0001564590-18-014577.txt : 20180530 0001564590-18-014577.hdr.sgml : 20180530 20180530063726 ACCESSION NUMBER: 0001564590-18-014577 CONFORMED SUBMISSION TYPE: 6-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20180331 FILED AS OF DATE: 20180530 DATE AS OF CHANGE: 20180530 FILER: COMPANY DATA: COMPANY CONFORMED NAME: MakeMyTrip Ltd CENTRAL INDEX KEY: 0001495153 STANDARD INDUSTRIAL CLASSIFICATION: TRANSPORTATION SERVICES [4700] IRS NUMBER: 000000000 STATE OF INCORPORATION: O4 FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: 6-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-34837 FILM NUMBER: 18866482 BUSINESS ADDRESS: STREET 1: 19TH FLOOR, BUILDING NO.5, STREET 2: DLF CYBER CITY, CITY: GURGAON STATE: K7 ZIP: 122002 BUSINESS PHONE: 91 124 439 5000 MAIL ADDRESS: STREET 1: 19TH FLOOR, BUILDING NO.5, STREET 2: DLF CYBER CITY, CITY: GURGAON STATE: K7 ZIP: 122002 6-K 1 mmyt-6k_20180331.htm FORM 6-K mmyt-6k_20180331.htm

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

Form 6-K

 

Report of Foreign Private Issuer

Pursuant to Rule 13a-16 or 15d-16

under the Securities Exchange Act of 1934

For the quarter and year ended March 31, 2018

Commission File Number 001-34837

 

MAKEMYTRIP LIMITED

(Translation of registrant’s name into English)

 

19th Floor, Building No. 5

DLF Cyber City

Gurgaon, India, 122002

(Address of principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

Form 20-F              Form 40-F  

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):  

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):  

 

 

 

 


 

Other Events

1.

Announcement of Unaudited Financial Results for the Quarter and Year ended March 31, 2018

On May 30, 2018, MakeMyTrip Limited (“MakeMyTrip”) issued an earnings release announcing its unaudited financial results for the fiscal fourth quarter 2018 (i.e. quarter ended March 31, 2018) and for the fiscal year 2018 (i.e. year ended March 31, 2018). A copy of the earnings release dated May 30, 2018 is attached hereto as Exhibit 99.1.

MakeMyTrip is incorporating by reference the information set forth in the body of this Form 6-K and certain information set forth in Exhibit 99.1 (only its unaudited condensed consolidated financial statements as of March 31, 2018 and for the three months and years ended March 31, 2018 and 2017 comprising “Condensed Consolidated Statement Of Financial Position”, “Condensed Consolidated Statement Of Profit Or Loss And Other Comprehensive Income (Loss)”, “Condensed Consolidated Statement Of Changes In Equity”, “Condensed Consolidated Statement Of Cash Flows” and “Reconciliation Of IFRS To Non-IFRS Financial Measures”, and the sections titled, “Other Information — Share Repurchase”, “Fiscal 2018 Fourth Quarter Financial Results”, “Fiscal 2018 Full Year Financial Results”, “About Non-IFRS Financial Measures” and “Safe Harbor Statement”) into its two automatically effective resale shelf registration statements on Form F-3 (File No. 333-219337) dated July 18, 2017, as amended, and Form F-3 (File No. 333-219342) dated July 19, 2017, as amended.

 


 

Exhibit

99.1

Earnings release of MakeMyTrip Limited dated May 30, 2018.

 

 


 

EXHIBIT INDEX

 

 


 

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Date: May 30, 2018

 

MAKEMYTRIP LIMITED

 

 

 

By:

 

/s/ Deep Kalra

Name:

 

Deep Kalra

Title:

 

Group Chairman and Group Chief Executive Officer

 

 

EX-99 2 mmyt-ex99_6.htm EX-99.1 mmyt-ex99_6.htm

 

Exhibit 99.1

 

MAKEMYTRIP LIMITED ANNOUNCES FISCAL 2018 FOURTH QUARTER AND FULL YEAR RESULTS

Financial Highlights for Fiscal 2018 Fourth Quarter and Full Year

(Year over Year (YoY) growth % are based on constant currency (1); please see table below for YoY growth % on actual basis)

Room nights (8) for MMT India (6) Standalone Hotels – Online increased by 132.7% YoY in 4Q18 and by 130.7% YoY in FY18.

Flight segments (9) for Air ticketing business increased by 55.1% YoY in 4Q18 and by 62.2% YoY in FY18.

Revenue increased 27.3% YoY in 4Q18 and 46.8% YoY in FY18.

Revenue less service costs (2) increased 67.2% YoY in 4Q18 and 106.6% YoY in FY18.

Revenue less service costs (2) for Hotels and packages increased 54.5% YoY in 4Q18 and 119.0% YoY in FY18.

Adjusted Operating Profit (Loss)(3) improved to a loss of $23.5 million in 4Q18 versus a loss of $33.9 million in 3Q18.

Gurgaon, India and New York, May 30, 2018 — MakeMyTrip Limited (NASDAQ: MMYT), India’s leading online travel company, today announced its unaudited financial and operating results for its fourth fiscal quarter and full fiscal year ended March 31, 2018.

“In Fiscal Year 2018, we successfully integrated two leading online travel brands, increased our market leadership and achieved record bookings and net revenue scale while greatly narrowing our operating losses,” said Deep Kalra, Founder, Group Chairman and Group CEO. “With our industry leading scale, focus on customer experience and technology innovations, we believe we can continue to expand our leadership and outpace market growth in the nascent India online travel market for the years to come.”

MakeMyTrip’s financial and operating results for the fiscal 2018 fourth quarter and full year include the financial and operating results of ibibo Group Holdings (Singapore) Pte. Ltd. and its subsidiaries (“ibibo Group”) which we acquired on January 31, 2017.

 

(in thousands except EPS)

 

3 months

Ended

March 31,

2017

 

 

3 months

Ended

March 31,

2018

 

 

YoY

Change

 

 

YoY Change

in constant

currency(1)

 

 

 

 

Year Ended

March 31,

2017

 

 

Year Ended

March 31,

2018

 

 

YoY

Change

 

 

YoY Change

in constant

currency(1)

 

Financial Summary as per IFRS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

120,033

 

 

$

157,806

 

 

 

31.5

%

 

 

27.3

%

 

 

 

$

447,616

 

 

$

675,256

 

 

 

50.9

%

 

 

46.8

%

Results from Operating Activities

 

$

(75,316

)

 

$

(41,692

)

 

 

 

 

 

 

 

 

 

 

 

$

(135,387

)

 

$

(219,439

)

 

 

 

 

 

 

 

 

Loss for the period

 

$

(73,098

)

 

$

(44,117

)

 

 

 

 

 

 

 

 

 

 

 

$

(110,303

)

 

$

(220,240

)

 

 

 

 

 

 

 

 

Diluted Loss per share

 

$

(0.93

)

 

$

(0.42

)

 

 

 

 

 

 

 

 

 

 

 

$

(2.09

)

 

$

(2.18

)

 

 

 

 

 

 

 

 

