Financial Highlights
  • Gross bookings (1) for Air ticketing and Hotels and packages combined increased by $51.2 million to $156.0 million, representing growth of 48.8% year over year.
  • Revenue increased by 40.5% year over year to $23.8 million. Revenue less service cost (2) increased by $3.8 million to $12.9 million, representing a growth of 41.5% year over year.
  • Net revenue margin (3) for Air ticketing was 7.4% and Hotels & packages net revenue margin was 11.9%.
  • Result from operating activities improved to $0.33 million, an increase of $0.15 million from the prior year's fiscal second quarter. Adjusted operating profit (4) improved to $0.48 million versus $0.18 million in the prior year's fiscal second quarter.
  • Loss for the period was $1.8 million, versus profit of $0.02 million in the prior year's fiscal second quarter. Adjusted net income (5) was $0.58 million, representing an increase of $0.30 million from the prior year's fiscal second quarter.

GURGAON, India and NEW YORK, Nov. 15, 2010 (GLOBE NEWSWIRE) -- MakeMyTrip Limited (Nasdaq:MMYT), India's leading online travel company, today announced its unaudited financial and operating results for its second fiscal quarter ended September 30, 2010. This is the company's first post-IPO publicly announced quarter. MakeMyTrip Limited successfully completed its initial public offering on August 17, 2010. The company is listed on the NASDAQ Global Market under the symbol "MMYT". "Our strong operating results in the latest quarter were achieved through the recognition of MakeMyTrip as a superior brand that offers innovative travel products and excellent customer booking experience in India's online travel market," said Deep Kalra, Chairman and CEO of MakeMyTrip. "Additionally, our successful initial public offering now provides MakeMyTrip with the ability to keep growing by investing in technology and strategic acquisitions that will enhance customers' experience and create long term shareholder value."
(in thousands except EPS) 3 Months Ended September 30, 2009 3 Months Ended September 30, 2010 YoY Change
Financial Summary as per IFRS    
Revenue $16,964.4 $23,828.4 40.5%
Revenue Less Service Cost (2) $9,095.4 $12,867.9 41.5%
Air Ticketing $7,326.8 $10,280.7 40.3%
Hotels & Packages $1,526.8 $2,060.2 34.9%
Other $241.8 $527.1 118.0%
Results from Operating Activities  $178.4 $325.2 82.4%
Adjusted Operating Profit (4) $178.4 $479.4 168.8%
Income (Loss) for the period  $19.1 ($1,795.7)  
Adjusted Net Income (Loss) (5) $282.1 $579.0 105.2%
Earning (Loss) per share $0.001 ($0.07)  
Adjusted Diluted Earning (Loss) per share (5) $0.01 $0.02  
       
Operating Metrics      
Gross Bookings $104,807.1 $155,988.0 48.8%
Air Ticketing $94,208.8 $138,613.3 47.1%
Hotels & Packages $10,598.3 $17,374.7 63.9%
Transactions      
Air Ticketing 460.8 620.9 34.7%
Hotels & Packages 22.2 31.4 41.3%
       
(1) Represents the total amount paid by our customers for the travel services and products booked through us, including taxes, fees and other charges, and are net of cancellations and refunds
(2) Represents IFRS revenue after deducting service costs. 
(3) Revenue less service cost as a percentage of gross bookings.
(4) Results from operating activities excluding employee share-based compensation costs.
(5) Profit (loss) for the period excluding employee share-based compensation costs, one time IPO costs relating to listing of existing shares, interest expense on the liability portion of preference shares and changes in the fair market value of embedded derivatives in the preference shares. 

Please see "About Non-IFRS Financial Measures" included within this release to understand the importance of the financial measures set forth in notes (2) to (5) above. Reconciliations of non-IFRS financial measures to IFRS operating results are included at the end of this release. 

Fiscal 2011 Second Quarter Financial Results

Revenue. We had revenue of $23.8 million in the quarter ended September 30, 2010, an increase of 40.5% over revenue of $17.0 million in the quarter ended September 30, 2009.

