MakeMyTrip Limited

Hello, everyone. I'm Jonathan Wong, Vice President of Investor Relations at Make My Trip Limited, and welcome to our fiscal year 2022 second quarter earnings webinar. Today's event will be hosted by Deep Kalra, our company's founder and group executive chairman. Joining him is Rajesh Mago, our co-founder and group chief executive officer, and Milvik Kamra, our group chief financial officer. As a reminder, this live event is being recorded by the company and will be made available for replay on our IR website shortly after the conclusion of today's event. At the end of these prepared remarks, we will also be hosting a Q&A session. Furthermore, certain statements made during today's event may be considered forward-looking statements within the meaning of the safe harbor provision of the U.S. Private Securities Litigation Reform Act of 1995 These statements are not guarantees of future performance, are subject to inherent uncertainties, and actual results may differ materially. Any forward-looking information relayed during this event speaks only as of the state, and the company undertakes no obligation to update the information to reflect changed circumstances. Additional information concerning these statements are contained in the risk factors and forward-looking statements section of the company's annual report on Form 20F, filed with the SEC on July 13th, 2021. Copies of these filings are available from the SEC or for the company's investor relations department. I would now like to turn the call word to Deep to begin our webinar for today.

Thank you, Jonathan. Welcome, everyone, to our second quarter earnings call for fiscal year 2022. I'd like to begin today by wishing everyone good health during the ongoing COVID-19 pandemic. On our last call in late July, we shared that India was already seeing a massive reduction in the number of daily new infections since the second wave peaked in early May this year. The good news is that new daily infections have remained relatively muted, with about 16,000 daily new cases on a seven-day average basis. We believe helping to drive this progress has been the dramatic increase in vaccinations since late July and natural immunity from unreported infections during the second wave. As of last week, over a billion doses of the vaccine had already been administered across the country, which is a significant global landmark. Nearly 300 million of our own citizens are now fully vaccinated, and we expect that number to rise as many will receive their second dose in the coming months. It's encouraging to see that promoting social distancing and use of masks is gradually helping to restore normalcy, which has quickly spilled over to travel demand. As of last week, the Directorate General of Civil Aviation, or DGCA, had lifted the cap for domestic flights, restored domestic seat capacity back to 100%, and done away with many other restrictions. While scheduled international flights remain suspended for now, India has implemented travel bubble arrangements with 28 countries, including the US, Canada, the UK, many EU countries, the UAE, Qatar, and the Maldives. With declining COVID cases across India starting November 8th, the US will allow fully vaccinated Indian travelers to enter. similarly the uk had already relaxed quarantine requirements since october 11th india has also reopened its borders to fully vaccinated inbound tourists on chartered flights in mid-october furthermore all fully vaccinated inbound travelers can now forego mandatory home quarantine if they upload a negative COVID-19 RT-PCR report conducted within 72 hours of travel, helping to further ease the hassle of travel during the pandemic. As for our domestic accommodations business, more than 90% of our top selling hotel properties are open and actively taking bookings. The availability of hotel supply is helping to serve the strong recovery across leisure cities. as we recently registered our highest single day of check-in since the pandemic started. In fact, across many leisure cities, we have now surpassed pre-pandemic room nights booked on our platform. As for our domestic bus business, we've also witnessed steady recovery in supply with more than three quarters of the private bus operator capacity and about 85% of government-operated bus capacity restored entering October. As you can see, we believe that domestic travel is rapidly coming back, owing to high vaccinations and low daily new infections. As we sit here today, the team and I are increasingly excited for the prospect of rising travel activity, starting with this current festive season and in the quarters to come, especially once more people are fully vaccinated and cross-border travel becomes safe and nearly as effortless as it was before the pandemic. As I've shared before, travel is innate in all of us humans. Our mission is to help facilitate the best possible end-to-end experience for our customers from travel research and booking all the way through to on-trip support to help fulfill this need in the digital age. We hope we've seen the worst of this pandemic and we'll get back close to pre-pandemic domestic demand recovery in the coming quarters. We're even more enthused by the fundamental shift in buying behavior that has taken place during the last six quarters. A recent comment from Red Seer Consulting is predicting that e-commerce users in India will reach 500 to 600 million by 2030, up from the roughly 150 to 200 million today. This prediction, which is likely to play out, will place India only second to China in terms of the overall size of online shoppers, equating to an expected TAM, or total addressable market, of $350 billion. We fundamentally believe that the long-term upside for our business remains huge, and we continue to adapt and drive innovations to keep pace with ever-changing online travelers' needs. I believe that it is in this relentless focus on customer experience with our brands that will help cement the Make My Trip Group's market leadership position in the long run. Now, I'd like to ask Rajesh to share some more color on our fiscal second quarter.

