, compared to $0.2 million in the same quarter of 2023[18]

Core Viewpoint - MakeMyTrip (MMYT) is expected to report a year-over-year increase in earnings and revenues for the quarter ended September 2024, with the actual results being crucial for its near-term stock price movement [1][2]. Earnings Expectations - The consensus estimate for MakeMyTrip's quarterly earnings is $0.33 per share, reflecting a year-over-year increase of 32% [3]. - Revenues are anticipated to reach $214.9 million, which is a 27.4% increase compared to the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised 89.47% higher in the last 30 days, indicating a significant reassessment by analysts [4]. - The Most Accurate Estimate aligns with the Zacks Consensus Estimate, resulting in an Earnings ESP of 0% [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive or negative reading indicates the likely deviation of actual earnings from the consensus estimate, with positive readings being more predictive of earnings beats [7][8]. - MakeMyTrip currently holds a Zacks Rank of 1, but the combination with an Earnings ESP of 0% complicates predictions of an earnings beat [11]. Historical Performance - In the last reported quarter, MakeMyTrip exceeded the expected earnings of $0.20 per share by delivering $0.39, resulting in a surprise of 95% [12]. - Over the past four quarters, the company has beaten consensus EPS estimates three times [13]. Conclusion - While MakeMyTrip may not appear to be a strong candidate for an earnings beat, investors should consider other factors influencing stock performance ahead of the earnings release [16].

Group 1 - MakeMyTrip Ltd (MMYT) shares fell 5.17% to $86.93 on October 2, reaching an intraday low of $86.64, which is 21.32% below its 52-week high of $110.49 and 136.16% above its 52-week low of $36.81 [1] - The trading volume for MMYT was 727,062 shares, which is 120.8% of the average daily volume of 601,739 shares [1] Group 2 - Wall Street analysts have set an average target price of $103.67 for MMYT, indicating a potential upside of 19.25% from the current price [2] - The consensus recommendation from 9 brokerage firms gives MMYT an average rating of 1.9, suggesting an "Outperform" status [2] - GuruFocus estimates the fair value (GF Value) for MMYT at $84.60, indicating a potential downside of 2.68% from the current price [2]

Company Performance - MakeMyTrip (MMYT) closed at $94.96, with a daily increase of +0.48%, outperforming the S&P 500's loss of 0.13% [1] - The stock has decreased by 2.54% over the past month, underperforming the Computer and Technology sector's gain of 2.7% and the S&P 500's gain of 2.43% [1] Upcoming Earnings - The upcoming earnings disclosure is highly anticipated, with consensus estimates projecting revenue of $216.03 million, reflecting a 28.06% increase from the prior year quarter [2] - For the full year, earnings are expected to be $1.71 per share and revenue at $946.59 million, indicating changes of +40.16% and +20.97% respectively from the previous year [2] Analyst Estimates - Recent changes to analyst estimates for MakeMyTrip are important as they indicate shifting business trends, with upward revisions suggesting analysts' positive outlook on the company's operations and profit generation [3] Zacks Rank and Valuation - MakeMyTrip currently holds a Zacks Rank of 3 (Hold), with the Zacks Consensus EPS estimate remaining unchanged over the last 30 days [5] - The company is trading at a Forward P/E ratio of 55.27, which is significantly higher than the industry's average Forward P/E of 23.99 [6] PEG Ratio - The PEG ratio for MakeMyTrip is currently at 4.02, compared to the Internet - Delivery Services industry's average PEG ratio of 2.31 [7] Industry Overview - The Internet - Delivery Services industry, part of the Computer and Technology sector, has a Zacks Industry Rank of 169, placing it in the bottom 34% of over 250 industries [8]