Air Ticketing. Revenue from our air ticketing business increased by 40.1% to $10.3 million in the quarter ended September 30, 2010 from $7.3 million in the quarter ended September 30, 2009. This was due to increase in gross bookings by 47.1% partially offset by reduction in net revenue margin from 7.8% in the quarter ended September 30, 2009 to 7.4% in the quarter ended September 30, 2010. Air ticketing net revenue margin in the quarter improved by 60 basis points from 6.8% in the previous quarter as our air bookings increased quarter to quarter, resulting from volume-related incentives from airlines, and increases in service fees and global distribution fees collected.

Hotels and Packages. Revenue from our hotels and packages business increased by 38.8% to $13.0 million in the quarter ended September 30, 2010 from $9.4 million in the quarter ended September 30, 2009. Our Revenue less service cost (2) increased by 34.9 % to $2.1 million in the quarter ended September 30, 2010 from $1.5 million in the quarter ended September 30, 2009. This was due to increase in gross bookings by 63.9% partially offset by reduction in net revenue margin from 14.4% in the quarter ended September 30, 2009 to 11.9% in the quarter ended September 30, 2010 as net revenue margins normalized from levels experienced in fiscal 2010 when travel suppliers provided us favorable rates during the slowdown in India's economy. Hotels & packages net revenue margins remained unchanged at 11.9% quarter to quarter.

Other Revenue. Our other revenue increased by 118.0% to $0.5 million in the quarter ended September 30, 2010 from $0.2 million in the quarter ended September 30, 2009, primarily due to increase in sale of rail tickets.

Total Revenue less Service Cost. Our total revenue less service cost increased by 41.5% to $12.9 million in the quarter ended September 30, 2010 from $9.1 million in the quarter ended September 30, 2009 as a result of a 40.3% increase in our air ticketing revenue less service cost, as well as a 34.9% increase in our hotels and packages revenue less service cost.

Personnel Expenses. Personnel expenses increased to $3.4 million in the quarter ended September 30, 2010 from $2.4 million in the quarter ended September 30, 2009, mainly as a result of annual wage increases and increases in average employee headcount year over year in the quarter ended September 30, 2010 as a result of overall increase in business and due to employee share-based compensation costs of $0.2 million in quarter ended September 30, 2010 as against $0 in quarter ended September 30, 2009.

Other Operating Expenses. Other operating expenses increased by 42.8% to $8.7 million in the quarter ended September 30, 2010 from $6.1 million in the quarter ended September 30, 2009, primarily as a result of increase in payment gateway charges, advertising and business promotion expenses and outsourcing fees in line with the growth in our business.

Results from Operating Activities. As a result of the foregoing factors, our results from operating activities improved to an income of $0.3 million in the quarter ended September 30, 2010 from an income of $0.2 million in the quarter ended September 30, 2009. Excluding the effects of our employee share-based compensation costs for both quarters ended September 30, 2010 and 2009, we would have recorded an operating profit of $0.5 million in the quarter ended September 30, 2010 and $0.2 million in the quarter ended September 30, 2009.

Finance Costs. Our finance costs increased to $2.5 million in the quarter ended September 30, 2010 from $0.6 million in the quarter ended September 30, 2009, primarily due to one-time initial public offering costs related to our listing of existing shares of $2.1 million in the current quarter, partially offset by decrease in foreign exchange loss due to strengthening of the Indian rupee versus US dollar.

Profit (Loss) for the period. As a result of the foregoing factors, including the effects of our employee share-based compensation costs and a one-time charge related to the listing of our existing shares in our initial public offering of $2.1 million in the current quarter, our loss for the quarter ended September 30, 2010 was $1.8 million as compared to a profit of $0.02 million in the quarter ended September 30, 2009.  Excluding the effects of employee share-based compensation costs for both fiscal years 2010 and 2009, the one-time charge related to the listing of our existing shares in our initial public offering of $2.1 million in the current quarter, interest accrued on the liability portion of preference shares and changes in fair market value of embedded derivatives in the preference shares, we would have recorded a net profit of $0.6 million in the quarter ended September 30, 2010 and a net profit of $0.3 million in quarter ended September 30, 2009.