Financial Summary as per

   non-IFRS measures

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue Less Service Costs(2)

 

$

85,088

 

 

$

145,307

 

 

 

70.8

%

 

 

67.2

%

 

 

 

$

273,697

 

 

$

577,120

 

 

 

110.9

%

 

 

106.6

%

Air Ticketing

 

$

32,862

 

 

$

58,474

 

 

 

77.9

%

 

 

73.8

%

 

 

 

$

118,514

 

 

$

202,064

 

 

 

70.5

%

 

 

66.3

%

Hotels & packages

 

$

43,935

 

 

$

69,366

 

 

 

57.9

%

 

 

54.5

%

 

 

 

$

140,335

 

 

$

313,684

 

 

 

123.5

%

 

 

119.0

%

Other

 

$

8,291

 

 

$

17,467

 

 

 

110.7

%

 

 

108.7

%

 

 

 

$

14,848

 

 

$

61,372

 

 

 

313.3

%

 

 

310.1

%

Adjusted Operating Loss(3)

 

$

(35,779

)

 

$

(23,546

)

 

 

 

 

 

 

 

 

 

 

 

$

(83,711

)

 

$

(154,806

)

 

 

 

 

 

 

 

 

Adjusted Net Loss(4)

 

$

(33,070

)

 

$

(25,760

)

 

 

 

 

 

 

 

 

 

 

 

$

(99,157

)

 

$

(153,518

)

 

 

 

 

 

 

 

 

Adjusted Diluted loss per share(4)

 

$

(0.42

)

 

$

(0.25

)

 

 

 

 

 

 

 

 

 

 

 

$

(1.88

)

 

$

(1.53

)

 

 

 

 

 

 

 

 

Operating Metrics

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Bookings(5)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Air Ticketing

 

$

455,906

 

 

$

743,189

 

 

 

63.0

%

 

 

58.2

%

 

 

 

$

1,545,151

 

 

$

2,704,522

 

 

 

75.0

%

 

 

69.9

%

Hotels & packages

 

$

214,202

 

 

$

305,121

 

 

 

42.4

%

 

 

38.7

%

 

 

 

$

745,135

 

 

$

1,389,623

 

 

 

86.5

%

 

 

81.9

%

Number of Transactions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Air Ticketing

 

 

2,711

 

 

 

4,248

 

 

 

56.7

%

 

 

 

 

 

 

 

 

9,379

 

 

 

15,185

 

 

 

61.9

%

 

 

 

 

Hotels & packages

 

 

2,353

 

 

 

2,858

 

 

 

21.5

%

 

 

 

 

 

 

 

 

6,873

 

 

 

13,196

 

 

 

92.0

%

 

 

 

 

Number of flight segments /

   room nights

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Air Ticketing – Flight segments(9)

 

 

6,009

 

 

 

9,318

 

 

 

55.1

%

 

 

 

 

 

 

 

 

20,560

 

 

 

33,339

 

 

 

62.2

%

 

 

 

 

Hotels & packages – Room

   nights(8)

 

 

3,568

 

 

 

4,887

 

 

 

37.0

%

 

 

 

 

 

 

 

 

10,535

 

 

 

21,911

 

 

 

108.0

%

 

 

 

 

Standalone Hotels –

   Online(7) –   Room nights

 

 

2,025

 

 

 

4,712

 

 

 

132.7

%

 

 

 

 

 

 

 

 

9,102

 

 

 

20,998

 

 

 

130.7

%

 

 

 

 

 


Notes:

(1)

Constant currency refers to our financial results assuming constant foreign exchange rates for the current fiscal period based on the reporting for the historical average rate used in the prior year’s comparable fiscal period.

(2)

Represents IFRS revenue after deducting cost for the acquisition of relevant services and products for sale to customers and adding expenses in the nature of promotions which had been adjusted against revenue. IFRS refers to International Financial Reporting Standards as issued by the International Accounting Standards Board.

(3)

Results from operating activities excluding employee share-based compensation costs, impairment of intangible assets, merger and acquisitions related expenses, amortization of acquisition related intangibles and severance cost related to a prior acquisition.

(4)

Profit (Loss) for the period excluding employee share-based compensation costs, impairment of intangible assets, merger and acquisitions related expenses, amortization of acquisition related intangibles, severance cost related to a prior acquisition, net change in fair value of derivative financial instrument, net change in value of financial liability in business combination, share of loss of equity-accounted investees, and income tax expense.

(5)

Represents the total amount paid by our customers for the travel services and products booked through us, including taxes, fees and other charges, net of cancellations, discounts and refunds.

(6)

MMT India refers to our Indian subsidiaries "MakeMyTrip (India) Private Limited" and “Ibibo Group Private Limited”.

(7)

Standalone Hotels - Online include Standalone Hotels booked on Desktops, laptops, mobiles and other online platforms.

(8)

“Room nights,” also referred to as a “hotel-room nights,” is the total number of hotel rooms occupied by a customer or group, multiplied by the number of nights that such customer or group occupies those rooms.

(9)

“Flight segment” means a flight between two cities, whether or not such flight is part of a larger or longer itinerary.

 

Please see “About Non-IFRS Financial Measures” included within this release to understand the importance of the measures set forth in notes (1) to (9) above. Reconciliations of IFRS financial measures to non-IFRS measures, and operating results are included at the end of this release.

 

Other information

 

Share Repurchase

 

On November 6, 2012, our Board of Directors authorized the Company to purchase outstanding ordinary shares, par value $0.0005 per share, of the Company. On January 22, 2016, our Board of Directors authorized the Company to increase the share repurchase plan to an amount aggregating up to $150 million at a price per ordinary share not exceeding $21.50 until November 30, 2021. As of March 31, 2018, we had remaining authority to repurchase up to approximately $136.0 million of our outstanding ordinary shares.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


MakeMyTrip Limited’s financial and operating results for the fiscal 2018 fourth quarter and full year include the financial and operating results of ibibo Group, which was acquired on January 31, 2017.  Accordingly, the reported results of fiscal 2018 fourth quarter and full year which is inclusive of the impact of the consolidation of the ibibo Group may not be comparable with the reported result of fiscal 2017 fourth quarter and full year which had the impact of the consolidation of the ibibo Group for 2 months.

Comparable Selected Operating and Financial Data (Unaudited) post consolidation of the ibibo Group is provided for the first, second, third and fourth quarter of Fiscal 2018 separately.

Fiscal 2018 Fourth Quarter Financial Results

Revenue. We generated revenue of $157.8 million in the quarter ended March 31, 2018, an increase of 31.5% (27.3% in constant currency) over revenue of $120.0 million in the quarter ended March 31, 2017.

Air Ticketing. Revenue from our air ticketing business increased by 37.8% (33.6% in constant currency) to $45.3 million in the quarter ended March 31, 2018 from $32.9 million in the quarter ended March 31, 2017.

