MakeMyTrip Limited

You have joined the meeting as an attendee and will be muted throughout the meeting. 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 US Private Securities Litigation Reform Act of 1995. These statements are not guarantee 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 this date, and the company undertakes no obligation to update the information to reflect changed circumstances. Additional information concerning these statements is contained in the Risk Factors and Forward-Looking Statements section of the company's annual report on Form 20-F, filed with the SEC on July 2, 2024. Copies of these filings are available from the SEC or from the company's Investor Relations Department. I would like to now turn the call over to Rajesh for his remarks. Over to you, Rajesh.

Thank you, Vipul. Welcome everyone to our first quarter call for fiscal 2025. We are pleased to share that we started the financial year on a strong note with the highest ever quarterly gross bookings, revenue and adjusted operating profit with robust growth across all our businesses. We delivered these strong numbers despite the late pickup of the season for leisure travel due to general elections in April. Gross booking value for Q1 was more than $2.4 billion with growth at 22% year-on-year in constant currency terms. And the adjusted operating profit was $39.1 million, registering a growth of about 30% year-on-year. Our strategy of catering to various travel use cases and targeting different demand segments on multiple customer touchpoints is helping us deliver sustained growth. A wide spectrum of travel products is also helping us increase our share of the wallet of Indian travelers' overall travel spend. We now have a lifetime transacted user base of 75 million across all our three brands. To build stronger loyalty, we relaunched our flagship loyalty program, MMT Black, with simplified two tiers and with new benefits such as guaranteed room upgrades and meal upgrades for participating hotels and homestays, immediate my cash credit post booking, and no cap on the number of times one can avail discounts on flight add-ons, such as zero cancellation, in-flight meals, free day change, etc. Although it is early days of the new MMT Black program rollout, we've already seen improvement in the operating metrics compared to the earlier version, indicating better value for our Black customers. On macroeconomic front, India's robust economic growth has boosted the disposable income of its growing upper middle class, leading to higher disposable income in their hands. As a result, there is a visible increase in spending on discretionary services, including travel and tourism. On the other hand, the lower middle class is also a growing number, acting as a booster for domestic travel. Besides, the increasing number of households headed by the younger generations is helping drive a cultural shift towards taking more breaks in a year. The rise of flexible working arrangements has also influenced travel behavior. Many people are combining work and leisure through vocations and extended stays in different locations. The shift in work culture allows individuals to travel more frequently without compromising their professional responsibilities. As per a McKinsey report, India is currently the world's sixth largest domestic travel market by spending, with growing middle class powering travel spending, growth of roughly 9% per year. India's domestic market could overtake Japan's and Mexico's to become the world's fourth largest by 2030. Domestic air passenger traffic in India is projected to double by 2030, boosted by government initiatives to build infrastructure and connect underserved domestic airports. Let me now turn to the business segment, starting with our air ticketing business. A positive development in this quarter was international outbound travel. As reported earlier, international outbound travel recovered fully in fiscal year 24, but in this quarter, we witnessed robust growth of 25% year-on-year in international air segments. It now contributes over 37% to our air ticketing revenue. Long-term outlook on outbound travel from India is also very positive with fast-growing pools of first-time tourists. Many short haul and long haul destinations are investing to increase their awareness for Indian tourists, considering India a very important source market. A couple of emerging destinations like Turkey and Kazakhstan, the number of Indian tourists has significantly grown and touched new highs. For Kazakhstan, India is now the third largest source market, witnessing a three-fold increase in Indian tourists compared to 2021. For Turkey, the number of tourists from India has surged 34% in the first five months of 2024 compared to the same period last year. We continue to invest in this opportunity and aim to increase our share of revenue from this segment over the years. In the domestic air market, the supply situation improved markedly. The total number of domestic departures saw a slight increase in Q1 compared to the previous quarter. We expect the domestic supply situation to improve further from the second half of the financial year. The growth in the domestic air market continues to be muted. On a flown basis, the market grew by 4.5% year-on-year, and we continue to grow faster than the market. To further improve our product experience, we have introduced GenAI-assisted chatbot named Myra on our international flight booking funnel. Myra assists users with various flight-related queries and actions, such as applying conditional filters, obtaining visa or transit visa information, understanding baggage policies, learning about cancellation, date change penalties, et cetera. Additionally, it can suggest the cheapest travel days for a destination and perform searches based on simple chat commands. AI-based feature enhancement is a