Earnings (loss) per share. Diluted loss per share was $0.07 for the quarter ended September 30, 2010 as compared to earnings per share of $0.001 in the corresponding quarter in the prior fiscal year. The loss in the current quarter was mainly as a result of interest accrued on the liability portion of preference shares, one time charges related to our initial public offering listing expenses of $2.1 million, employee share-based compensation costs as mentioned in the preceding paragraph and increase of 12.3 million shares primarily from conversion of all outstanding preferred shares prior to our initial public offering and share option exercise by certain selling shareholders at the time of the offering. Adjusted for these items, diluted earnings per share was $0.02 in the quarter ended September 30, 2010, compared to $0.01 in the quarter ended September 30, 2009.

Contingencies

During the year ended March 31, 2009, a general industry wide audit was initiated by the Mumbai Zonal Unit of Directorate General of Excise Intelligence & Customs (regulatory authority) on various travel agencies across India with regard to compliance with service tax rules and regulations by travel companies in India. Pursuant to the audit conducted by the service tax authorities, the company received a notice during the quarter ended September 30, 2010 relating to a demand of service tax on certain matters, some of which are industry-wide issues and involve complex interpretation of law. Based on legal advice received, the company believes that it has a strong case in its favor and is in the process of preparing an appropriate response to the notice issued by the service tax authorities. However, at present no reliable estimate can be made of the amount of the obligation, if any.

Fiscal Year 2011 Outlook

The company's long term outlook is optimistic. MakeMyTrip expects fiscal year 2011's revenue less service cost to be between $58 million and $61 million.

Deep Kalra, CEO and Founder, said "We believe MakeMyTrip is well positioned to capture the long term growth in travel services that comes with the growing Indian economy and its middle class. The expected roll out of broadband Internet services throughout the country will only continue to drive the popularity of e-commerce which will benefit online travel companies like MakeMyTrip for many years to come."

Conference Call MakeMyTrip will host a conference call to discuss the company's results for the quarter ended September 30, 2010 beginning at 10:00 a.m. EST on November 15, 2010.  To participate, please dial 1-866-242-1388 from within the U.S. or +65-6722-6342 from any other country. Thereafter, callers will be prompted to enter the participant passcode 20831925. A live webcast of the conference call will also be available through the Investor Relations section of the company's website at http://investors.makemytrip.com .

A telephonic replay of the conference call will be available for one week by dialing 1-866-214-5335 in the U.S. or by dialing +61 2 8235 5000 from any other country and using passcode 20831925. A one month replay of the live webcast will also be available at http://investors.makemytrip.com , shortly following the conclusion of the call.

About Non-IFRS Financial Measures

As certain parts of our revenues are recognized on a "net" basis and other parts of our revenue are recognized on a "gross" basis, we evaluate our financial performance based on revenue less service costs, which is a non-IFRS measure, as we believe that revenue less service cost reflects more accurately the value addition of the travel services that we provide to our customers. The presentation of this non-IFRS information is not meant to be considered in isolation or as a substitute for our consolidated financial results prepared in accordance with IFRS as issued by the IASB. Our revenue less service costs may not be comparable to similarly titled measures reported by other companies due to potential differences in the method of calculation.  The company believes that Adjusted operating profit and Adjusted net income are useful in measuring the results of the company. The IFRS measures most directly comparable to Adjusted operating profit and Adjusted net income are Results from operating activities and Income (Loss) for the period, respectively. The company believes that adjustments to these IFRS measures, including employee stock compensation costs, interest accretion on preference stock, one-time expenses such as IPO listing fees and gain or loss in fair market value of the embedded options within preference stock, provide investors and analysts a more accurate representation of the company's operating results.