Revenue less service costs from our air ticketing business increased by 77.9% (73.8% in constant currency) to $58.5 million in the quarter ended March 31, 2018 from $32.9 million in the quarter ended March 31, 2017. In the quarter ended March 31, 2018, air ticketing revenue less service costs includes $13.2 million of certain customer discounts which are in the nature of promotion expenses adjusted against revenue. This $13.2 million added back to revenue less service costs, with the accompanying increase in marketing and sales promotions expenses, is intended to more accurately reflect the way the company views its ongoing business and spends. Under IFRS, these customer discounts were required to be offset against revenue. The increase in air ticketing revenue and revenue less service costs was due to an increase in gross bookings of 63.0% (58.2% in constant currency) driven by 55.1% increase in the number of air ticketing flight segments year over year including the impact of consolidation of the ibibo Group acquired on January 31, 2017. Further, our net revenue margin (defined as revenue less service cost as a percentage of gross bookings) increased from 7.2% in the quarter ended March 31, 2017 to 7.9% in the quarter ended March 31, 2018.

Hotels and Packages. Revenue from our hotels and packages business increased by 18.4% (14.0% in constant currency) to $93.4 million in the quarter ended March 31, 2018, from $78.9 million in the quarter ended March 31, 2017. Our revenue less service costs increased by 57.9% (54.5% in constant currency) to $69.4 million in the quarter ended March 31, 2018 from $43.9 million in the quarter ended March 31, 2017. In the quarter ended March 31, 2018, hotels and packages revenue less service costs includes $11.0 million of certain customer discounts which are in the nature of promotion expenses adjusted against revenue. This $11.0 million added back to revenue less services costs, with the accompanying increase in marketing and sales promotions expenses, is intended to more accurately reflect the way the company views its ongoing business and spends. Under IFRS, these customer discounts were required to be offset against revenue. Gross bookings increased by 42.4% (38.7% in constant currency) driven by 37.0% increase in the number of hotels room-nights year over year including the impact of consolidation of the ibibo Group acquired on January 31, 2017. Net revenue margin has improved from 20.5% in the quarter ended March 31, 2017 to 22.7% in the quarter ended March 31, 2018 driven by increasing mix of standalone hotels bookings as a percentage of overall transactions.

Other Revenue. Our other revenue increased to $19.1 million in the quarter ended March 31, 2018 from $8.3 million in the quarter ended March 31, 2017, and our other revenue less service cost increased to $17.5 million in the quarter ended March 31, 2018 from $8.3 million in the quarter ended March 31, 2017. This was primarily due to bus ticketing revenue less service costs of $12.0 million in the quarter ended March 31, 2018 mainly contributed by ibibo Group consolidation coming from 11.0 million travelled bus tickets with gross bookings of $135.6 million. The increase in other revenue was further aided by growth in facilitation fees on travel insurance.

Total Revenue less Service Costs. Our total revenue less service costs increased by 70.8% (67.2% in constant currency) to $145.3 million in the quarter ended March 31, 2018 from $85.1 million in the quarter ended March 31, 2017, primarily as a result of a 57.9% (54.5% in constant currency) increase in our hotels and packages revenue less service costs, a 77.9% (73.8% in constant currency) increase in our air ticketing revenue less service costs and increase in our other revenue less service costs including the impact of consolidation of the ibibo Group acquired on January 31, 2017.

 


In the quarter ended March 31, 2018, revenue less service costs also includes $24.2 million of certain customer discounts which are in the nature of promotion expenses adjusted against revenue. For further information and a reconciliation of this non-IFRS measure to the most directly comparable IFRS measure (revenue), see “About Non-IFRS Financial Measures” and “Reconciliation of IFRS to Non-IFRS Financial Measures” elsewhere in this Report.

Personnel Expenses. Personnel expenses decreased by 13.1% to $28.4 million in the quarter ended March 31, 2018 from $32.7 million in the quarter ended March 31, 2017 mainly due to the higher share based compensation costs in the quarter ended March 31, 2017 including a one-time share-based compensation cost of $9.0 million recorded as part of the ibibo Group acquisition. Excluding employee share-based compensation costs, personnel expenses as a percentage of net revenue decreased by 6.0% year over year.

Marketing and sales promotion expenses. Marketing and sales promotion expenses increased by 19.1% to $93.9 million in the quarter ended March 31, 2018 from $78.8 million in the quarter ended March 31, 2017. Marketing and sales promotion expenses primarily include significant customer inducement and acquisition programs expenses incurred to accelerate growth in our standalone hotel booking business and brand advertisement expenses. Primary drivers of this year over year increase was the consolidation of marketing and sales promotion expenses of the ibibo Group acquired on January 31, 2017. Including the promotion expenses of $24.2 million adjusted against revenue as explained above, marketing and sales promotion expenses increased by 49.7% year over year. These expenses at $118.1 million were lower than the total revenue less service costs of $145.3 million in the quarter ended March 31, 2018 compared to being at $133.3 million and total revenue less service costs of $151.4 million as reported in the previous quarter.

Other Operating Expenses. Other operating expenses increased by 10.1% to $30.1 million in the quarter ended March 31, 2018 from $27.3 million in the quarter ended March 31, 2017, primarily as a result of an increase in payment gateway charges and outsourcing expenses in line with the growth in our business and contribution of other operating expenses of the ibibo Group acquired on January 31, 2017. Other operating expenses for the quarter ended March 31, 2017 also include merger and acquisition related expenses of $4.2 million, comprising legal and professional expenses, other expenses associated with our acquisition of the ibibo Group and certain non-routine transactions, whether or not consummated.

Depreciation, Amortization and Impairment. Our depreciation, amortization and impairment expenses decreased to $10.6 million in the quarter ended March 31, 2018 from $21.6 million in the quarter ended March 31, 2017, primarily as a result of impairment of goodwill and brands related to HT Group of $14.6 million, as we decided to significantly reduce our HT Group operations in the quarter ended March 31, 2017, partially offset by impairment of technology related development cost of $2.9 million related to one of the subsidiary of the Company during the quarter ended March 31, 2018.

Results from Operating Activities. As a result of the foregoing factors, our results from operating activities were a loss of $41.7 million in the quarter ended March 31, 2018 as compared to a loss of $75.3 million in the quarter ended March 31, 2017. Excluding the effects of our employee share-based compensation costs, impairment of intangibles assets, and amortization of acquisition related intangibles for the fourth quarter of both fiscal years 2018 and 2017, and merger and acquisitions related expenses for the quarter ended March 31, 2017, we would have recorded an operating loss of $23.5 million in the quarter ended March 31, 2018 as compared with an operating loss of $35.8 million in the quarter ended March 31, 2017.

Net Finance Income (Costs). Our net finance cost was $2.2 million in the quarter ended March 31, 2018 as compared to net finance income of $2.7 million in the quarter ended March 31, 2017, primarily due to a foreign exchange loss of $2.4 million in the quarter ended March 31, 2018 as compared to a foreign exchange gain of $2.5 million in the quarter ended March 31, 2017 mainly as a result of the appreciation of the Indian Rupee against the U.S. dollar during the quarter ended March 31, 2018.

