Intangible Assets and Goodwill

12 Months Ended

Mar. 31, 2024

Disclosure Of Intangible Assets And Goodwill [Abstract]

19)

INTANGIBLE ASSETS AND GOODWILL


							Other intangible assets
Particulars	Goodwill			Technology Related Development Cost			Customer Relationship			Non- Compete			Brand / Trade Mark			Software			Others			Intangible assets under development*			Total
Cost
Balance as at April 1, 2022		880,323			70,359			10,581			901			132,473			5,069			661			4,372			1,104,739
Acquisitions through business combination (refer note 7 (b) and 7 (c))		8,558			1,052			—			—			304			6			—			—			9,920
Additions/adjustments*		—			7,654			—			—			—			274			1,183			301			9,412
Disposals		—			(1,868	)		—			—			—			(669	)		—			—			(2,537	)
Effect of movements in foreign exchange rates		(55,218	)		(5,170	)		(738	)		(32	)		(9,747	)		(344	)		(45	)		(423	)		(71,717	)
Balance as at March 31, 2023		833,663			72,027			9,843			869			123,030			4,336			1,799			4,250			1,049,817
Balance as at April 1, 2023		833,663			72,027			9,843			869			123,030			4,336			1,799			4,250			1,049,817
Acquisitions through business combination (refer note 7 (d))		6,328			499			—			—			248			12			—			—			7,087
Additions/adjustments*		—			6,769			—			—			—			369			1,087			(1,305	)		6,920
Disposals		—			(4,177	)		—			—			—			(1	)		—			—			(4,178	)
Effect of movements in foreign exchange rates		(7,946	)		(928	)		(122	)		(8	)		(1,589	)		(51	)		(45	)		(178	)		(10,867	)
Balance as at March 31, 2024		832,045			74,190			9,721			861			121,689			4,665			2,841			2,767			1,048,779
Accumulated amortization and impairment losses
Balance as at April 1, 2022		279,172			52,196			6,260			664			73,626			4,647			23			2,493			419,081
Amortization for the year		—			6,864			1,202			60			11,559			179			1,286			—			21,150
Impairment for the year		—			—			—			—			—			—			—			150			150
Disposals		—			(1,868	)		—			—			—			(665	)		—			—			(2,533	)
Effect of movements in foreign exchange rates		(7,012	)		(3,645	)		(420	)		(14	)		(5,292	)		(318	)		(31	)		(273	)		(17,005	)
Balance as at March 31, 2023		272,160			53,547			7,042			710			79,893			3,843			1,278			2,370			420,843
Balance as at April 1, 2023		272,160			53,547			7,042			710			79,893			3,843			1,278			2,370			420,843
Amortization for the year		—			6,660			771			58			11,159			188			973			—			19,809
Impairment for the year		—			—			—			—			—			—			—			22			22
Disposals		—			(3,195	)		—			—			—			(1	)		—			—			(3,196	)
Effect of movements in foreign exchange rates		—			(672	)		(88	)		(7	)		(1,054	)		(57	)		(25	)		(182	)		(2,085	)
Balance as at March 31, 2024		272,160			56,340			7,725			761			89,998			3,973			2,226			2,210			435,393
Carrying amounts
As at April 1, 2022		601,151			18,163			4,321			237			58,847			422			638			1,879			685,658
As at March 31, 2023		561,503			18,480			2,801			159			43,137			493			521			1,880			628,974
As at April 1, 2023		561,503			18,480			2,801			159			43,137			493			521			1,880			628,974
As at March 31, 2024		559,885			17,850			1,996			100			31,691			692			615			557			613,386

* Represents addition of USD 6,455 (March 31, 2023: USD 8,882) to intangible assets under development, adjusted for amounts capitalized out of intangible assets under development amounting to USD 7,760 (March 31, 2023: USD 8,581).

Impairment testing for CGUs containing goodwill

For the purpose of impairment testing, goodwill is allocated to a CGU representing the lowest level within the Group at which goodwill is monitored for internal management purposes, and which is not higher than the Group’s operating segment.