Safe Harbor Statement

This release contains certain statements concerning the Company's future growth prospects and forward-looking statements, as defined in the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on the company's current expectations, assumptions, estimates and projections about the company and its industry. The forward-looking statements are subject to various risks and uncertainties. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "anticipate," "believe," "estimate," "expect," "intend," "will," "project," "seek," "should" and similar expressions. Such statements include, among other things, quotations from management as well as MakeMyTrip's (MMYT) strategic and operational plans.  Forward-looking statements involve inherent risks and uncertainties. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Potential risks and uncertainties include, but are not limited to, the slow-down of economic growth in India and the global economic downturn, general declines or disruptions in the travel industry, volatility in the trading price of MMYT's shares, MMYT's reliance on its relationships with travel suppliers and strategic alliances, failure to further increase MMYT's brand recognition to obtain new business partners and consumers, failure to compete against new and existing competitors, failure to successfully manage current growth and potential future growth, risks associated with any strategic investments or acquisitions, seasonality in the travel industry in India and overseas, failure to successfully develop MMYT's corporate travel business, damage to or failure of MMYT's infrastructure and technology, loss of services of MMYT's key executives, and inflation in India and in other countries. These and other factors are more fully discussed in the "Risk Factors" section of MMYT's prospectus dated August 11, 2010, filed with the U.S. Securities and Exchange Commission. All information provided in this release is provided as of the date of issuance of this release, and MMYT does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

About MakeMyTrip Limited and MakeMyTrip.com MakeMyTrip Limited is the parent company of MakeMyTrip (India) Private Limited, India's largest online travel company and MakeMyTrip.com Inc. The company's services and products include air tickets, customized holiday packages, hotel bookings, railway tickets, bus tickets, car hire and facilitating access to travel insurance. Through its primary website, www.makemytrip.com, and other technology-enhanced platforms, the company provides access to all major domestic full-service and low-cost airlines operating in India, all major airlines operating to and from India, over 4,000 hotels in India and a wide selection of hotels outside India, Indian Railways and several major Indian bus operators.

The MakeMyTrip Limited logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=8203
MAKEMYTRIP LIMITED UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
     
     
  As at March 31, 2010 As at September 30, 2010
  (in USD)
Assets    
Property, plant and equipment  3,748,180  3,870,429
Intangible assets  2,024,059  1,690,566
Trade and other receivables  413,488  464,064
Term deposits  1,295,489  1,517,576
Other non-current assets  124,126  115,505
Total non-current assets   7,605,342   7,658,140
     
Current tax assets  942,543  1,942,796
Trade and other receivables, net  12,036,039  13,679,800
Term deposits  13,175,915  14,800,805
Other current assets  7,532,087  10,814,327
Cash and cash equivalents  9,341,526  65,202,986
Total current assets  43,028,110   106,440,714
Total assets   50,633,452   114,098,854
     
Equity (Deficit)    
Share capital  8,767  17,417
Share premium  11,356,522  110,381,639
Accumulated deficit  (42,510,416)  (43,029,888)
Share based payment reserve  7,061,910  4,712,101
Foreign currency translation reserve  (872,218)  (762,661)
Total equity (deficit) attributable to equity holders of the Company   (24,955,435)   71,318,608
Non-controlling interest  4,390  4,774
Total equity (deficit)  (24,951,045)   71,323,382
     
Liabilities    
Loans and borrowings  132,103  175,173
Employee benefits  437,444  515,768
Deferred income  1,852,679  1,418,964
Derivatives  48,382  -- 
Other non-current liabilities  447,295  490,239
Total non-current liabilities  2,917,903   2,600,144
     
Bank overdraft  3,996,066  8,222,523
Loans and borrowings  40,834,795  64,106
Trade and other payables  26,467,047  29,869,233
Deferred income  814,516  905,687
Other current liabilities  554,170  1,113,779
Total current liabilities   72,666,594   40,175,328
Total liabilities   75,584,497  42,775,472
Total equity and liabilities   50,633,452  114,098,854
 
  MAKEMYTRIP LIMITED UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)        
     
  For the three months ended September 30 For the six months ended September 30
  2009 2010 2009 2010
  (in USD)
Revenue        
Air ticketing  7,338,839  10,280,659  15,155,500  20,270,185
Hotels and packages  9,383,824  13,020,721  23,941,950  36,243,065
Other revenue  241,783  527,069  494,008  1,037,982
Total revenue   16,964,446  23,828,449  39,591,458  57,551,232
         
Service cost        
Procurement cost of hotel and packages services  7,856,997  10,960,564  20,217,398  30,824,182
Purchase of air tickets coupon   12,023  --   771,503  -- 
Personnel expenses  2,419,140  3,357,443  11,194,050  6,813,045
Other operating expenses  6,115,025  8,731,378  12,111,601  17,426,625
Depreciation and amortization  382,896  453,815  747,417  902,815
Result from operating activities  178,365  325,249  (5,450,511)  1,584,565
         
