MakeMyTrip Raises Q1FY25 Marketing Spend By 31%

MakeMyTrip released its unaudited financial and operating results for the first fiscal quarter ended June 30, 2024. The company reported a year-on-year (YoY) increase in net profit, surging 13.1 per cent to $21 million, compared to $18.59 million in the same quarter last year. The growth is attributed to broad-based expansion across its key verticals - air ticketing, hotel packages and bus ticketing.

The company also increased its spending on marketing and promotional activities, allocating $40.1 million during the period, a 31.0 per cent rise from $30.6 million in Q1 FY24.

Revenue, calculated as per IFRS saw a rise of 31.4 per cent YoY in constant currency, reaching $254.5 million in Q1 FY25, up from $196.7 million in Q1 FY24. Adjusted operating profit also experienced an increase, growing 29.9 per cent YoY to $39.1 million, compared to $30.1 million in the corresponding quarter of the previous fiscal year. 

The reported profit for Q1 FY25 was $21 million, which includes income tax expenses of $8.5 million due to a reversal of deferred tax assets.

The quarter under review saw MakeMyTrip’s gross bookings rise by 21.6 per cent YoY, totalling $2.38 billion. The air ticketing segment contributed to this growth, with revenue jumping 25.4 per cent YoY to $57.5 million. The hotels and packages business also showed robust performance, contributing $146.8 million to the company’s top line, marking a 27.5 per cent YoY increase.

The bus ticketing business continued its upward trajectory, with revenue increasing 17.2% YoY to $29.2 million, up from $24.9 million in the previous year's quarter. 

Commenting on the results, Rajesh Magow, Group Chief Executive Officer, MakeMyTrip said, “We are pleased to see a robust start to this fiscal year. We believe that the long-term growth story of India's travel and tourism sector is fuelled by multiple macroeconomic drivers like increasing government investments in travel infrastructure, rising disposable incomes of the middle class, and increasing propensity to travel. These drivers indicate that India's travel and tourism industry growth is expected to be higher than the country’s GDP growth rate. We aim to continue to drive our growth by capitalising on the shift from offline to online buying and expanding our customer base and wallet share.”