Online travel aggregator MakeMyTrip reported a narrowing of its net loss for the financial year 2023, while its operating profit clocked a substantial rise during the same period. For FY23, MakeMyTrip reported an adjusted operating profit of $70.3 million – an annual increase of 203% and the highest ever, recorded by the company.
Similarly, its net losses narrowed from ₹375 crores in FY22 to ₹92 crores in FY23, while its gross bookings for the same period rose by 122% annually to reach $6.6 billion (its highest-ever, and an increase when compared with $3.2 billion in the previous fiscal). For the fourth quarter of the financial year, the same rose by 80.7% annually to ₹1.7 billion. Its adjusted profit for the same quarter amounted to $19 million, an increase from the $12 million in the corresponding quarter in the previous year.
Expenses for marketing and sales promotion expenses nearly doubled 99.1% to $101.6 million during the same period, while customer inducement costs fell to $235.8 million. Its revenue rose by 67.7% annually to $148.5 million during the March quarter of 2023 as well.
“We are glad that our strategy of investing in the right areas coupled with our initiatives to optimize certain costs has helped us to preserve and strengthen our moat. We remain well positioned for the next fiscal year with a strong pipeline of product innovation to further enhance customer experience,” said Rajesh Magow, Group CEO of MakeMyTrip. He went on to comment that the recovery of travel aggregators and the hospitality sector in the post-pandemic era ensured that MakeMyTrip clocked a “robust” recovery in the demand for travels.
“We capitalized on this trend to deliver strong results with over 120% year on year constant currency growth in gross bookings. Our profitability expansion has also been significant, as we delivered a year-on year increase of over 200% in adjusted operating profit for the reported fiscal year 2023,” he added.
FY23 saw the firm’s revenue for air ticketing rise surged from $155.5 million in FY22 to $280.1 million during the year, while it recorded a profit of $5.4 million in the fourth quarter of the financial year. It marks an improvement from the corresponding quarter in the previous year, where MakeMyTrip recorded loss of $4.1 million.
“In the air ticketing business, we have been growing faster than the market on the back of our innovative product and brand strength. For two quarters in a row, our domestic passenger traffic is above pre-pandemic levels. International air bookings have seen an expectedly slow recovery through the year. The recovery is now in the 90s and we expect to get back to pre-pandemic volumes in the new fiscal year,” Magow said.