Group 1 - MakeMyTrip (MMYT) closed at $105.76, with a +1.41% change, outperforming the S&P 500, which fell by 0.29% [1] - The stock has gained 11.54% over the past month, while the Computer and Technology sector lost 1.17% [1] Group 2 - The upcoming earnings disclosure is anticipated, with a consensus revenue estimate of $216.03 million, reflecting a 28.06% increase year-over-year [2] - For the fiscal year, earnings are projected at $1.71 per share and revenue at $946.59 million, indicating increases of +40.16% and +20.97% respectively [2] Group 3 - Recent changes in analyst estimates for MakeMyTrip are crucial as they indicate business trends and analysts' confidence in performance [3] - The Zacks Rank system, which incorporates estimate changes, has a strong track record, with 1 stocks averaging a +25% annual return since 1988 [4][5] Group 4 - MakeMyTrip's current Forward P/E ratio is 60.99, significantly higher than the industry's Forward P/E of 23.73 [6] - The PEG ratio for MMYT is 4.49, compared to the Internet - Delivery Services industry's average PEG ratio of 2.55 [6] Group 5 - The Internet - Delivery Services industry ranks in the top 21% of all industries, with a Zacks Industry Rank of 52 [7] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]

Company Performance - MakeMyTrip (MMYT) closed at $93.76, reflecting a -0.87% change from the previous day, underperforming the S&P 500's daily loss of 0.3% [1] - Over the past month, shares of MakeMyTrip gained 6.76%, outperforming the Computer and Technology sector's gain of 1.22% and the S&P 500's gain of 3.42% [1] Upcoming Earnings - The upcoming earnings release is projected to show revenue of $216.03 million, a 28.06% increase from the same quarter last year [2] - For the full year, analysts expect earnings of $1.71 per share and revenue of $946.59 million, representing changes of +40.16% and +20.97% from last year, respectively [2] Analyst Estimates - Recent adjustments to analyst estimates for MakeMyTrip reflect shifting short-term business dynamics, with positive revisions indicating analysts' confidence in the company's performance [3] Valuation Metrics - MakeMyTrip has a Forward P/E ratio of 55.31, which is a premium compared to the industry's average Forward P/E of 24.24 [6] - The company has a PEG ratio of 4.07, while the Internet - Delivery Services industry has an average PEG ratio of 2.32 [6] Industry Context - The Internet - Delivery Services industry, part of the Computer and Technology sector, has a Zacks Industry Rank of 164, placing it in the bottom 36% of over 250 industries [7] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]

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Core Insights - The report titled "Tourism Destination Market Insight: India (2024)" provides a comprehensive analysis of the Indian domestic and inbound tourism market, highlighting key trends and popular tourism types in the region [1][2]. Group 1: Market Analysis - The report offers an in-depth analysis of key trends, spending patterns, tourism construction projects, and foreign direct investments in India's tourism sector [2][4]. - It identifies main source markets for inbound tourism and discusses current and future opportunities and challenges for tourism businesses in India [2][3]. Group 2: Economic Impact - The report emphasizes the significance of the inbound and domestic tourism industry in India, detailing how it contributes to tourism industry growth and overall economic development [3][4]. - It explores key market destinations in India for global travelers, along with potential opportunities and challenges faced by the Indian tourism sector [3]. Group 3: Insights for Businesses - The report provides insights into developments in India's domestic and inbound tourism markets, using data to discuss future trends related to domestic trips, international arrivals, and traveler spending [4]. - It examines different profiles of global tourists and their travel motivations, offering insights into trends across various segments of the Indian tourism market [4]. Group 4: Key Topics Covered - The report covers several key topics including the Tourism Potential index, key trends, tourism construction projects, foreign direct investment, source markets, types of tourism, and destination focus & attractions [5]. - It also includes a risk and SWOT analysis relevant to the tourism industry in India [5]. Group 5: Featured Companies - The report features several companies involved in the Indian tourism sector, including SOTC, MakeMyTrip, Indian Hotels Company, Oberoi, Indian Railways, SpiceJet, Air India, and IndiGo [5].