Nasdaq-listed Indian traveltech company MakeMyTrip posted a net profit of $2 Mn in the September quarter (Q2) of the financial year 2023-24 (FY24) as against a loss of $6.8 Mn reported last year.
However, on a sequential basis, the company’s net profit nosedived from $18.6 Mn in the previous quarter – Q1 FY24, which the company attributed to the seasonality factors.
This was the fourth consecutive profitable quarter for the company.
MakeMyTrip’s revenue jumped 28.5% to $168.7 Mn during the quarter under review as against $131.3 Mn reported in Q2 FY23.
The company had generated a revenue of $196.7 Mn in Q1 FY24.
“While the second quarter of fiscal year tends to be a seasonally weaker period for leisure travel, we are pleased to report strong year-on-year revenue growth and expansion in adjusted operating profit,” said Rajesh Magow, group CEO of MakeMyTrip.
“Our innovative travel solutions, brand strength and ability to deliver superior value to our customers and our partners are helping us to drive profitable growth,” he added.
MakeMyTrip generated $48.6 Mn in revenue from its air ticketing business, which increased 22.7% year-on-year (YoY).
Meanwhile, revenue from its hotels and packages business jumped 30.9% YoY to $89.4 Mn in the quarter under review.
Its bus ticketing business generated $19.8 Mn in revenue in Q2 FY24, up 23% YoY.
MakeMyTrip’s gross bookings increased 23.8% YoY to $1,839.7 Mn in Q2 FY24 but it was a decline from $1,987.5 Mn in gross bookings witnessed in Q1.
MakeMyTrip’s expenses increased YoY during Q2 FY24. Its personnel expenses increased by 4.6% to $35 Mn in the quarter from $33.5 Mn the prior year’s quarter, primarily due to annual wage increases, said the company.
Meanwhile, service cost jumped 24.8% YoY to $40.3 Mn in Q2 FY24. The company attributed this increase primarily to the sustained elevated travel demand in India.
The traveltech major’s other operating expenses rose 69.4% YoY to $55.1 Mn in Q2, primarily due to a $12.6 Mn increase in operating expenses, including distribution costs, payment gateway charges, outsourcing fees and website hosting charges linked to the increase in bookings.
MakeMyTrip said that a $10 Mn impairment provision towards recoverable from Go Airlines also led to this rise.
However, it managed to keep its marketing and sales promotion almost flat at $25 Mn in the quarter under review as against $24.8 Mn in Q2 FY23.
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