MakeMyTrip Limited (NASDAQ:MMYT) Q2 2024 Earnings Call Transcript
MakeMyTrip Limited (NASDAQ:MMYT) Q2 2024 Earnings Call Transcript October 31, 2023
Vipul Garg: Hello, everyone. I'm Vipul Garg, Vice President, Investor Relations at MakeMytrip Limited, and welcome to our fiscal '24 second quarter earnings webinar. Today's event will be hosted by company's leadership team, comprising Deep Kalra, our company's Founder and Chairman. Joining him is Rajesh Magow, 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 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 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 20-F 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.
Rajesh Magow: Thank you, Vipul. Welcome, everyone, to our second quarter call of fiscal 2024. We are pleased to report another quarter of strong operating performance, where we maintained strong momentum, both in terms of top line and bottom line growth year-on-year. Gross bookings for the quarter reached $1.8 billion, growing at 23.8% year-on-year in constant currency terms, while our adjusted operating profit, or adjusted EBIT, grew by 87% year-on-year to $28.2 million as compared to $15.5 million in the same quarter last year. We delivered this performance despite a short-term supply contraction, challenged during the quarter and the temporary hit on demand due to unprecedented monsoon rains in some parts of the country. As for the macro outlook, India is expected to be one of the fastest-growing large economies in the future, leading to a gradual increase in GDP per capita and a larger allocation towards discretionary spending, of which travel and experiences will garner a major share.
According to the latest report by McKinsey, India is poised to witness one of the most rapid increases in travel expenditures among the world's top 10 countries from a travel spending figure of $150 billion in 2019. Travel expenditures are anticipated to reach [$410 million], making India the fourth largest global spender on travel by 2030. On the other hand, according to WTTC, travel and tourism sector contributed 7.6% to the global GDP in 2022. While in India, it accounted for 4.5% of the GDP, reflecting a huge headroom for growth. The contribution of travel and tourism industry to India's economy is growing steadily, generating substantial revenue and employment opportunities across various sectors, including hospitality, transportation and local businesses.
We expect travel and tourism in India to grow faster than the overall GDP during the next decade, which should act as a tailwind for the overall industry. A large part of this growth will be led by the aviation and accommodation sector. This is corroborated by the fact that all major airlines have placed a record number of orders for new planes and all major hotel chains have announced the addition of new properties, which will help in supply expansion for many years to come. Homestay supply is also growing in the country with people investing in secondary homes to be used as homestays in key leisure destinations in the country. According to government of India forecast, the current 145 million air passengers in India are projected to rise to 425 million by 2025.
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