Loss for the period. As a result of the foregoing factors, our loss for the quarter ended March 31, 2018 was $44.1 million as compared to a loss of $73.1 million in the quarter ended March 31, 2017. Excluding the effects of employee share-based compensation costs, amortization of acquisition related intangibles, share of loss of equity-accounted investees, impairment of intangibles assets, and income tax expense for both quarters ended March 31, 2018 and 2017, and merger and acquisitions related expenses for the quarter ended March 31, 2017, we would have recorded a net loss of $25.8 million in the quarter ended March 31, 2018 and a net loss of $33.1 million in the quarter ended March 31, 2017.

Diluted Loss per share. Diluted loss per share was $0.42 for the quarter ended March 31, 2018 as compared to diluted loss per share of $0.93 in the quarter ended March 31, 2017. After adjusting for employee share-based compensation costs, amortization of acquisition related intangibles, share of loss of equity-accounted investees, impairment of intangibles assets, and income tax expense for both quarters ended March 31, 2018 and 2017, and merger and acquisitions related expenses for the quarter ended March 31, 2017, diluted loss per share would have been $0.25 in the quarter ended March 31, 2018, compared to diluted loss per share of $0.42 in the quarter ended March 31, 2017.

 


Fiscal 2018 Full Year Financial Results

Revenue. We generated revenue of $675.3 million in the year ended March 31, 2018, an increase of 50.9% (46.8% in constant currency) over revenue of $447.6 million in the year ended March 31, 2017. In the year ended March 31, 2017, we recognized incremental revenue of $9.2 million in our air ticketing business based on quarterly evaluation of trends of refund rights exercised by our customers along with a change in the estimate for provision for cancelled tickets pursuant to confirmation from a vendor. Excluding incremental revenue, our revenue increased by 54.0% (49.9% in constant currency).

Air Ticketing. Revenue from our air ticketing business increased by 41.2% (37.1% in constant currency) to $167.4 million in the year ended March 31, 2018 from $118.5 million in the year ended March 31, 2017. Excluding incremental revenue as explained above, our air ticketing revenue increased by 53.1% (48.7% in constant currency).

Revenue less service costs from our air ticketing business increased by 70.5% (66.3% in constant currency) to $202.1 million in the year ended March 31, 2018 from $118.5 million in the year ended March 31, 2017. Excluding incremental revenue as explained above, revenue less service costs increased by 84.8% (80.3% in constant currency). In the year ended March 31, 2018, air ticketing revenue less service costs includes $34.7 million of certain customer discounts which are in the nature of promotion expenses adjusted against revenue. This $34.7 million added back to revenue less services costs, with the accompanying increase in marketing and sales promotions expenses, is intended to more accurately reflect the way the company views its ongoing business and spends. Under IFRS, these customer discounts were required to be offset against revenue. The increase in air ticketing revenue and revenue less service costs was due to an increase in gross bookings of 75.0% (69.9% in constant currency) driven by 62.2% increase in the number of air ticketing flight segments year over year including the impact of consolidation of the ibibo Group acquired on January 31, 2017. Further, our net revenue margin (defined as revenue less service cost as a percentage of gross bookings) decreased from 7.7% in the year ended March 31, 2017 to 7.5% in the year ended March 31, 2018. Excluding incremental revenue of $9.2 million in the year ended March 31, 2017 explained above, our net revenue margin increased from 7.1% in the year ended March 31, 2017 to 7.5% in the year ended March 31, 2018.

Hotels and Packages. Revenue from our hotels and packages business increased by 40.0% (35.9% in constant currency) to $440.0 million in the year ended March 31, 2018, from $314.3 million in the year ended March 31, 2017. Our revenue less service costs increased by 123.5% (119.0% in constant currency) to $313.7 million in the year ended March 31, 2018 from $140.3 million in the year ended March 31, 2017. In the year ended March 31, 2018, hotels and packages revenue less service costs includes $43.1 million of certain customer discounts which are in the nature of promotion expenses adjusted against revenue. This $43.1 million added back to revenue less services costs, with the accompanying increase in marketing and sales promotions expenses, is intended to more accurately reflect the way the company views its ongoing business and spends. Under IFRS, these customer discounts were required to be offset against revenue. Gross bookings increased by 86.5% (81.9% in constant currency) driven by 108.0% increase in the number of hotels room-nights year over year including the impact of consolidation of the ibibo Group acquired on January 31, 2017. Net revenue margin has improved from 18.8% in the year ended March 31, 2017 to 22.6% in the year ended March 31, 2018 driven by increasing mix of standalone hotels bookings as a percentage of overall transactions.

Other Revenue. Our other revenue increased to $67.9 million in the year ended March 31, 2018 from $14.8 million in the year ended March 31, 2017, and our other revenue less service cost increased to $61.4 million in the year ended March 31, 2018 from $14.8 million in the year ended March 31, 2017. This was primarily due to bus ticketing revenue less service costs of $44.4 million in the year ended March 31, 2018 mainly contributed by ibibo Group consolidation coming from              39.6 million travelled bus tickets with gross bookings of $496.9 million. The increase in other revenue was further aided by growth in facilitation fees on travel insurance.

Total Revenue less Service Costs. Our total revenue less service costs increased by 110.9% (106.6% in constant currency) to $577.1 million in the year ended March 31, 2018 from $273.7 million in the year ended March 31, 2017, primarily as a result of a 123.5% (119.0% in constant currency) increase in our hotels and packages revenue less service costs, a 70.5% (66.3% in constant currency) increase in our air ticketing revenue less service costs and increase in our other revenue less service costs including the impact of consolidation of the ibibo Group acquired on January 31, 2017. Excluding incremental revenue recorded in the year ended March 31, 2017 as explained above our total revenue less service costs increased by 118.2% (113.8% in constant currency).

In the year ended March 31, 2018, revenue less service costs also includes $77.7 million of certain customer discounts which are in the nature of promotion expenses adjusted against revenue. For further information and a reconciliation of this non-IFRS measure to the most directly comparable IFRS measure (revenue), see “About Non-IFRS Financial Measures” and “Reconciliation of IFRS to Non-IFRS Financial Measures” elsewhere in this Report.

 

 


Personnel Expenses. Personnel expenses increased by 54.8% to $114.2 million in the year ended March 31, 2018 from $73.7 million in the year ended March 31, 2017. This increase was primarily due to higher share- based compensation costs, annual increase in wages and the impact of consolidation of the ibibo Group acquired on January 31, 2017. Excluding employee share-based compensation costs, personnel expenses as a percentage of net revenue decreased by 5.1% year over year in the year ended March 31, 2018.

Marketing and Sales Promotion Expenses. Marketing and sales promotion expenses increased by 101.3% to $451.8 million in the year ended March 31, 2018 from $224.4 million in the year ended March 31, 2017. Primary drivers of this year over year increase include significant customer inducement and acquisition programs expenses incurred to accelerate growth in our standalone hotel booking business and increase in brand advertisement expenses that was incurred in the year ended March 31, 2018 and the consolidation of marketing and sales promotion expenses of the ibibo Group acquired on January 31, 2017. Including the promotion expenses of $77.7 million adjusted against revenue as explained above, marketing and sales promotion expenses increased by 136.0% year over year.

