MakeMyTrip Limited

Good evening, everyone. We'll just wait for a minute for everyone to join in. Hello, everyone.

I'm Vipul Garg, Vice President, Investor Relations at MakeMyTrip Limited. And welcome to our fiscal 2023 fourth quarter and full year earnings webinar. Today's event will be hosted by Deep Kalra, our company's founder and chairman. Joining him is Rajesh Magu, our co-founder and group chief executive officer, and Mohit Kabra, 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 the 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 this date, 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 12, 2022. Copies of these filings are available from SEC or from the company's Investor Relations Department. I would like to now turn the call over to Rajesh. Over to you, Rajesh.

Thank you, Vipul. Welcome everyone to our fourth quarter and full year earnings call of fiscal 2023. Fiscal 2023 has been a robust recovery year for the Indian travel industry. We witnessed consumer sentiment to travel improving with each successive quarter throughout fiscal year 2023. Travel industry was quite relieved to see demand for each of the travel segment with leisure business, VFR, that is visiting friends and relatives, students, pilgrimage, mice, et cetera, recovering nicely during the year, despite macroeconomic headwinds in the recent quarters. We at Make My Trip also saw robust recovery of all our business segments barring outbound travel, recovering nicely to pre-pandemic levels. In fact, some of the categories like premium segment of hotels, domestic flights, homestays, and domestic packages have already crossed pre-pandemic levels. This demand momentum coupled with our optimized cost structure helped us deliver strong performance for the quarter and full year. We achieved our highest ever annual gross booking value and adjusted operating profit during the reported fiscal year 23. Gross booking value for the year was $6.6 billion, growth of 122% on constant currency basis, while adjusted operating profit for the year was $70.3 million, growing to over three times as compared to fiscal 2022. As per WTTC report, over the next decade, global travel and tourism GDP is forecasted forecasted to grow at about 5.8%, outpacing the overall economy growth to reach $14.6 trillion by 2032, thus contributing 11.3% to total global economy. India's tourism sector is expected to grow faster, owing to growing demand from the middle class, higher disposable incomes, favorable demographics, and higher investments in travel-related infrastructure. Emerging technologies will be at the forefront in driving online travel penetration with new innovations to make online travel booking extremely simple and convenient, helping push adoption from smaller cities. We at MakeMyTrip will continue to drive this change and capitalize on the opportunity that lies ahead. Our tech platforms built over the years are very robust, reliable, and scalable provide secure and delightful experience for the customers on our B2C offerings. More recently, leveraging our core tech capabilities, we built new platforms like MyBiz, MyPartner, to cater to B2B corporate and B2B2C demand segments respectively. Our platform mindset in building our tech stack has helped us launch all these new offerings over the last few years with amazing efficiency and agility. These investments will help us drive future growth and profitability. Besides building new platforms and launching mikmatrip.ae, which is our GCC platform, we have now built almost fully automated, fully self-serve model of our post-sales interface. As a result, we now offer the best in industry post-sales capability across our entire line of businesses does improving customer experience for post-sales use cases. Our data science and engineering capabilities have enabled us to deliver delightful personalized and contextualized experience to our customers. Leveraging these capabilities with insights driven mindset enabled us to launch several industry first features for our consumers. Most of our new offerings are backed by rich data science capabilities which we employ cutting edge AI ML models to bring value added differentiated features. Consumer focus products like zero cancellation, fair lock, trip guarantee, hotel ranking, et cetera, and supply focus products like RevMax, a paid yield management tool for bus operators, demonstrate our superior capabilities in data sciences, AI and ML. A key part of our growth strategy to drive digital penetration of travel services deeper into the country beyond tier one and tier two cities. We recently collaborated with Microsoft to make travel planning more inclusive and accessible by introducing voice assisted booking in Indian languages. The new conversational flow powered by Microsoft Azure AI and cognitive services will converse with the user to offer personalized travel recommendations based on their preferences, curate holiday packages based on variable inputs like occasion, budget, activity preferences, time of travel, et cetera, and eventually help book these holiday packages. Similarly, it could help book flight tickets with a few simple conversational steps, including payment. This can drive adoption of online travel ecosystem for almost every strata and demographic across the country. Currently, the beta version of this integration has been introduced in Hindi and English for flights and holiday customers. Apart from tech capabilities, one of our biggest strengths is the brands that we have created over the years. All three of our brands have the highest top of mind recall when it comes to travel services, with a cumulative transacted consumer base of over 64 million users. Our engagement matrix and repeat rates are comparable with the global benchmarks, which is testimony of trust in our brands. As for business segments now, starting with air business, recovery momentum in aviation sector continued during the quarter, despite the low leisure season quarter. There was an uptick in both domestic and international air traffic, especially in the month of March. We've been growing faster than the market on the back of our innovative product and brand strength. Also, for two quarters in a row, our domestic flown passenger traffic is above pre-pandemic levels. International air bookings have seen an expectedly slow recovery throughout the