journey. We plan to make Myra more and more intelligent using consumer insights in the future. Additionally, we have further expanded our integrated eVisa feature now for five additional destinations, like Singapore, Indonesia, Vietnam, Azerbaijan, and Sri Lanka. To increase affordability and address cash flow issues, we have introduced a new EMI feature that converts the international flight price into a six-month EMI plan, thus addressing affordability concerns. On domestic flights, we now have premium airport services such as meet and assist, porter and buggy transfer, along with regular flight booking. We plan to expand this feature on our international funnel as well soon, thereby enriching the flight booking experience with additional services. Our accommodation business that includes hotels, homestays and packages continues to witness strong growth. We recorded over 27% year-on-year growth in the adjusted margin on a constant currency basis, contributing 44% to the overall revenue. As we improve our penetration, we continue to add more properties across the country and now offer properties in 2100 plus cities in India. Our international outbound business for hotels continues to scale as well, contributing 15% of total accommodation business revenue. On the customer experience side, we have introduced the street view feature to enhance the user experience by providing an accurate view of the external surroundings of the properties, ensuring safety and visual appeal. We are the first platform in India to introduce this capability for both domestic and international properties. We're also now giving personalized recommendations for a customer across room types, meals, and amenities. For example, highlighting options for properties in remote locations where meal plans are essential. This intervention not only enhances user convenience, but also helps improve conversion. We've also launched 360-degree imagery for virtual tours, initially covering 200 mid and premium properties with plans to expand over 1,000 hotels. This feature gives us gives users an immersive experience visualizing hotel rooms and amenities, leading to a higher conversion rate among users who interact with it and helping us promote higher ASP properties. Our homestay business continues to grow with increasing coverage of destinations. During the quarter, we sold over 19,300 plus unique properties across 850 plus unique destinations with strong growth across business and leisure destinations. We endeavor to grow this category by offering unique experiences to our customers. As part of our MOU signed with the Goa government, we launched Goa Beyond Beaches campaign, promoting homestays near temples and heritage homestays in city. The collaborative effort aims to further propel tourism in Goa and position it as vibrant year-round destination moving beyond its iconic sun, sand, and beaches. Make My Trip in collaboration with Niti Aayog launched Project METRI, a woman entrepreneurship program aimed to empower female entrepreneurs from Northeast India by leveraging the untapped potential of homestays as a pathway to entrepreneurship, economic empowerment, and independence. 30 hosts attended the inaugural workshop wherein comprehensive training focusing on key areas such as finance, legal, taxation, hospitality, and OTA management was provided to help them set up and run a successful homestay business. Our holiday packages business delivered robust performance as well, achieving highest ever gross booking numbers driven by strong growth in international outbound packages with new destinations like CIS countries, America, and Japan leading the growth. Our packages team added new products like next-gen adventures specifically targeting millennials and Gen Z. These are experiential group tours catering to the 18 to 35 years old age group. Our bus business continues to grow well, driven by strong demand and expansion of supply. The Beyonce in supply was due to the addition of new buses by many existing operators across the country as the delivery of new buses gathered pace. However, an increase in supply and a reduction in diesel prices has led to a fall in average seat price in most regions, particularly in South India, which helped in robust volume growth in the segment for us. Keeping women's preferences and safety in mind, we launched a women's special feature that shows info such as buses that are highly rated by women, number of women traveling along, women-specific red deals, reviews by women, etc., 45% of women bookings are through this funnel with higher conversion rates and NPS than the regular funnel. We also launched Tamil Booking Funnel on Android platform in April 24, in addition to the existing Hindi funnel, helping us cater to new regional users and drive deeper penetration. For our rail customers, we continue to add product features and strengthen our value proposition. As a result, we continue to gain market share in train bookings, leveraging all our brand's including MMT, Goi, Vibo, and Redbus. For intercity cabs, we integrated supply from Savari and were able to cater to peak season demand with high availability, fulfillment, and quality of service. We have also scaled up assisted sales where high-value bookings and complex itineraries are routed to agents who help with the conversion. Our corporate travel business via both our platforms, that is MyBiz and Quest2Travel, is witnessing strong growth. Our active corporate customer count on MyBiz is now over 59,700 plus. And for Quest to Travel, the active customer count has reached 458 large corporates compared to 272 large customers in the same quarter last year. We have increased the personalization quotient on the platform by giving customized property rankings based on user preferences and featuring international hotels. popular with Indian travelers, and tailored ranking for business trips. As