The allocation of goodwill to the CGUs is as follows:


	As at March 31
Particulars	2023		2024
Air ticketing		223,552		224,184
Hotels and packages		206,946		206,863
Bus ticketing		127,292		125,494
Other units without significant goodwill		3,713		3,344
Total		561,503		559,885

The recoverable amount of these CGUs was based on its value in use and was determined by discounting the future cash flows to be generated from the continuing use of the CGUs. These calculations use cash flow projections over a period of five years, based on next year financial budgets approved by management, with extrapolation for the remaining period, and an average of the range of assumptions as mentioned below.

The key assumptions used in the estimation of value are set out as below. The values assigned to the key assumptions represent management's assessment of future trends in the relevant industries and have been based on the historical data from both external and internal sources.:


	Air ticketing		Hotels and packages		Bus ticketing
	As at March 31		As at March 31		As at March 31
Particulars	2023	2024	2023	2024	2023	2024
Discount rate (pre-tax)	19.5%	18.4%	19.8%	19.0%	19.7%	19.5%
Discount rate (post-tax)	17.2%	16.2%	17.2%	16.2%	17.2%	16.2%
Terminal value growth rate	4.5%	4.5%	4.5%	4.5%	4.0%	4.0%
Adjusted margin growth rate	12.0% - 23.1%	8.1% - 15.5%	8.1% - 25.4%	13.3% - 16.8%	12.0% - 22.8%	11.0% - 18.6%
EBITDA margin* (5 years)	4.7% - 11.3%	7.3% - 8.7%	14.1% - 20.4%	13.3% - 19.1%	14.5% - 18.9%	22.3% - 24.4%

* EBITDA margin is defined as Earnings before interest, tax, depreciation and amortization (EBITDA) as a percentage of adjusted margin.

The above pre-tax discount rate is based on the Weighted Average Cost of Capital (WACC) of comparable market participant, which is adjusted for specific risks.

These estimates are likely to differ from future actual results of operations and cash flows.

The cash flow projections included specific estimates for five years and a terminal growth rate thereafter. The terminal growth rate, Adjusted margin growth rate and EBITDA margins were determined based on management's estimate. Budgeted EBITDA margin was based on expectations of future outcomes taking into account past experience, adjusted for anticipated Adjusted margin growth. Adjusted margin growth was projected taking into account the average growth levels experienced in past and the estimated adjusted margin growth for future. The estimation of value in use reflects numerous assumptions that are subject to various risks and uncertainties, including key assumptions regarding expected growth rates and EBITDA margin, as well as other key assumptions with respect to matters outside of the Group's control. It requires significant judgments and estimates, and actual results could be materially different than the judgments and estimates used to estimate value in use.

Based on the above, no impairment was identified as at March 31, 2023 and March 31, 2024 as the recoverable value of the CGUs exceeded the carrying value. No reasonably possible change in any of the above key assumptions would cause the carrying amount of these CGUs to exceed their recoverable amount.

During the year ended March 31, 2019 the Company acquired Bitla Software Private Limited ("Bitla"), a technology service provider to bus operators as wholly owned subsidiary through Redbus India Private Limited (formerly ibibo Group Private Limited). The Company had recognised goodwill on the date of acquisition of USD 6,304.

With effect from February 1, 2023, pursuant to the Scheme of Arrangement ("Scheme") between Redbus India Private Limited (formerly ibibo Group Private Limited) (“Ibibo India”) and MakeMyTrip (India) Private Limited (“MMT India”) approved by The National Company Law Tribunal, India, air ticketing and hotel business of Ibibo India has been transferred to MMT India and Ibibo India continues to run the remaining bus ticketing business, i.e. RedBus business in India.

After such transfer, the management now monitors operations and makes decisions for the combined Bus business of the Group and therefore had reorganized its reporting structure as well to align with the same. Consequently, the goodwill of Bitla having carrying value of USD 5,298 (as at February 1, 2023) was re-allocated to the Bus ticketing CGU and reassessed for impairment at the level of the Bus ticketing CGU. The Group tested goodwill for impairment immediately before and after the reorganisation and concluded that the recoverable amounts of CGUs exceeded their corresponding carrying amounts and therefore there was no impairment recognized.