year. The recovery is now in the 90s, and we expect to get back to pre-pandemic volumes in the new fiscal year. We continue to innovate product features For instance, we not only scaled up our Fairlock feature to cover 95% of domestic flights, but also launched this feature for international itineraries with about 95% coverage. While according to Center of Aviation, CAPA, next year outlook for Indian domestic aviation sector is quite positive with a projected growth of about 20% year on year. Recently, Go First Airlines having a small market share of about 6%. filed for voluntary insolvency resolution proceedings before the National Company Law Tribunal, NCLT, in India, seeking interim relief, citing failure of the global engine supplier to replace the faulty engines from time to time, resulting into grounding of half of their fleet and consequent operational and financial issues. Interim relief was granted by NCLT, and the airline is making all possible efforts to resume the operations. In the short term, this event has affected the supply, although we expect it to be temporary, as the other airlines in the market have started to fill the supply gap with additional deployment of planes on key routes. Our accommodation business, which includes hotels, packages, and homestay segment, continues to shape up well. Leisure travel has gone beyond pre-pandemic levels, and corporate travel has recovered strongly on the back of conferences, exhibitions, and events. With our continuous focus on supply expansion, we have surpassed our pre-COVID supply with more than 71,000 sellable accommodations listed on our platform. This has helped us increase our market share and further strengthen our supply mode. With international outgoing travel picking up, we have now started to expand our direct contracting for destinations where Indian tourists travel frequently. Vietnam is one such example of a new emerging destination where we are now building inventory through direct supply contracts to deliver better value to our customers. Gross booking for accommodation business has surpassed the pre-pandemic levels on the back of strong growth in premium and medium, mid-premium category of hotels. Our endeavor has been to build a platform that is innovative, intuitive, simple, and delivers the best value to the customer. During this quarter, we launched book at zero, which is an industry first initiative where customer can now reserve their preferred property without worrying about upfront payments and pay closer to the travel date. They're solving for any anxiety related to uncertain travel plans and offering huge flexibility to the customers. This feature is now available for all properties across India and outside India. This is helping us change the consumer behavior to book in advance, which will help better yield management for our partners. We continue to scale our homestays business with leisure destinations contributing to most bookings. To discover and promote properties at drivable distance, we launched Hidden Gems. This feature has been built on interactive maps to improve the discoverability. To make decision-making informed and seamless for homestays, we introduced some other features showcasing information related to food and dining at the property. Our holiday packages business has also continued to scale up and has already surpassed pre-pandemic levels. Coming to our bus ticketing business, continues to deliver strong results. We are now starting to see some buoyancy in the supply ecosystem with multiple large operators confirming new fleet orders to OEMs. and addition of new EV intercity buses by newer players. A few large bus operators who had paused or shrunk their operations post the COVID lockdown have restarted during the quarter with an effort to get the full fleet back on the roads. With favorable macro environment like new expressways and highway expansion, demand growth due to more in-office working, especially in IT companies in the South India and easing of the supply constraints in motor vehicles production. We expect capacity expansion in intercity buses during this financial year. Product-related initiatives continue to focus on driving online penetration for the category and enhancing customer experience. The Regional Transport Corporation bus booking experience has been further improved and customized to each RTC. This has improved the conversion rates for RTC bookings leading to an increase in the rate of new customer acquisition. Further, in non-traditional bus markets like Central and East India, we have added significant inventory to drive the penetration. We intend to double down on these efforts to make Redbus truly pan-national with meaningful business contributions coming from every region in the country. International markets are maintaining their growth momentum and now contribute upwards of 10% of our overall bus revenue. Our other ground transport services, such as intercity cabs, rail tickets, etc., continue to scale well. This segment is helping us acquire new users of the platform. We are investing in this business as we foresee an opportunity to disrupt this segment through technology interventions, innovating offerings, and supply consolidation. We opened our trip guarantee offering for users who haven't booked their train ticket from MMT platforms. to further expand our reach to real users. Our MyPartner B2B2C platform where we offer both flight and accommodation booking is gaining positive traction from our affiliate partners. Engagement levels from existing partners are improving as we continue to ramp up onboarding new partners every quarter. Business travel is gradually normalizing and we continue to add more capabilities on our both MyBiz and Q2T platforms. We recently completed end-to-end integration flow with Darwin Box, giving complete solution to the corporates from travel request to expense management. Our revamp portal of Q2T has now gone live and our MyBiz platform is now ranked as second best travel management software globally and first for small business segments SME by G2, which is a global peer-to-peer review platform. With the scaling up of our corporate and B2B2C platforms, we are now able to target all customer demand segments directly and more effectively. With this, let me now hand over the call to Mohit for financial highlights of the quarter.