Other Operating Expenses. Other operating expenses increased by 47.8% to $120.6 million in the year ended March 31, 2018 from $81.6 million in the year ended March 31, 2017, primarily as a result of an increase in payment gateway charges and outsourcing expenses in line with the growth in our business and contribution of other operating expenses of the ibibo Group acquired on January 31, 2017. Other operating expenses for fiscal year 2017 also include merger and acquisition related expenses of $6.0 million, comprising legal and professional expenses, other expenses associated with our acquisition of the ibibo Group and certain non-routine transactions, whether or not consummated.

Depreciation, Amortization and Impairment. Our depreciation, amortization and impairment expenses increased to $32.7 million in the year ended March 31, 2018 from $29.7 million in the year ended March 31, 2017, primarily due to higher acquisition related intangibles amortization in the year ended March 31, 2018, partially offset by impairment of goodwill and brands related to HT Group of $14.6 million, as we decided to significantly reduce our HT Group operations in the year ended March 31, 2017.

Results from Operating Activities. As a result of the foregoing factors, our results from operating activities were a loss of $219.4 million in the year ended March 31, 2018 as compared to a loss of $135.4 million in the year ended March 31, 2017. Excluding the effects of our employee share-based compensation costs, impairment of intangibles assets, and amortization of acquisition related intangibles for both fiscal years 2018 and 2017, and merger and acquisitions related expenses for the year ended March 31, 2017, and severance cost related to a prior acquisition for the year ended March 31, 2018, we would have recorded an operating loss of $154.8 million in the year ended March 31, 2018 as compared with an operating loss of $83.7 million in the year ended March 31, 2017.

Net Finance Income. Our net finance income was $1.3 million in the year ended March 31, 2018 as compared to a net finance income of $27.0 million in the year ended March 31, 2017, primarily due to the net gain from change in fair value of derivative financial instrument of $42.4 million and interest expenses on loan and borrowing of $8.6 million in the year ended March 31, 2017, partially offset by higher interest income on term deposit placed with banks in the year ended March 31, 2018.

Loss for the year. As a result of the foregoing factors, our loss for the year ended March 31, 2018 was $220.2 million as compared to a loss of $110.3 million in the year ended March 31, 2017. Excluding the effects of employee share-based compensation costs, amortization of acquisition related intangibles, share of loss of equity-accounted investees, impairment of intangible assets, and income tax expense for both fiscal years 2018 and 2017, and merger and acquisitions related expenses, net change in fair value of derivative financial instrument, and net change in value of financial liability in business combination for fiscal year 2017, and severance cost related to a prior acquisition for fiscal year 2018, we would have recorded a net loss of $153.5 million in the year ended March 31, 2018 as against a net loss of $99.2 million in the year ended March 31, 2017.

Diluted Loss per share. Diluted loss per share was $2.18 for the year ended March 31, 2018 as compared to diluted loss per share of $2.09 in the year ended March 31, 2017. After adjusting for employee share-based compensation costs, amortization of acquisition related intangibles, share of loss of equity-accounted investees, impairment of intangible assets, and income tax expense for both fiscal years 2018 and 2017, and merger and acquisitions related expenses, net change in fair value of derivative financial instrument, and net change in value of financial liability in business combination for fiscal year 2017, and severance cost related to a prior acquisition for fiscal year 2018, diluted loss per share would have been $1.53 in the year ended March 31, 2018, compared to diluted loss per share of $1.88 in the year ended March 31, 2017.

Liquidity. As of March 31, 2018, the balance of cash and cash equivalents and term deposits on our balance sheet was $390.0 million.

 


New Revenue Recognition Accounting Standard

Effective April 1, 2018, the Company adopted the new revenue recognition standard, IFRS 15 – Revenue from Contracts with Customers (“IFRS 15”). The Company has reviewed the new standard and has concluded that application of the new standard will not have a material impact on the consolidated results or financial position except for reclassification effects within the consolidated statement of profit or loss and other comprehensive income (loss) with respect to certain customer inducement/acquisition costs for acquiring customers and promoting transactions across various booking platforms such as upfront cash incentives and select loyalty programs cost, which previously were being recorded as marketing and sales promotion expenses but will now be recorded as a reduction of revenue as a result of the new revenue recognition standard. The Company has adopted the new standard by using the cumulative catch-up transition method and accordingly our financial statements for the years ended March 31, 2018 and 2017 will not be retrospectively adjusted.

The Company will continue to publish its financial performance based on revenue less service cost, which is a non-IFRS measure, as we believe that revenue less service cost reflects more relevant information regarding the value addition of the travel services that we provide to our customers. Revenue less service cost represents IFRS revenue after deducting cost for the acquisition of relevant services and products for sale to customers and adding expenses in the nature of promotions which are adjusted against revenue. For more information on revenue less service cost, see “About Non-IFRS Financial Measures.”

Conference Call

MakeMyTrip will host a conference call to discuss the Company’s results for the quarter and year ended March 31, 2018 beginning at 7:30 a.m. EDT on May 30, 2018. To participate, please dial + 1-(844)-883-3862 from within the U.S. or +1-(574)-990-9829 from any other country. Thereafter, callers will be prompted to enter the participant passcode 7588679. 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 two weeks by dialing +1-(855)-859-2056 and using passcode 7588679. A one month replay of the live webcast will also be available at “Investor Relations” section of the Company’s website at http://investors.makemytrip.com, shortly following the conclusion of the call.

 

About Non-IFRS Financial Measures

The Company’s revenues are recognized on a “net” basis when we are acting as an agent, and on a “gross” basis when it is the primary obligor. Income from packages, including income on airline tickets sold to customers as a part of tours and packages is accounted for on a gross basis since the Company is the primary obligor in the arrangement and assumes the risks and responsibilities, including the responsibility for delivery of services. Revenue from the packages business which is accounted for on a “gross” basis represents the total amount paid by customers for these travel services and products, while the cost of procuring the relevant services and products for sale to customers in this business is classified as service cost. The Company evaluates its financial performance based on revenue less service costs, which is a non-IFRS measure calculated as revenue after deducting cost for the acquisition of relevant services and products for sale to customers and adding certain customer discounts in the nature of promotion expenses which have been adjusted against revenue, as it believes that revenue less service costs reflects more accurately the value addition of the travel services that it provides to customers in its packages business where it is the primary obligor and is similar to the revenue on a “net” basis for its air ticketing and hotels business where it acts as an agent. 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. The Company’s 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.

Constant currency results are financial measures that are not in accordance with IFRS, and assume constant currency exchange rates used for translation based on the rates in effect during the comparable period in the prior fiscal year.

The Company believes that adjusted operating profit (loss), adjusted net profit (loss), adjusted diluted earnings (loss) per share and change in constant currency are useful in measuring the results of the Company. The Company believes that its current calculations of adjusted operating profit (loss), adjusted net profit (loss), adjusted diluted earnings (loss) per share and change in constant currency represent a balanced approach to adjusting for the impact of certain discrete, unusual or non-cash items which are useful in measuring the results of the Company and provide investors and analysts a more accurate representation of its operating results. The Company believes that investors and analysts in its industry use these non-IFRS measures to compare the Company and its performance to that of its global peers.