Finance income  396,035  357,497  979,429  726,718
Finance costs  555,300  2,478,408  1,092,156  2,795,541
Net finance costs  (159,265)  (2,120,911)  (112,727)  (2,068,823)
         
Profit (Loss) before tax  19,100  (1,795,662)  (5,563,238)  (484,258)
Income tax expense  --   --   (3,385)  (1,209)
Profit (Loss) for the period   19,100  (1,795,662)  (5,566,623)  (485,467)
         
Other comprehensive income (loss)      
Foreign currency translation differences on foreign operations  76,306  565,566  754,364  109,576
Defined benefit plan actuarial losses  --   (33,640)  --   (33,640)
Other comprehensive income (loss) for the period, net of tax  76,306  531,926  754,364  75,936
Total comprehensive income (loss) for the period  95,406  (1,263,736)  (4,812,259)  (409,531)
         
Profit (Loss) attributable to:        
Owners of the Company  18,923  (1,795,736)  (5,565,910)  (485,837)
Non-controlling interest  177  74  (713)  370
Profit (Loss) for the period   19,100  (1,795,662)  (5,566,623)  (485,467)
         
Total comprehensive income (loss) attributable to:    
Owners of the Company  95,235  (1,263,902)  (4,811,676)  (409,915)
Non-controlling interest  171  166  (583)  384
Total comprehensive income (loss) for the period   95,406  (1,263,736)  (4,812,259)  (409,531)
         
Earnings (Loss) per share        
Basic  0.001  (0.07)  (0.32)  (0.02)
Diluted  0.001  (0.07)  (0.32)  (0.02)
 
MAKEMYTRIP LIMITED UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
                 
  Attributable to equity holders of the Company    
 (in USD) Share capital Share premium Accumulated deficit Share based payment reserve Foreign currency translation reserve Total Non-controlling interest Total equity (deficit)
               
Balance as at April 1, 2010  8,767  11,356,522  (42,510,416)  7,061,910  (872,218)  (24,955,435)  4,390  (24,951,045)
Total comprehensive income (loss) for the period                
Profit/ (Loss) for the period  --   --   (485,837)  --   --   (485,837)  370  (485,467)
                 
Other comprehensive income (loss)                
Foreign currency translation differences  --   --   --   --   109,557  109,557  19  109,576
Defined benefit plan actuarial gains (losses), net of tax  --   --   (33,635)  --   --   (33,635)  (5)  (33,640)
Total other comprehensive income (loss)  --   --   (33,635)  --   109,557  75,922  14  75,936
Total comprehensive income (loss) for the period  --   --   (519,472)  --   109,557  (409,915)  384  (409,531)
                 
Transactions with owners, recorded directly in equity                
Contributions by owners                
Share-based payment  --   --   --   307,060  --   307,060  --   307,060
Issue of ordinary shares on exercise of share options  411  3,805,929  --   (2,656,869)  --   1,149,471  --   1,149,471
Convertible and redeemable preference shares convereted to ordinary shares at initial public offering  6,162  41,179,783  --   --   --   41,185,945  --   41,185,945
Issue of ordinary shares through initial public offering, net of issuance costs  2,077  54,039,405  --   --   --   54,041,482  --   54,041,482
Total contributions by owners  8,650  99,025,117  --   (2,349,809)  --   96,683,958  --   96,683,958
                 
Balance as at September 30, 2010  17,417  110,381,639  (43,029,888)  4,712,101  (762,661)  71,318,608  4,774  71,323,382
 
MAKEMYTRIP LIMITED UNAUDITED CONSOLIDATED STATEMENT OF CASH FLOWS
     
  For the six months ended September 30
  2009 2010
  (in USD)
Profit/(loss) for the period   (5,566,623)  (485,467)
Adjustments for Non Cash Items  7,484,316  3,285,872
Change in working capital   2,563,166  (4,775,488)
Net cash from (used in) operating activities  4,480,859  (1,975,083)
Net cash from (used in) investing activities  5,269,350  (525,457)
Net cash from (used in) financing activities  (66,029)  54,207,299
Increase (Decrease) in cash and cash equivalents  9,684,180  51,706,759
Cash and cash equivalents at beginning of the period  (2,442,385)  5,345,460
Effect of exchange rate fluctuations on cash held  (435,323)  (71,756)
Cash and cash equivalents at end of the period  6,806,472  56,980,463
 