Thank you, Deep. Hello and happy festive season to everyone. I sincerely hope you're all staying safe and healthy during this ongoing pandemic. As Deep mentioned, we are very enthused by the strong pent-up demand seen for travel following the devastating second wave. The good news is the momentum we had seen immediately following peak infections in early May had continued throughout the reported quarter. Even better news is that the country has so far managed to prevent any flare-up of a third wave of infections thanks to the quick and large-scale vaccination program that has seen over a billion doses of approved COVID-19 vaccines administered so far. Throughout much of Q2, we've also seen the gradual and steady return of domestic travel supply to help meet the strong pent-up demand. As mentioned earlier, with demand recovery, we were confident of getting back to turning profitable with our optimized cost structure, hence declared positive adjusted operating profits in the quarter. As you can see in Q2, we continue to write the strong recovery momentum that began following the early May infections peak for the lean travel quarter when compared to the same quarter a year ago, we managed to achieve nearly 2.6 times the volumes in segments in our air ticketing business, nearly 4.8 times the volumes in room nights in our hotels and packages business, and nearly 2.9 times increase in volumes of tickets within our bus ticketing business. When compared to the previous quarter, we managed to achieve nearly 2.5 times the volumes in air ticketing, nearly 2.8 times the volumes in hotel and packages, and nearly 2.1 times increase in volumes of tickets within bus. This was achieved as the country did not fully shut down during the second wave and thus the business recovery momentum seen in June continued sequentially all throughout q2 now allow me to provide some current quarter today trends by line of business starting with domestic hotel and packages which is seeing an 80 recovery in october so far today nearly 90 percent of domestic hotel room capacity is open at our top selling hotels which includes virtually all chain hotels across the country while the early phases of recovery was driven by the higher end branded hotels and to drivable leisure destinations, we are happy to see that the domestic recovery is now broadening out to include budget hotels, business destinations, and flyable leisure destinations. In addition, we are seeing domestic room nights booked at all major chains on our platform, growing year on year, and also seeing business in many leisure destinations have either fully recovered or exceeded pre-pandemic levels of volumes. As for our alternative accommodation business, in October, we've seen recovery of nearly 85% when compared to the same month pre-pandemic with bookings at villas significantly higher than pre-pandemic. Following the peak of second wave, our team prepared for the expected pent-up demand for domestic travel. We launched the Luxe Hotels Collection by curating and offering customers over 250 ultra-premium hotels and enhance the listings content to drive better conversions. We also launched Lux packages with these premium hotels to offer special amenities and features to enrich customer stay experience. As for brand Goibibo, we improved the location and points of interest to help customers find hotels easier. Within the booking funnel, we introduced travel insurance to aid in cross-selling. Similarly, for our alternative accommodations experience, we improved the discoverability of properties with a new landing page in our dedicated homestays funnel and introduced a new entry point within our main hotels funnel. Now, let me share some of the highlights from our air ticketing business. Where the market's recovery of passenger flown now stands at 63% versus pre-pandemic peak in January of 2020. As expected, the domestic air market had steadily improved as demand for travel sharply returned in line with the containment of new infections. Even more encouraging is that on a book basis, October month to date, we are seeing a 90% recovery so far, indicating the strong travel demand for this year's peak travel festive season, where we are seeing top sectors booked like Delhi, Goa, Mumbai, Goa, and Hyderabad, Goa, all exceeding pre-pandemic levels already. Naturally, as the clear market leader, our performance outpaced market, as we have logged a 72% recovery so far in October, on a daily flown basis. While international, outbound flights are still fairly restricted. We have also seen traction in destinations that are open to vaccinated Indian travelers. We expect as more countries open