 

 


The IFRS measures most directly comparable to adjusted operating profit (loss), adjusted net profit (loss) and adjusted diluted earnings (loss) per share are results from operating activities, profit (loss) for the period and diluted earnings (loss) per share, respectively. The Company believes that adjustments to these IFRS measures (including employee stock compensation costs, expenses such as amortization of acquisition related intangibles (including trade name, customer relationship and non-compete), merger and acquisition related expenses, share of loss of equity-accounted investees, net change in the fair value of derivative financial instrument, net change in value of financial liability related to business combination, severance cost related to a prior acquisition. impairment of intangible assets, and income tax expense (benefit)) provide investors and analysts a more accurate representation of the Company’s operating results.

A limitation of using adjusted operating profit (loss), adjusted net profit (loss) and adjusted diluted earnings (loss) per share instead of operating profit (loss), net profit (loss) and diluted earnings (loss) per share calculated in accordance with IFRS as issued by the IASB is that these non-GAAP financial measures exclude a recurring cost, namely share-based compensation. Management compensates for this limitation by providing specific information on the IFRS amounts excluded from adjusted operating profit (loss), adjusted net profit (loss) and adjusted diluted earnings (loss) per share.

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. These 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 20-F dated July 18, 2017, filed with the United States 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

MakeMyTrip Limited is India's leading online travel company. We own and operate well recognized online brands, including MakeMyTrip, goibibo and redbus. Through our primary websites, www.makemytrip.com, www.goibibo.com, www.redbus.in, and mobile platforms, travelers can research, plan and book a wide range of travel services and products in India as well as overseas. Our services and products include air ticketing, hotel and alternative accommodations bookings, holiday planning and packaging, rail ticketing, bus ticketing, car hire and ancillary travel requirements such as facilitating access to third-party travel insurance and visa processing.

We provide our customers with access to all major domestic full-service and low-cost airlines operating in India and all major airlines operating to and from India, over 53,000 domestic accommodation properties in India and more than 500,000 properties outside India, Indian Railways and all major Indian bus operators.

For more details, please contact:

Jonathan Huang

Vice President - Investor Relations

MakeMyTrip Limited

+1 (917) 769-2027

jonathan.huang@go-mmt.com

 


MAKEMYTRIP LIMITED

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

(UNAUDITED)

(Amounts in USD thousands)

 

 

As at March 31

 

 

 

2017

 

 

2018

 

Assets

 

 

 

 

 

 

 

 

Property, plant and equipment

 

 

15,334

 

 

 

13,690

 

Intangible assets and goodwill

 

 

1,170,727

 

 

 

1,147,517

 

Trade and other receivables, net

 

 

2,176

 

 

 

1,929

 

Investment in equity-accounted investees

 

 

18,212

 

 

 

16,316

 

Other investments

 

 

5,791

 

 

 

6,170

 

Term deposits

 

 

20,162

 

 

 

165

 

Non-current tax assets

 

 

19,306

 

 

 

24,476

 

Other non-current assets

 

 

29,658

 

 

 

14,607

 

Employee benefits

 

 

229

 

 

 

 

Total non-current assets

 

 

1,281,595

 

 

 

1,224,870

 

Inventories

 

 

251

 

 

 

596

 

Current tax assets

 

 

81

 

 

 

25

 

Trade and other receivables, net

 

 

35,108

 

 

 

56,386

 

Term deposits

 

 

75,511

 

 

 

202,170

 

Other current assets

 

 

50,232

 

 

 

92,542

 

Cash and cash equivalents

 

 

101,704

 

 

 

187,647

 

Assets held for sale

 

 

302

 

 

 

1,220

 

Total current assets

 

 

263,189

 

 

 

540,586

 

Total assets

 

 

1,544,784

 

 

 

1,765,456

 

Equity

 

 

 

 

 

 

 

 

Share capital

 

 

46

 

 

 

52

 

Share premium

 

 

1,607,373

 

 

 

1,960,691

 

Reserves

 

 

952

 

 

 

3,232

 

Accumulated deficit

 

 

(298,581

)

 

 

(515,850

)

Share based payment reserve

 

 

61,410

 

 

 

78,804

 

Foreign currency translation reserve

 

 

33,601

 

 

 

31,705

 

Total equity attributable to equity holders of the Company

 

 

1,404,801

 

 

 

1,558,634

 

Non-controlling interests

 

 

661

 

 

 

298

 

Total equity

 

 

1,405,462

 

 

 

1,558,932

 

Liabilities

 

 

 

 

 

 

 

 

Loans and borrowings

 

 

523

 

 

 

424

 

Employee benefits

 

 

2,946

 

 

 

3,721

 

Deferred revenue

 

 

265

 

 

 

91

 

Deferred tax liabilities, net

 

 

159

 

 

 

115

 

Other non-current liabilities

 

 

1,027

 

 

 

2,201

 

Total non-current liabilities

 

 

4,920

 

 

 

6,552

 

Loans and borrowings

 

 

226

 

 

 

228

 

Trade and other payables

 

 

121,563

 

 

 

181,430

 

Deferred revenue

 

 

3,045

 

 

 

1,262

 

Other current liabilities

 

 

9,568

 

 

 

17,052

 

Total current liabilities

 

 

134,402

 

 

 

199,972

 

Total liabilities

 

 

139,322

 

 

 

206,524

 

Total equity and liabilities

 

 

1,544,784

 

 

 

1,765,456

 

 

 

 


MAKEMYTRIP LIMITED

CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME (LOSS)

(UNAUDITED)

(Amounts in USD thousands, except per share data and share count)

 

 

For the three months ended

March 31

 

 

For the year ended

March 31

 

 

 

2017

 

 

2018

 

 

2017

 

 

2018

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Air ticketing

 

 

32,862

 

 

 

45,270

 

 

 

118,514

 

 

 

167,391

 

Hotels and packages

 

 

78,880

 

 

 

93,395

 

 

 

314,254

 

 

 

439,963

 

Other revenue

 

 

8,291

 

 

 

19,141

 

 

 

14,848

 

 

 

67,902

 

Total revenue

 

 

120,033

 

 

 

157,806

 

 

 

447,616

 

 

 

675,256

 

Other income

 

 

64

 

 

 

161

 

 

 

363

 

 

 

435

 

Service cost

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Procurement cost of hotel and packages services

 

 

34,945

 

 

 

34,989

 

 

 

173,919

 

 

 

169,347

 

Other cost of providing services

 

 

 

 

 

1,674

 

 

 

 

 

 

6,530

 

Personnel expenses

 

 

32,700

 

 

 

28,427

 

 

 

73,736

 

 

 

114,157

 

Marketing and sales promotion expenses

 

 

78,835

 

 

 

93,879

 

 

 

224,424

 

 

 

451,818

 

Other operating expenses

 

 

27,295

 

 

 

30,063

 

 

 

81,585

 

 

 

120,566

 

Depreciation, amortization and impairment

 

 

21,638

 

 

 

10,627

 

 

 

29,702

 

 

 

32,712

 

Results from operating activities

 

 

