MakeMyTrip Limited — Form 20-F Summary
Business context and reporting period
This is an audited annual report for the fiscal year ended March 31, 2023, prepared under IFRS. Although the request identifies “2022 Q4,” the filing provides full-year FY2023 results and comparative annual figures, not standalone quarterly results. MakeMyTrip operates online travel platforms and related services, principally in India, through MakeMyTrip, Goibibo and redBus.
Financial and operating performance
| Metric | FY2022 | FY2023 |
|---|---|---|
| Revenue | $303.9 million | $593.0 million, up 95.1% (110.3% constant currency) |
| Operating result | Loss of $30.4 million | Profit of $23.6 million; 4.0% of revenue |
| Net result | Loss of $45.6 million | Loss of $11.2 million; diluted loss per share $0.10 |
| Adjusted operating profit (non-IFRS) | $23.2 million | $70.3 million |
| Adjusted net profit (non-IFRS) | $21.7 million | $52.9 million |
| Operating cash flow | $6.0 million | $32.1 million |
| Cash and cash equivalents plus term deposits | $477.5 million | $486.7 million |
| Gross bookings | $3.19 billion | $6.57 billion |
FY2023 revenue growth reflected the strong recovery in travel demand. Air ticketing revenue was $147.8 million, hotels and packages $337.7 million, bus ticketing $74.9 million and other revenue $32.7 million. Segment Adjusted Margin percentages were 6.8% for air ticketing, 16.7% for hotels and packages, and 8.9% for bus ticketing. These are non-IFRS measures; the company notes they may not be comparable across issuers.
Bookings increased across major lines: air-ticket flight segments rose to 43.9 million from 24.7 million; hotels-and-packages room nights to 26.1 million from 15.6 million; and bus tickets travelled to 73.0 million from 39.5 million. The filing says air and hotels-and-packages Adjusted Margin percentages declined year over year, citing higher airfares without corresponding revenue per booking and a greater mix of lower-margin packages and international hotels.
Material changes, liquidity and debt
- The company moved from an operating loss to operating profit, while remaining loss-making under IFRS at the net-income level. Finance costs rose to $46.7 million, including $25.6 million of net foreign-exchange losses; the weaker rupee also reduced reported results.
- Cash from operations improved to $32.1 million. Investing activities generated $46.8 million net, largely reflecting term-deposit maturities and placements; financing activities used $6.2 million. Capital expenditure was $16.9 million.
- At March 31, 2023, total equity was $876.1 million and total assets $1.36 billion. Current liabilities were $453.7 million versus current assets of $671.9 million.
- The 0.00% convertible notes have $230 million principal outstanding, a $216.1 million carrying amount, and a holder put date of February 15, 2024. The notes are also puttable in 2026 and mature in 2028. The company reported a net cash position of $267.9 million excluding lease liabilities. It said available cash, deposits, operating cash flow and facilities should cover foreseeable needs, including at least 12 months after filing.
- Working-capital facilities were undrawn at year-end. A $70 million credit and guarantee facility from an affiliate of the largest shareholder was also undrawn. Management authorized a potential 2028 Notes repurchase program after year-end, subject to a combined $136 million limit for share and note repurchases; execution is not assured.
Outlook, risks, contingencies and unusual items
The filing provides no quantified revenue, earnings or margin guidance. Management describes a strategy of growing hotels and packages, expanding products and geographies, investing in technology, and pursuing selective acquisitions. It expects to continue marketing and customer-acquisition spending. The company budgeted FY2024 capital expenditure of approximately $13–17 million, in addition to $0.3 million of committed spending.
- Travel and supplier risks: demand remains sensitive to economic conditions, renewed health disruptions, geopolitical events, weather and travel safety. Go First, a top-five domestic airline supplier, suspended flights in May 2023 after entering insolvency proceedings. At year-end, MakeMyTrip had $20.5 million in advances to Go First; management did not consider impairment significant in light of possible resumption, but the outcome was uncertain.
- Competition ruling: India’s Competition Commission imposed an aggregate Rs. 2,234.8 million (about $27.2 million) penalty and behavioral directions relating to hotel-booking practices. The companies appealed; enforcement was stayed after a deposit of about $2.7 million, and the behavioral directions were being followed pending appeal.
- Other legal matters: the company agreed to a $35.5 million settlement with former Hotel Travel Group shareholders and had paid $33.34 million by the report date; $2.16 million remained payable by September 1, 2023. Numerous Indian tax and service-tax proceedings remain in progress; the filing describes many as unlikely to be upheld, but outcomes are not assured.
- Foreign exchange: no hedging arrangements were in place. Management estimated that a 10% U.S. dollar appreciation against the rupee would increase FY2023 loss by $20.9 million, all else equal.
- Ownership and governance: Trip.com held all Class B shares and 47.53% of total voting power, with significant board and governance rights. The filing also identifies potential dilution from convertible notes, equity awards and Trip.com pre-emptive rights.
- Accounting and controls: goodwill was $561.5 million and its impairment assessment was identified as a critical audit matter requiring significant estimates. The auditor issued unqualified opinions on the financial statements and internal controls. Management’s FY2023 controls assessment excluded Book My Forex and Simplotel while they are integrated. A prior material weakness related to goodwill forecasting was described as remediated.
Most important facts for investors to verify
- Confirm the relevant comparison is FY2023, not calendar-year 2022 or a standalone fourth quarter; quarterly figures are not clear in this filing text.
- Review IFRS losses alongside adjusted-profit reconciliations, including recurring share-based compensation of $35.6 million and interest expense of $15.1 million used in adjusted measures.
- Track Go First’s insolvency, recovery of advances and the effect of reduced airline supply on bookings.
- Monitor the 2024 convertible-note put, available liquidity, and any actual note or share repurchases.
- Follow the competition appeal, tax and service-tax proceedings, and remaining Hotel Travel Group settlement payment.
- Assess currency exposure, customer incentives and marketing costs, and whether improved demand sustains margins and cash generation.