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MakeMyTrip On A Roll; Records Net Profit Of $4.82M For FY11

12 May, 2011

India’s top online travel agency MakeMyTrip has generated a net profit of $4.82 million for the year ended March 31, 2011, compared to a loss of $6.2 million in the year ended March 31, 2010.

Revenues rose 49.3 per cent to $124.7 million in the year, with both airline ticketing and hotels and packages divisions registering growth. The NASDAQ-listed company saw an increase in gross bookings by 58.6 per cent for airlines and 65.2 per cent in hotel and packing.

Revenues from MMT’s air ticketing business rose to $47.62 million while hotels and packages business grew 36.4 per cent to reach $74.6 million in the year ended March 31, 2011, from $50.3 million in the year ended March 31, 2010. MakeMyTrip’s fiscal 2011 outlook stated that revenues minus service costs would be between $59 and $61 million.

The company reported that FY11 adjusted operating profits of $4.6 million, up from $0.8 million in FY10, and stated that net revenue margins normalised in the fiscal and is now at 7.9 per cent.

“Fiscal year 2011 marked an important milestone for MakeMyTrip as we successfully transitioned into a public-listed company” said Deep Kalra, chairman and CEO. “Through this exciting transition, we remained focused on offering innovative products, good-value deals and improved booking experience for our customers, which enabled MakeMyTrip to maintain market leadership.”

Personnel expenses had come down to $14.4 million from $16.6 million in FY2009 and adjusted EBITDA was at $1.6 million. The rise in facilitation fees on travel insurance and sale of rail tickets and bus tickets led to an increase to $2.5 million in MMT’s ‘other’ revenue from $1.2 million in the year ended March 31, 2010.

Quarterly Highlights

MakeMyTrip recorded a rise of 48.5 per cent in revenues to $31.4 million in the quarter ended March 31, 2011. This is up from revenues of $21.1 million in the quarter ended March 31, 2010. For the quarter ended March, 2011, the company recorded a profit of $3.7 million, up from $1.62 million in the third quarter.

Net revenue margins for air ticketing and hotels and packages combined increased to 8.2 per cent in Q4 2011 versus 8 per cent in Q4 2010. Results from operating activities improved on a yearly basis to $1 million in Q4 2011 versus a loss of $1.2 million Q4 2010. Adjusted operating profit for Q4 2011 is now at $1.1 million, compared to a loss of $1.1 million in Q4 2010.

While the quarter saw revenues from air ticketing business increasing by 61.5 per cent to $13.9 million in the quarter, revenues from hotels and packages business touched $16.9 million.

According to the company, gross bookings for air ticketing and hotels and packages combined rose 52.4 per cent year-on-year to $201.2 million in Q4 2011. The number of transactions for air ticketing rose 12 per cent on a quarterly basis to 854,000 while hotels & packages reached 51,000, up by 1 per cent.

MakeMyTrip competes with Yatra.com and Cleartrip.com in India. Yatra.com overtook the company in number of unique visitors in the month of March, 2011, with 3.1 million unique visitors, compared to MakeMyTrip’s 2.97 million unique visitors and Cleartrip.com’s 2.13 million unique visitors. “While competition is growing, the overall market growth remains so compelling that in near-to-mid-term, OTAs will not be fighting for market share,” said Sandeep Aggarwal, senior internet & software analyst of Caris & Company.

Guidance

MakeMyTrip has stated that its full-year guidance range for revenue minus service costs will be between $86 and $89 million for the 2012 fiscal year. “The company’s guidance can turn out to be conservative as it has NT concerns on soft demand, infused by inflationary conditions in India and high oil prices,” said Aggarwal.


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MakeMyTrip On A Roll; Records Net Profit Of $4.82M For FY11

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