(75,316

)

 

 

(41,692

)

 

 

(135,387

)

 

 

(219,439

)

Finance income

 

 

3,179

 

 

 

806

 

 

 

45,268

 

 

 

5,189

 

Finance costs

 

 

470

 

 

 

3,020

 

 

 

18,289

 

 

 

3,901

 

Net finance income (costs)

 

 

2,709

 

 

 

(2,214

)

 

 

26,979

 

 

 

1,288

 

Share of loss of equity-accounted investees

 

 

(477

)

 

 

(125

)

 

 

(1,702

)

 

 

(1,998

)

Loss before tax

 

 

(73,084

)

 

 

(44,031

)

 

 

(110,110

)

 

 

(220,149

)

Income tax expense

 

 

(14

)

 

 

(86

)

 

 

(193

)

 

 

(91

)

Loss for the period

 

 

(73,098

)

 

 

(44,117

)

 

 

(110,303

)

 

 

(220,240

)

Other comprehensive income (loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Items that will never be reclassified subsequently to profit or loss:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Remeasurement of defined benefit (asset) liability

 

 

(93

)

 

 

160

 

 

 

(266

)

 

 

(422

)

Items that are or may be reclassified subsequently to profit or

   loss:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation differences on foreign operations

 

 

49,741

 

 

 

(20,090

)

 

 

48,618

 

 

 

(1,915

)

Net change in fair value of available-for-sale financial assets

 

 

(169

)

 

 

265

 

 

 

(809

)

 

 

2,280

 

 

 

 

49,572

 

 

 

(19,825

)

 

 

47,809

 

 

 

365

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income (loss) for the period, net of tax

 

 

49,479

 

 

 

(19,665

)

 

 

47,543

 

 

 

(57

)

Total comprehensive loss for the period

 

 

(23,619

)

 

 

(63,782

)

 

 

(62,760

)

 

 

(220,297

)

Loss attributable to:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Owners of the Company

 

 

(72,963

)

 

 

(43,075

)

 

 

(110,168

)

 

 

(218,412

)

Non-controlling interests

 

 

(135

)

 

 

(1,042

)

 

 

(135

)

 

 

(1,828

)

Loss for the period

 

 

(73,098

)

 

 

(44,117

)

 

 

(110,303

)

 

 

(220,240

)

Total comprehensive loss attributable to:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Owners of the Company

 

 

(23,488

)

 

 

(62,725

)

 

 

(62,629

)

 

 

(218,450

)

Non-controlling interests

 

 

(131

)

 

 

(1,057

)

 

 

(131

)

 

 

(1,847

)

Total comprehensive loss for the period

 

 

(23,619

)

 

 

(63,782

)

 

 

(62,760

)

 

 

(220,297

)

Loss per share (in USD)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

(0.93

)

 

 

(0.42

)

 

 

(2.09

)

 

 

(2.18

)

Diluted

 

 

(0.93

)

 

 

(0.42

)

 

 

(2.09

)

 

 

(2.18

)

Weighted average number of shares (including Class B

   Shares)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

78,062,498

 

 

 

101,665,740

 

 

 

52,607,986

 

 

 

100,394,080

 

Diluted

 

 

78,062,498

 

 

 

101,665,740

 

 

 

52,607,986

 

 

 

100,394,080

 

 

 

 


MAKEMYTRIP LIMITED

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

(UNAUDITED)

(Amounts in USD thousands)

 

 

Attributable to equity holders of the Company

 

 

 

 

 

 

 

 

 

 

 

Share

Capital

 

 

Share

Premium

 

 

Fair

Value

Reserves

 

 

Accumulated

Deficit

 

 

Share Based

Payment

Reserve

 

 

Foreign

Currency

Translation

Reserve

 

 

Total

 

 

Non-

Controlling

Interests

 

 

Total Equity

 

Balance as at April 1, 2017

 

 

46

 

 

 

1,607,373

 

 

 

952

 

 

 

(298,581

)

 

 

61,410

 

 

 

33,601

 

 

 

1,404,801

 

 

 

661

 

 

 

1,405,462

 

Total comprehensive income (loss) for the year

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss for the year

 

 

 

 

 

 

 

 

 

 

 

(218,412

)

 

 

 

 

 

 

 

 

(218,412

)

 

 

(1,828

)

 

 

(220,240

)

Other comprehensive income (loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation differences

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,896

)

 

 

(1,896

)

 

 

(19

)

 

 

(1,915

)

Net change in fair value of

   available-for-sale financial assets

 

 

 

 

 

 

 

 

2,280

 

 

 

 

 

 

 

 

 

 

 

 

2,280

 

 

 

 

 

 

2,280

 

Remeasurement of defined benefit

   (asset) liability

 

 

 

 

 

 

 

 

 

 

 

(422

)

 

 

 

 

 

 

 

 

(422

)

 

 

 

 

 

(422

)

Total other comprehensive income (loss)

 

 

 

 

 

 

 

 

2,280

 

 

 

(422

)

 

 

 

 

 

(1,896

)

 

 

(38

)

 

 

(19

)

 

 

(57

)

Total comprehensive income (loss) for the year

 

 

 

 

 

 

 

 

2,280

 

 

 

(218,834

)

 

 

 

 

 

(1,896

)

 

 

(218,450

)

 

 

(1,847

)

 

 

(220,297

)

Transactions with owners,

   recorded directly in equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contributions by owners

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Share based payment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

44,874

 

 

 

 

 

 

44,874

 

 

 

(14

)

 

 

44,860

 

Issue of ordinary shares on

   exercise of share based awards

 

 

1

 

 

 

27,462

 

 

 

 

 

 

 

 

 

(27,417

)

 

 

 

 

 

46

 

 

 

 

 

 

46

 

Transfer to accumulated deficit on

   expiry of share based awards

 

 

 

 

 

 

 

 

 

 

 

63

 

 

 

(63

)

 

 

 

 

 

 

 

 

 

 

 

 

Issue of ordinary shares in

   placement offering

 

 

5

 

 

 

325,856

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

325,861

 

 

 

 

 

 

325,861

 

Total contributions by owners

 

 

6

 

 

 

353,318

 

 

 

 

 

 

63

 

 

 

17,394

 

 

 

 

 

 

370,781

 

 

 

(14

)

 

 

370,767

 

Changes in ownership interests

   in subsidiaries that do not result

   in a loss of control

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contribution by non-controlling

   interests

 

 

 

 

 

 

 

 

 

 

 

1,502

 

 

 

 

 

 

 

 

 

1,502

 

 

 

1,498

 

 

 

3,000

 

Total changes in ownership interest in subsidiaries

 

 

 

 

 

 

 

 

 

 

 

1,502

 

 

 

 

 

 

 

 

 

1,502

 

 

 

1,498

 

 

 

3,000

 

Total transactions with owners

 

 

6

 

 

 

353,318

 

 

 

 

 

 

1,565

 

 

 

17,394

 

 

 

 

 

 

372,283

 

 

 

1,484

 

 

 

373,767

 

Balance as at March 31, 2018

 

 

52

 

 

 

1,960,691

 

