MakeMyTrip Q4 revenue up 49.6% to $47M; PAT rises to $2.9M

The NASDAQ-listed online travel services firm MakeMyTrip's (MMT) revenue for the fourth quarter ended March 31, 2012 grew 49.6 per cent to $47 million over the year ago period, reflecting strong growth in demand for online ticketing.

Net profit for the quarter rose nearly threefold to $2.9 million over the fourth quarter in the previous year while adjusted net income (profit for the period excluding employee share-based compensation costs, cost related to follow-on public offering, interest expense on the liability portion of preference shares, interest accretion on financial liability related to business combination, changes in the fair market value of embedded derivatives in the preference shares and income tax benefit [expense]) rose much faster to $9 million from $5.1 million in FY11.

"MakeMyTrip delivered strong financial results in the fourth fiscal quarter and full year despite a challenging operating environment. In the coming year we will continue to further our market leadership position through our core strength of enhancing the customers' experience," said Deep Kalra, chairman and CEO of MakeMyTrip Ltd.

MakeMyTrip competes with companies like Yatra.com and Cleartrip.com in India.

MMT's revenue less service costs increased 44 per cent YoY to $22.1 million in fourth quarter and increased 51.7 per cent YoY to $88.2 million for financial year ended March 31, 2012.

MMT has also launched some new initiatives to acquire more customers. One of them is Tripalong, a social application for travellers which can be integrated with users' social networks to map their travel itineraries – so that they can connect with friends while on the move. According to the company, the app has helped MMT gain more popularity.

It has further introduced the MakeMyTrip app for android and BlackBerry phone users and witnessed 40,000 downloads till date. Soon, the company will launch it on the iOS platform.

MMT has also initiated My Trip Rewards, a membership-by-invite-only loyalty programme, which has recorded 86,000 user registrations within a few months of its launch.

Operational performance

Air Ticketing: Revenue from air ticketing business increased 50.8 per cent to $20.9 million in the quarter ended March 31, 2012 from $13.9 million in Q4 FY'11. The revenue less service costs increased 28.6 per cent to $17.8 million in the quarter. According to the travel services firm, this was due to an increase in gross bookings of 19 per cent as well as an increase in net revenue margin from 7.7 per cent in the quarter ended March 31, 2011 to 8.4 per cent last quarter.

Hotels and Packages: Revenue from hotels and packages business increased 48.2 per cent to $25 million in the quarter. The revenue less service costs increased to $3.2 million in the quarter ended March 31, 2012 from $2.5 million in the quarter ended March 31, 2011. This was due to an increase in gross bookings by 51.8 per cent, which was partially offset by a reduction in net revenue margin from 11.6 per cent in the quarter ended March 31, 2011 to 9.6 per cent in the quarter ended March 31, 2012 as the cost of services in its overseas holidays business increased due to the weakening of the Indian currency.

Personnel Expenses: Personnel expenses almost doubled to $7.6 million in the quarter ended March 31, 2012. MMT said it was mainly due to employee share-based compensation costs of $2.7 million last quarter as against just $0.08 million in the year ago period. It was also due to increases in annual wages and average employee headcount. Excluding employee share-based compensation costs, personnel expenses as a percentage of net revenue increased by 44 basis points year over year and by 36 basis points quarter to quarter to 21.8 per cent.

Other Revenue: Other revenue increased to $1.1 million in the quarter ended March 31, 2012 from $0.7 million in the quarter ended March 31, 2011, primarily due to increased sale of rail tickets and bus tickets and advertisement income.