MakeMyTrip Limited — FY2022 Form 20-F Summary
Business context and reporting period. This is an annual report for the fiscal year ended March 31, 2022, prepared under IFRS. MakeMyTrip operates online travel platforms in India and internationally under MakeMyTrip, Goibibo and redBus, with air ticketing, hotels and packages, bus ticketing and other travel services. The filing also reports the three months ended March 31, 2022 as fiscal Q4.
Financial and operating performance
| Metric | FY2022 | FY2021 |
|---|---|---|
| Revenue | $303.9 million | $163.4 million |
| Operating loss (IFRS) | $30.4 million | $67.7 million |
| Net loss (IFRS) | $45.6 million | $56.0 million |
| Adjusted operating profit (non-IFRS) | $23.2 million | Adjusted operating loss of $18.0 million |
| Adjusted net profit (non-IFRS) | $21.7 million | Adjusted net loss of $9.2 million |
| Operating cash flow | $6.0 million | $64.5 million |
| Cash and cash equivalents plus term deposits | $477.5 million | $449.9 million |
Revenue increased 86.0%, reflecting recovery in travel demand, while the company remained loss-making under IFRS. Adjusted results exclude specified items and recurring share-based compensation; they are not substitutes for IFRS results. Gross bookings rose to $3.19 billion from $1.64 billion. Revenue presentation differs by business: packages are generally recorded gross, while agent commissions and fees are generally recorded net.
Segment trends: Air-ticketing revenue was $88.7 million, hotels and packages $157.3 million, bus ticketing $39.9 million, and other revenue $18.0 million. Corresponding adjusted-margin percentages were 8.0%, 17.9%, and 8.7% for air, hotels and packages, and bus, respectively. Flight segments increased to 24.7 million from 15.0 million; room nights to 15.6 million from 8.5 million; and bus tickets travelled to 39.5 million from 26.7 million.
Fiscal Q4: Revenue was $88.6 million; operating result was a profit of $3.4 million, while net loss was $4.1 million. The filing does not provide a clear Q4 adjusted-profit figure in the quarterly table.
Margins, costs and cash flow: FY2022 operating expenses rose with activity. Marketing and sales promotion expense increased to $51.0 million from $22.7 million; personnel expense to $116.9 million from $105.7 million; and other operating expense to $81.6 million from $51.1 million. Customer inducement costs recorded as a reduction of revenue were $111.2 million, versus $42.9 million. Operating cash flow fell to $6.0 million, with management citing working-capital movements and recovery-related changes.
Debt and liquidity: Cash and cash equivalents were $213.3 million and term deposits were $264.2 million at March 31, 2022. The company reported no amounts drawn under working-capital and overdraft facilities. The $230.0 million principal amount of 0.00% convertible notes due 2028 had a $201.2 million carrying value; holders may require repurchase in February 2024 and February 2026, and upon a fundamental change. Secured bank loans were $1.4 million and lease liabilities $14.0 million. The filing reports a $274.8 million net cash position using cash, term deposits and borrowings, excluding lease liabilities. Management said available liquidity and facilities should meet needs for at least 12 months after filing.
Material changes, outlook and risks
- Recovery and comparison: Revenue and booking volumes improved from FY2021, but remained below FY2020 levels. COVID-19 waves, restrictions and new variants continued to weigh on FY2022 results. Regular international flights in India resumed March 27, 2022; management expected this to support travel demand in FY2023, but gave no numerical revenue or earnings guidance.
- Investment and capital allocation: Capital expenditure was $12.9 million in FY2022; the company expected approximately $11–14 million in FY2023. It sold its entire Ixigo investment for $38.5 million, recording a $33.5 million fair-value gain in other comprehensive income. In April 2022, it acquired a majority stake in Book My Forex for $7.7 million.
- Unusual items: A February 2022 settlement with former Hotel Travel Group shareholders requires $35.5 million in payments through September 2023; the company reversed $3.7 million of prior provision and recorded a further $4.7 million litigation provision in FY2022 relating to a prior acquisition.
- Key risks and contingencies: Results remain exposed to travel disruption, competition and discounting, supplier commissions and availability, foreign-exchange movements, technology and cybersecurity incidents, and evolving Indian regulation. A 10% US-dollar appreciation against the rupee was estimated to increase FY2022 loss by $25.1 million; the company does not hedge this exposure. Major contested service-tax claims and other tax matters remain disclosed; management considers the likelihood of adverse outcomes remote. A Competition Commission investigation involving hotel listings was ongoing, and the redBus Motor Vehicles Act matter remained unresolved.
- Controls and audit: Management and the auditor concluded internal control over financial reporting was effective at March 31, 2022. The auditor issued an unqualified opinion on the financial statements and controls. Management described remediation of a material weakness identified in FY2020 involving forecasts used in goodwill impairment testing.
Most important facts for investors to verify
- Whether the recovery in travel volumes and gross bookings continues, particularly after the FY2022 volatility from COVID-19 restrictions.
- Whether operating cash flow improves as revenue grows, given the decline from $64.5 million to $6.0 million.
- The sustainability of adjusted profitability and the effects of customer inducements, share-based compensation and other excluded costs.
- Liquidity planning for the 2024 and 2026 note repurchase dates, alongside the $35.5 million settlement payments.
- Developments in material tax, competition and regulatory proceedings, and the company’s ability to maintain effective financial controls.