MakeMyTrip(US:MMYT)2021-07-12 16:00Revenue Recognition - The Group recognizes revenue from travel services upon transfer of control, typically at the date of departure for tours, check-in for hotels, ticket issuance for airlines, and journey date for bus tickets [464]. - Income from airline ticket sales is recognized on a net basis when the ticket is issued, reflecting the performance obligation satisfaction [465]. - Revenue from hotel reservations is recognized on a net basis at check-in, while income from tours and packages is accounted for on a gross basis [467]. - The Group's loyalty programs allocate a portion of revenue to loyalty points, which are recognized when redeemed or expired [473]. - Revenue is recognized net of cancellations, refunds, discounts, and taxes, with specific treatment for airline ticket cancellations [486]. Impact of COVID-19 - The COVID-19 pandemic has significantly impacted the travel industry, affecting the Group's financial estimates and asset valuations [500]. - Revenue for fiscal year 2021 was $163.4 million, a decrease of 68.0% from $511.5 million in fiscal year 2020, primarily due to the impact of the COVID-19 pandemic [554]. - Revenue from the air ticketing business decreased by 67.3% to $57.0 million in fiscal year 2021, with adjusted margin decreasing by 67.9% to $80.2 million [555]. - Revenue from hotels and packages decreased by 71.2% to $68.0 million in fiscal year 2021, with adjusted margin decreasing by 81.3% to $67.5 million [556]. - Revenue from bus ticketing decreased by 61.7% to $24.9 million in fiscal year 2021, with adjusted margin decreasing by 69.8% to $22.9 million [559]. - Other revenue decreased by 62.7% to $13.6 million in fiscal year 2021, with adjusted margin decreasing to $13.6 million [560]. Financial Performance - Operating activities resulted in a loss of $67.7 million in fiscal year 2021, a significant improvement from a loss of $429.4 million in fiscal year 2020 [569]. - Adjusted Operating Loss for fiscal year 2021 was $18.0 million, compared to an Adjusted Operating Loss of $69.9 million in fiscal year 2020 [569]. - The loss for fiscal year 2021 was $56.0 million, down from a loss of $447.5 million in fiscal year 2020 [572]. - Adjusted Net Loss for fiscal year 2021 was $9.2 million, compared to an Adjusted Net Loss of $86.5 million in fiscal year 2020 [572]. - Diluted loss per share improved to $0.52 in fiscal year 2021 from $4.26 in fiscal year 2020 [573]. Expenses and Cost Management - Service costs decreased to $22.3 million in fiscal year 2021 from $154.3 million in fiscal year 2020, reflecting lower travel demand [562]. - Personnel expenses decreased by 18.6% to $105.7 million in fiscal year 2021 due to cost-saving measures [563]. - Marketing and sales promotion expenses decreased by 86.4% to $22.7 million in fiscal year 2021, due to optimization strategies in response to the pandemic [564]. - Other operating expenses decreased by 72.5% to $51.1 million in fiscal year 2021, primarily due to reduced payment gateway charges and outsourcing fees [566]. - Goodwill impairment charge was nil in fiscal year 2021, compared to $272.2 million in fiscal year 2020 due to the pandemic's impact on the travel industry [568]. Cash Flow and Liquidity - As of March 31, 2021, cash and cash equivalents totaled $449.9 million, including net proceeds of $224.0 million from the issuance of the 2028 Notes [595]. - Net cash generated from operating activities was $64.5 million in fiscal year 2021, a significant increase of $177.2 million compared to a net cash used of $112.7 million in fiscal year 2020 [609]. - Cash used in investing activities was $118.9 million in fiscal year 2021, including $155.5 million invested in term deposits with banks and $8.1 million in technology-related development costs [612]. - Cash generated from financing activities was $219.4 million in fiscal year 2021, primarily from the issuance of the 2028 Notes [615]. - The company believes current cash and cash equivalents, along with cash flow from operations, will be sufficient to meet anticipated working capital requirements for the next 12 months [604]. Financial Position and Assets - Trade and other receivables decreased from $56.1 million as of March 31, 2020, to $27.3 million as of March 31, 2021, primarily due to reduced receivables from airlines and corporate customers [598]. - The balance of cash and cash equivalents at the end of fiscal year 2021 was $295.1 million, excluding $154.9 million of term deposits not classified as cash [607]. - Financial assets carried at fair value as of March 31, 2021, amounted to $5.4 million, reflecting investments impacted by the COVID-19 pandemic [626]. - The total contractual obligations as of March 31, 2021, amounted to $266.0 million, with significant portions due beyond five years [621]. - The company has secured bank loans totaling $824,000, with $735,000 as principal and $89,000 as interest, due in various time frames [621]. Accounting and Reporting - The Group accounts for business combinations using the acquisition method, assessing whether the acquired activities meet the definition of a business [501]. - Goodwill represents the excess of the acquisition cost over the fair value of identifiable assets, liabilities, and contingent liabilities of the acquiree [504]. - Intangible assets acquired in a business combination are measured at fair value and amortized over their estimated useful lives, which range from 2 to 10 years depending on the asset type [507]. - The Group recognizes loss allowances for expected credit losses (ECLs) on financial instruments, measuring them at an amount equal to lifetime ECLs for trade receivables and contract assets [509]. - The company is currently evaluating the impact of new accounting standards effective from April 1, 2022, including amendments to IAS 1 and IAS 16 [645][650].