MakeMyTrip Ltd. Q4 FY2025 earnings call

• Record Performance: Fiscal 2025 had gross booking value of $9.8 billion (+25.9% YOY CC) and adjusted operating profit of $167.3 million (+34.7% YOY). Q4 gross booking value grew 30.4% YOY CC, and adjusted operating profit grew 37.9% YOY. - User Growth: Added over 9 million customers in fiscal 2025, lifetime transacted user base at 82 million, repeat rate over 70%. - GenAI Initiatives: Myra.ai evolved as a unified trip planning chatbot with GenAI features across flights, hotels, etc. - Segment Highlights: Air-ticketing maintained over 30% domestic market share; hotels and packages saw strong growth with new signings in hospitality; bus business grew in Q4 with connecting bus services launched; corporate travel had strong growth in MyBiz and Quest2Travel.

Air-ticketing: Fiscal 2025 saw strong performance with domestic market share over 30%. In Q4, international air ticketing revenue mix reached 39% vs 36.7% same quarter prior. Adjusted margin for air-ticketing was $94.2 million with 6.2% take rates. Hotels and Packages: Gross booking value grew 27.7% YOY in constant currency terms for Q4. Adjusted margin for the segment was $109.6 million with 18% take rates, and adjusted margin growth was 28.4% YOY in constant currency. Post-ticketing: Adjusted margin stood at $36.5 million, registering over 44.3% YOY growth in constant currency, aided by one-time demand uplift from Mahakumbh.

• Management targets growth in the 20s, aiming for faster than industry growth. - Capital allocation focuses on investing in growth initiatives, exploring niche inorganic opportunities, and returning value to shareholders via buybacks. For example, continuing to invest in AI, UAE business, redBus expansion, and deploying funds in share repurchases.

• Temporary dip in bookings due to geopolitical issues in North India impacting leisure and corporate travel. - Macro-economic and geopolitical uncertainties that could impact travel sentiment in the short term.

Q: On selling and marketing expense, how is management thinking?

A: Management thinks to keep marketing and promotional expenses around the 5% level, focusing on growth and not curtailing spends as the pie is large and they aim for faster growth than the industry.

Q: Industry and MakeMyTrip growth rate?

A: Management believes in targeting growth in the 20s, with a similar growth trajectory expected in the next few years as they don't see reasons for growth to slow down significantly.

Q: AI competition?

A: Rajesh Magow is confident in leveraging their own data and models, not overly worried about immediate threats as they focus on building a differentiated and intuitive user interface using GenAI.

Q: Competition in India market?

A: Rajesh Magow states the market is large, and they focus on their own strategy, not losing sleep over competition as the pie is big and they aim to stay ahead through execution of their own strategies.

Q: Margin guidance?

A: Mohit Kabra mentions they are still at the lower end of the 1.8%-2% margin guidance range and will see how it progresses, with the focus on moving into the range and then seeing further progression.

Q: Buyback strategy?

A: Mohit Kabra says the buyback strategy is opportunistic, timing buybacks based on market conditions to deploy funds when the market is under pressure.