their borders, outbound travel will once again be a fast driver of growth for our air ticketing business. In the meantime, during Q2, we continue to enhance our shoppers experience by introducing a quick book feature on Goibibo's mobile website. Furthermore, we continue to broaden our offerings with armed forces, student, senior citizens, and other special affairs. We also launched a 100% refund policy to travelers who are tested positive for COVID-19 and also enabled the upload of vaccination cards into our apps, making transit a bit more effortless. We also recently announced our partnership with Hopper, one of the top travel booking apps in the U.S., for flights, hotels, and car rentals to help travelers save money with personalized recommendations and flexible booking capabilities. Through this partnership, we aim to further enhance the flight booking experience by boosting our recently launched price lock feature. Hopper's price freeze technology will power MakeMyTrips price lock feature and enable customers to lock in flight fares for up to seven days while they are in the process of firming up their travel plans. Now, I would like to share an update on our red bus business, where recently in late October, we've seen a recovery of about 70% of pre-pandemic levels with some regions like eastern and northern parts of the country seeing 130% and 90% recovery, respectively. Today, nearly 75% of all private bus operators and 84% of government and regional transport corporation operators supply are back online. During the quarter, We work closely with multiple operators, leveraging our real-time demand data to help them add the right inventory on key routes to better optimize resources during the ongoing recovery. Within the bus ticketing business, we also witnessed firsthand the rapid digitization caused by pandemic, which has helped us gain new customers. Lastly, We had previously announced PRIMO, the program for top rated bus operators to showcase their onboarded services. I'm glad to announce that today we have more than 800 buses co-branded as PRIMO buses on the road across India. Naturally, we have also seen great amount of interest and bookings for this experience from our user base. Now I would like to move on to share an update on our other ground transportation business, which includes rail ticketing and cab rides. During the second quarter, our standalone other ground transportation business also recovered to 85% of pre-pandemic levels and has also helped contribute to nearly 25% of overall new users to our platform. Within our intercity and airport transfer cabs business, we have reworked the funnels functionality to offer greater categories of cabs and vendors, introduced premium cab offerings with standardized amenities and train drivers. As for our rail ticketing business, We also launched trip guarantee bookings, which offers a 3x value back to customers in case the desired real ticket remains unconfirmed, allowing them to book last minute and more costly alternatives like flights, cabs or buses to undertake their journey. Given the early successes we have seen for this product on MakeMyTrip, we are now rolling it out to Goibiba users as well. Additionally, the free cancellations feature available with real ticketing offers greater Flexibility to customers to cancel rail tickets in the last minute if they wish to without paying high penalty charges. Lastly, we are seeing good traction on corporate and SME travel revival. In fact, in October, we have seen nearly full recovery versus pre-pandemic. Helping to drive the strong recovery is the conversion of our new accounts pipeline during Q2 as the team acquired nine new large enterprise accounts. 201 new mid-sized accounts and 385 new SMEs, helping us to surpass pre-pandemic level of active customers using our services and reach an all-time high in active accounts in September. We continue to see industries like e-learning, real estate, biotech, and IT services making a full recovery in corporate travel relative to pre-pandemic days, as clients see the need to deploy their sales team for in-person client meetings. As you can see, we are excited to see the very fast and strong recovery for travel demand as shown in our results for Q2 and continuing into the festive season of Q3 so far. Going forward, we plan to continue to position our products and experiences to capture this inevitable pent-up demand for travel, whether leisure or business, and leverage our optimized operating costs to retain and expand our market leadership in years to come. With that, I would like to hand the call over to Mohit to share more color on our financial results in Q2.