regard to our UAE business, we had a successful marketing campaign, Let's Make My Trip in the UAE. In time to capture the travel demand for the Eid season, the focus was to grow our brand awareness with the non-Indian population. Our loyalty program, MMT Select in UAE, is continuing to get strong traction as well. We now have close to 473,000 enrollments into the program and 40,000, approximately 40,000 members are already in silver and gold tiers. With this, let me now hand over the call to Mohit for the financial highlights of the quarter. Thanks, Rajesh, and hello, everyone. We've started the year on a strong note, posting our highest ever quarterly gross bookings of $2.4 billion compared to $2 billion in the same quarter last year with a 21.6% year-on-year constant currency growth. Apart from strong growth in bookings, the improvement in mix of higher margin businesses compared to the same quarter last year has helped us post 31.5% year-on-year comprehensive growth in revenue and achieving our highest ever quarterly revenue up to $54.5 million as compared to $196.7 million in the same quarter last year. Moving on to our segment results, our A-ticketing gross bookings for the quarter came in at $1.4 billion, witnessing a year-on-year growth of 17% in constant currency. Adjusted margin stood at $89.1 million, registering a year-on-year growth of 21.2% in constant currency. Take rates for the A-ticketing business were on expected lines at about 6.4%. Our international A-ticketing business posted Strong year-on-year revenue growth of over 37% in constant currency and now accounts for over 37% of interested margins in the e-ticketing business. Gross bookings for the quarter in the hotels and packages segment came in at $611.3 million, registering a strong growth of 24.7% year-on-year on constant currency terms. Adjusted margin growth came in higher at 29.6% year-on-year, resulting in an adjusted margin of $107.3 million during the quarter. The take rates during the quarter in this segment came in on expected lines at 17.5%. We continue to drive supply expansion by going deeper and wider in the Indian market and growing directly contracted hotels in key international markets which are of interest to Indian overseas travelers. Our international HMP business grew 88% year on year in constant currency and now accounts for about 15% of the adjusted margins from this segment. In the bus ticketing business, gross bookings for the quarter came in at $316 million, growing at 15.9% year on year in constant currency. Adjusted margin came in at $32.4 million, registering a year-on-year growth of over 20.7% in constant currency. The take-hits for the business came in line at about 10.2% for the quarter. Besides driving strong bookings and revenue growth, we continue to remain focused on building strong operating cost efficiencies. As a result, our expenses, which are largely in the nature of fixed costs such as personal expenses and selling or general administrative expenses, have shown operating leverage on a year-on-year basis. Considering that the reported quarter was a seasonally high leisure travel quarter coinciding with some softness in the early part of the quarter due to general elections, we have slightly increased the spend on marketing by rolling out brand campaigns leveraging the cricketing events during the quarter. Accordingly, our marketing and sales promotion expenses on customer action costs came in at 4.8% of gross bookings, which is slightly higher than the 4.6% in same quarter last year. As a result of the above, we are pleased to report our highest ever quarterly adjusted operating profit of $39.1 million and our highest ever adjusted operating profit margin at 1.64% as a percentage of gross bookings. The comparable adjusted operating profit during the same quarter last year was $30.1 million in absolute terms and 1.52 percent in percentage stocks. Our cash generation continues to be robust. During the quarter, we added net cash from operations to the tune of $42.9 million. We also saw temporary working capital releases as expected in a seasonally strong leisure travel quarter. As a result of this, our cash and cash equivalents at the end of the quarter stand at about $676 million. Besides maintaining a healthy war chest, we will continue to leverage this strong cash position to invest in potential travel and travel-related organic as well as niche inorganic growth opportunities. Last quarter, we had called out our intent to pursue opportunistic share repurchases or buyback. While no shares were repurchased from the market during the reported quarter, we remain committed to the program if and when the opportunity arises. Before we open up the call for Q&A, I would like to mention that our investments over the years in key strategic areas, such as expansion of travel and travel related services offered on our platforms, the increasing breadth of services across large number of cities in the country, Sharper targeting of customer cohorts via non-B2C platforms such as MyBiz or Quest to Travel for corporate customers and MyPartner and MyAffiliate for wider penetration and the underneath investments in technology have been yielding good results and helping us grow faster than the industry. As we begin fiscal year 25, we look forward to continued investments in these areas and we'll keep sharing progress on any significant milestones achieved. For instance, our corporate business via our MyBiz and Q2D platforms crossed the $200 million gross booking milestone during the reported quarter. With that, I'd like to turn the call back to Vipul for Q&A.

Thanks, Mohit. Any participant who wishes to ask a question can press the raise hand button on their screen and we will take the questions one by one. The first question is from the line of Sachin Salgankar of Bank of America. Sachin, you may please ask your question now.