  MAKEMYTRIP LIMITED RECONCILIATION OF IFRS TO NON-IFRS FINANCIAL MEASURES
                 
  Three months ended September 30
 (in USD) Air ticketing Hotels and packages Others Total
  2009 2010 2009 2010 2009 2010 2009 2010
                 
Revenue 7,338,839 10,280,659 9,383,824 13,020,721 241,783 527,069 16,964,446 23,828,449
                 
Less:                
Service cost 12,023  --  7,856,997 10,960,564  --   --  7,869,020 10,960,564
Revenue less service cost 7,326,816 10,280,659 1,526,827 2,060,157 241,783 527,069 9,095,426 12,867,885
                 
                 
  Six months ended September 30
  Air ticketing Hotels and packages Others Total
  2009 2010 2009 2010 2009 2010 2009 2010
                 
Revenue 15,155,500 20,270,185 23,941,950 36,243,065 494,008 1,037,982 39,591,458  57,551,232
                 
Less:                
Service cost 771,503  --  20,217,398 30,824,182  --   --  20,988,901 30,824,182
Revenue less service cost 14,383,997 20,270,185 3,724,552 5,418,883 494,008 1,037,982 18,602,557 26,727,050
     
     
Reconciliation of Adjusted Operating Profit (Loss) For the three months ended September 30 For the six months ended September 30
(Unaudited) 2009 2010 2009 2010
  (in USD)
Result from operating activities as per IFRS  178,365  325,249  (5,450,511)  1,584,565
Add: Employee share-based compensation costs  --   154,109  6,606,273  307,060
Adjusted Operating Profit (Loss)  178,365  479,358  1,155,762  1,891,625
         
         
         
Reconciliation of Adjusted Net Income (Loss) For the three months ended September 30 For the six months ended September 30
(Unaudited) 2009 2010 2009 2010
  (in USD)
Income (Loss) for the period as per IFRS  19,100  (1,795,662)  (5,566,623)  (485,467)
Add: Employee share-based compensation costs  --   154,109  6,606,273  307,060
Add: IPO cost related to listing of existing shares  --   2,086,583  --   2,086,583
Less: Gain on change in fair market value of derivatives  (10,574)  (11,681)  (76,696)  (48,382)
Add: Interest accretion on preference stock  273,606  145,657  542,887  426,291
Adjusted Net Income (Loss)  282,132  579,006  1,505,841  2,286,085
         
Adjusted Earning (Loss) per share        
Basic 0.02 0.02 0.09 0.11
Diluted 0.01 0.02 0.08 0.10
         
MAKEMYTRIP LIMITED OPERATING DATA        
     
  For the three months ended September 30 For the six months ended September 30
  2009 2010 2009 2010
  (in thousands, except percentages)
Number of transactions        
Air ticketing  460.8  620.9 811.2  1,211.4
Hotels and packages  22.2  31.4 48.3  74.0
         
Revenue less service cost:        
Air ticketing  7,326.8  10,280.7  14,384.0  20,270.2
Hotels and packages  1,526.8  2,060.2  3,724.6  5,418.9
Other revenue  241.8  527.1  494.0  1,038.0
   9,095.4  12,867.9  18,602.6  26,727.1
Gross Bookings        
Air ticketing  94,208.8  138,613.3  183,748.2  285,093.2
Hotels and packages  10,598.3  17,374.7  26,711.2  45,538.8
   104,807.1  155,988.0  210,459.4  330,632.0
Net revenue margins        
Air ticketing 7.8% 7.4% 7.8% 7.1%
Hotels and packages 14.4% 11.9% 13.9% 11.9%
Combines net revenue margin for air ticketing and hotels and packages 8.4% 7.9% 8.6% 7.8%
CONTACT:  MakeMyTrip.com Inc.          Investor Relations          Jonathan Huang          +1 (646) 405-1311          jonathan.huang@makemytrip.com

company logo