The company’s net loss nearly doubled from $4.1 Mn in the March’s quarter
The total revenue of MakeMyTrip grew by more than 300% year-on-year to $142.7 Mn. The company’s revenue from its hotels and packages business accounting for 59% of the total.
Despite the optimistic consumer sentiment the higher prices for aviation fuel are still affecting the growth of the travel market: MakeMyTrip
Nasdaq-listed Indian travel tech company MakeMyTrip’s net losses decreased by 59 percent year-on year (YoY) up to $10 million during the quarter between April and June of the fiscal calendar year 2022-23 (FY23) due to the impact of a rise in the demand for travel during the summer holidays as well as a growing need for vacation travel during the post-pandemic recovery period.
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On an quarterly (QoQ) scale MakeMyTrip’s net loss nearly tripled from $4.1 million reported in March of FY22.
The company also experienced an 334.7 percent YoY increase in its total revenue , which was $142.7 Mn in the first quarter of FY23, which was up from $32.8 Mn in the previous quarter of the year. On the QoQ basis, revenues jumped by 61 percent.
The hotel and packages contributed around 59% of the overall revenue. Revenue from this segment increased to $84 Mn in the first quarter of FY23, up from $11.4 Mn in Q1 FY22.
The second largest factor in the revenue was the airline ticketing division, which raked in the company with a profit in the range of $30.9 Mn in the first quarter of this year which was up 110% over $14.7 Mn in the same quarter last year.
“While the sentiment of consumers about travel remains very positive, rising aviation fuel prices that lead to higher airfares continue to affect the growth of the travel market when compared to pre-pandemic levels, especially in relation to international travel” declared Rajesh Magow, group CEO of MakeMyTrip.
MakeMyTrip also announced net bookings totalling $1,612.5 Mn for Q1 FY23 as compared to $286.7 Mn in the Q1 of FY22. In a QoQ perspective, it grew by 59% over $1,012.3 Mn recorded in the previous trimester of FY22.
Due to an increase in the annual wage as well as higher cost of share-based compensation and share-based compensation costs, the company’s employee expenses in the first quarter of FY23 grew by 21%, to $32 million from $26.5 Mn in the previous quarter.
However, MakeMyTrip also invested $24.8 Mn on sales and marketing during the month of June, nearly five times the amount of $5.1 Mn in Q1 FY22.
The rise was due to branding and events that followed the strong growth in the demand for domestic travel following the impact of the pandemic waned, MakeMyTrip said in a statement.
Other operating expenses rose 179.3 percent in the quarter to $31.5 Mn in the first quarter of FY23 compared to $11.3 Mn in the same quarter last year. The increase was principally due to the increase in $16.5 Mn in payments gateway fees web hosting fees, as well as outsourcing charges.
Despite the increased travel-related demand, the company has stated again that the severity of consequences of the pandemic to its operations, its results from operations, cash flows , and future growth plans remain in doubt
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MakeMyTrip shares are trading up by 3 percent at $28.7 in the early hours of trade on Nasdaq.