MakeMyTrip(US:MMYT)2025-01-23 13:30Financial Data and Key Metrics Changes - The company reported an all-time high in quarterly gross bookings, revenue, and adjusted operating profit during Q3 fiscal 2025, with adjusted operating profit reaching $46 million, a year-on-year growth of about 38% [5][20]. - Adjusted operating profit margin as a percentage of gross bookings was 1.76%, an improvement from 1.6% in the same quarter last year [20]. - Gross booking value increased by 26.8% year-on-year in constant currency terms, compared to 22.9% in the first half of the fiscal year [5][20]. Business Segment Data and Key Metrics Changes - Air ticketing gross bookings for the quarter were $1.5 billion, reflecting a year-on-year growth of 23.1% in constant currency [21]. - Hotels and Packages segment gross bookings reached $681.5 million, a growth of 23.4% year-on-year in constant currency [22]. - The bus ticketing business saw gross bookings of $328.9 million, growing at 23.6% year-on-year in constant currency [24]. Market Data and Key Metrics Changes - The international air ticketing revenue grew over 32% year-on-year, while international hotels revenue surged over 63% year-on-year, indicating strong growth in the international outbound business [8][20]. - The domestic air market saw a growth of nearly 9% year-on-year on a flown basis, with the company maintaining a market share of over 30% [21]. Company Strategy and Development Direction - The company is focusing on enhancing customer experience through new product features, such as part payment options for international air tickets and value bundles for international flights [9][10]. - The strategy includes expanding into emerging markets and enhancing supply depth in pilgrimage cities to cater to growing spiritual tourism [11][14]. - The company is also investing in technology and customer experience, including the expansion of its Gen AI strategy with the Myra chatbot for accommodation products [13][75]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the continued growth of the travel sector, driven by rising income levels and changing consumer behavior towards discretionary spending [4][5]. - The company anticipates that macroeconomic factors could impact growth, but remains optimistic about outpacing industry growth rates [49][50]. - Management noted that while there are supply challenges in the domestic air market, improvements are expected in the coming quarters [32]. Other Important Information - The company has a strong cash position of over $700 million, which will be leveraged for potential growth opportunities and stock buyback programs [26]. - A business transfer agreement was signed to acquire the Happe expense management platform, enhancing the company's corporate travel and expense management solutions [26]. Q&A Session Summary Question: Outlook for air travel growth in 2025 - Management acknowledged ongoing supply constraints in the domestic air market but noted improvements are expected in the coming quarters [32]. Question: Take rate changes and competition from Indigo - Management clarified that the decrease in take rates is largely seasonal and not indicative of competitive pressure from Indigo [35]. Question: Future EBIT margin expectations - Management aims to reach an adjusted EBIT margin of 1.8% to 2% in the medium term, with ongoing cost control measures [39]. Question: Demand strength across customer segments - Management confirmed that all customer segments, including budget and premium travelers, are experiencing growth [90].