MakeMyTrip Limited — Form 20-F Summary
Reporting period: Fiscal year ended March 31, 2024 (FY2024), filed July 2, 2024. This is an annual report, not a standalone 2023 fourth-quarter filing; the provided text does not give a clear Q4-only financial summary. Financial statements are prepared under IFRS as issued by the IASB and reported in U.S. dollars.
Business context
MakeMyTrip operates online travel platforms and related services, principally in India, through MakeMyTrip, Goibibo and redBus. Its offerings include air, hotel and package, bus and rail bookings, car hire and ancillary travel services. India generated 93.1% of FY2024 revenue. The company acquired a majority interest in Savaari in December 2023 and proposed merging redBus India into MMT India, subject to regulatory approvals.
Key financial and operating metrics
| Metric | FY2024 | Prior comparable period |
|---|---|---|
| Revenue | $782.5 million | $593.0 million, FY2023 |
| Operating result | $65.2 million profit; 8.2% of revenue as reported | $23.6 million profit |
| Profit (loss) before tax | $92.9 million | $(12.1) million |
| Profit (loss) for the year | $216.7 million; diluted EPS $1.74 | $(11.2) million; diluted loss per share $0.10 |
| Adjusted operating profit (non-IFRS) | $124.2 million | $70.3 million |
| Adjusted net profit (non-IFRS) | $137.2 million | $52.9 million |
| Gross bookings | $7.95 billion | $6.57 billion |
| Net cash from operating activities | $125.7 million | $32.2 million |
| Cash, cash equivalents and term deposits | $607.8 million, including $6.8 million restricted | $486.7 million, based on reported cash and term deposits |
| Net cash position | $402.8 million, excluding lease liabilities | $267.9 million |
Revenue grew 32.0% reported and 35.7% in constant currency. By segment, FY2024 revenue was $201.2 million in air ticketing, $435.5 million in hotels and packages, $92.7 million in bus ticketing and $53.0 million in other revenue. Adjusted Margin percentages were 6.4%, 17.6% and 9.9% for air, hotels and packages, and bus, respectively; these are non-IFRS measures, not operating margins. Booked volume increased to 51.1 million flight segments, 31.1 million hotel room nights and 86.8 million bus tickets travelled.
FY2024 expenses included $215.1 million service cost, $147.6 million personnel expense, $123.3 million marketing and sales promotion expense, and $204.8 million other operating expense. Customer inducement costs of $250.0 million were recorded as a reduction of revenue, separate from reported marketing expense. Capital expenditures were $12.8 million; management expects approximately $4 million to $7 million in FY2025.
Material changes versus FY2023
- Revenue increased 32.0%, reflecting sustained elevated domestic and outbound travel demand; gross bookings rose 21.1%.
- Operating profit rose to $65.2 million from $23.6 million, while operating cash flow increased to $125.7 million from $32.2 million.
- Reported net profit swung to $216.7 million from an $11.2 million loss. The FY2024 result included a $123.8 million income tax benefit, principally from recognizing deferred tax assets, and a $30.6 million gain from a change in the carrying value of the 2028 Notes. Adjusted net profit was $137.2 million.
- Air Adjusted Margin percentage declined to 6.4% from 6.8%; hotels and packages rose to 17.6% from 16.7%, and bus rose to 9.9% from 8.9%. The company says the latter increases were primarily affected by a reclassification of distribution costs beginning in FY2024; prior-year amounts were not reclassified.
- Other operating expenses increased 53.2% to $204.8 million, including higher payment-processing, outsourcing, hosting and distribution costs and a $10.0 million impairment provision related to Go First advances.
Outlook, risks and unusual items
- Outlook: No quantified revenue or earnings guidance is provided. Management says available cash, operating cash flows and working-capital facilities should cover needs for the foreseeable future and at least 12 months after filing. It plans continued investment in hotels and packages, technology, customer acquisition and expansion of services and markets.
- Debt: The company has $230 million principal amount of 0.00% convertible notes, due February 2028, with a holder repurchase right on February 15, 2026. No notes were tendered under the February 2024 repurchase right. The balance-sheet carrying amount was $201.2 million at March 31, 2024. The notes’ accounting gain contributed $30.6 million to FY2024 results.
- Go First exposure: Advances and related amounts due from the suspended airline totaled $20.9 million at March 31, 2024, including $10.9 million of customer refunds. The company recorded a $10.0 million impairment provision; recoverability remains uncertain amid insolvency proceedings and aircraft deregistration.
- Competition proceeding: India’s Competition Commission imposed an aggregate penalty of Rs. 2,234.8 million (about $26.8 million) and behavioral directions concerning hotel agreements and property disclosure. The companies appealed; the penalty was stayed pending appeal, and the filing reported a hearing scheduled for July 23, 2024.
- Other contingencies: The filing describes multiple Indian tax and GST disputes, and proceedings concerning whether redBus requires a license under the Motor Vehicles Act. Management generally assesses the likelihood of adverse outcomes as remote. A large redBus service-tax appeal was decided in its favor in June 2024, subject to possible further appeal. These matters warrant review against the detailed disclosures and subsequent developments.
- Key business risks: Travel-demand shocks, supplier concentration and supplier contract terms, intense discounting and airline commission pressure, foreign-exchange exposure without hedging, cybersecurity and privacy obligations, evolving Indian regulation, and reliance on third-party technology and service providers. A 10% U.S. dollar appreciation against the rupee would, all else equal, reduce FY2024 profit by an estimated $21.5 million.
- Control and reporting: Management and the auditor reported effective internal control over financial reporting as of March 31, 2024, but the assessment excluded Savaari during its first year of consolidation. KPMG issued unqualified opinions on the financial statements and internal controls. Recoverability of deferred tax assets was identified as a critical audit matter.
Important facts for investors to verify
- How much of reported FY2024 profit is sustainable after excluding the $123.8 million tax benefit and $30.6 million notes-related gain; compare IFRS results with the company’s non-IFRS reconciliations.
- Recoverability and timing of the $20.9 million Go First-related balance, including customer refunds and the impairment recorded.
- Outcome and potential financial or operational effect of the CCI appeal, tax/GST proceedings, and redBus licensing case.
- Cash availability after restricted or pledged deposits, operating requirements and the February 2026 note repurchase right; confirm the note balance and potential dilution on conversion.
- Underlying segment economics, including customer inducement spending, airline commission trends, and the effect of distribution-cost reclassification on year-over-year margin comparisons.
- Approval status and expected effects of the proposed redBus India–MMT India merger, and integration performance of Savaari and other recent acquisitions.