 

 

3,232

 

 

 

(515,850

)

 

 

78,804

 

 

 

31,705

 

 

 

1,558,634

 

 

 

298

 

 

 

1,558,932

 

 

 


MAKEMYTRIP LIMITED

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

(UNAUDITED)

(Amounts in USD thousands)

 

 

For the year ended March 31

 

 

 

2017

 

 

2018

 

Loss for the year

 

 

(110,303

)

 

 

(220,240

)

Adjustments for non-cash items

 

 

31,459

 

 

 

78,799

 

Change in working capital

 

 

(29,613

)

 

 

15,963

 

Net cash generated from (used in) operating activities

 

 

(108,457

)

 

 

(125,478

)

Net cash generated from (used in) investing activities

 

 

163,011

 

 

 

(115,090

)

Net cash generated from (used in) financing activities

 

 

2,159

 

 

 

327,899

 

Increase (decrease) in cash and cash equivalents

 

 

56,713

 

 

 

87,331

 

Cash and cash equivalents at beginning of the year

 

 

46,273

 

 

 

101,704

 

Effect of exchange rate fluctuations on cash held

 

 

(1,282

)

 

 

(1,388

)

Cash and cash equivalents at end of the year

 

 

101,704

 

 

 

187,647

 


 


MAKEMYTRIP LIMITED

RECONCILIATION OF IFRS TO NON-IFRS FINANCIAL MEASURES

(Unaudited)

(Amounts in USD thousands, except per share data)

 

  

 

For the three months ended March 31

 

 

 

Air ticketing

 

 

Hotels and packages

 

 

Others

 

 

Total

 

 

 

2017

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

 

2018

 

Revenue as per IFRS

 

 

32,862

 

 

 

45,270

 

 

 

78,880

 

 

 

93,395

 

 

 

8,291

 

 

 

19,141

 

 

 

120,033

 

 

 

157,806

 

Add: Expense in nature of promotions

   adjusted against revenue

 

 

 

 

 

13,204

 

 

 

 

 

 

10,960

 

 

 

 

 

 

 

 

 

 

 

 

24,164

 

 

 

 

32,862

 

 

 

58,474

 

 

 

78,880

 

 

 

104,355

 

 

 

8,291

 

 

 

19,141

 

 

 

120,033

 

 

 

181,970

 

Less: Service cost as per IFRS

 

 

 

 

 

 

 

 

34,945

 

 

 

34,989

 

 

 

 

 

 

1,674

 

 

 

34,945

 

 

 

36,663

 

Revenue less service cost

 

 

32,862

 

 

 

58,474

 

 

 

43,935

 

 

 

69,366

 

 

 

8,291

 

 

 

17,467

 

 

 

85,088

 

 

 

145,307

 

 

  

 

For the year ended March 31

 

 

 

Air ticketing

 

 

Hotels and packages

 

 

Others

 

 

Total

 

 

 

2017

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

 

2018

 

Revenue as per IFRS

 

 

118,514

 

 

 

167,391

 

 

 

314,254

 

 

 

439,963

 

 

 

14,848

 

 

 

67,902

 

 

 

447,616

 

 

 

675,256

 

Add: Expense in nature of promotions

   adjusted against revenue

 

 

 

 

 

34,673

 

 

 

 

 

 

43,068

 

 

 

 

 

 

 

 

 

 

 

 

77,741

 

 

 

 

118,514

 

 

 

202,064

 

 

 

314,254

 

 

 

483,031

 

 

 

14,848

 

 

 

67,902

 

 

 

447,616

 

 

 

752,997

 

Less: Service cost as per IFRS

 

 

 

 

 

 

 

 

173,919

 

 

 

169,347

 

 

 

 

 

 

6,530

 

 

 

173,919

 

 

 

175,877

 

Revenue less service cost

 

 

118,514

 

 

 

202,064

 

 

 

140,335

 

 

 

313,684

 

 

 

14,848

 

 

 

61,372

 

 

 

273,697

 

 

 

577,120

 

 

Reconciliation of Adjusted Operating Profit (Loss)

 

For the three months ended March 31

 

 

For the year ended March 31

 

(Unaudited)

 

2017

 

 

2018

 

 

2017

 

 

2018

 

Results from operating activities as per IFRS

 

 

(75,316

)

 

 

(41,692

)

 

 

(135,387

)

 

 

(219,439

)

Add: Employee share-based compensation costs

 

 

17,665

 

 

 

11,586

 

 

 

26,795

 

 

 

44,860

 

Add: Impairment of intangible assets

 

 

15,168

 

 

 

2,874

 

 

 

15,168

 

 

 

2,874

 

Add: Merger and acquisitions related expenses

 

 

4,163

 

 

 

 

 

 

5,972

 

 

 

 

Add: Acquisition related intangibles amortization

 

 

2,541

 

 

 

3,686

 

 

 

3,741

 

 

 

14,719

 

Add: Severance cost related to a prior acquisition

 

 

 

 

 

 

 

 

 

 

 

2,180

 

Adjusted Operating Profit (Loss)

 

 

(35,779

)

 

 

(23,546

)

 

 

(83,711

)

 

 

(154,806

)

 

Reconciliation of Adjusted Net Loss

 

For the three months ended March 31

 

 

For the year ended March 31

 

(Unaudited)

 

2017

 

 

2018

 

 

2017

 

 

2018

 

Profit (Loss) for the period as per IFRS

 

 

(73,098

)

 

 

(44,117

)

 

 

(110,303

)

 

 

(220,240

)

Add: Employee share-based compensation costs

 

 

17,665

 

 

 

11,586

 

 

 

26,795

 

 

 

44,860

 

Add: Impairment of intangible assets

 

 

15,168

 

 

 

2,874

 

 

 

15,168

 

 

 

2,874

 

Add: Merger and acquisitions related expenses

 

 

4,163

 

 

 

 

 

 

5,972

 

 

 

 

Add: Acquisition related intangibles amortization

 

 

2,541

 

 

 

3,686

 

 

 

3,741

 

 

 

14,719

 

Add: Severance cost related to a prior acquisition

 

 

 

 

 

 

 

 

 

 

 

2,180

 

Add (Less): Net Change in fair value of derivative financial

   instrument

 

 

 

 

 

 

 

 

(42,427

)

 

 

 

Add: Share of loss of equity-accounted investees

 

 

477

 

 

 

125

 

 

 

1,702

 

 

 

1,998

 

Add: Net change in value of financial liability

   in business combination

 

 

 

 

 

 

 

 

2

 

 

 

 

Add : Income tax expense

 

 

14

 

 

 

86

 

 

 

193

 

 

 

91

 

Adjusted Net Loss

 

 

(33,070

)

 

 

(25,760

)

 

 

(99,157

)

 

 

(153,518

)

Adjusted Earnings (Loss) per share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted

 

 

(0.42

)

 

 

(0.25

)

 

 

(1.88

)

 

 

(1.53

)

 


 

Reconciliation of Adjusted Diluted Earnings (Loss) per Share

 

For the three months

ended March 31

 

 

For the year

ended March 31

 

(Unaudited)

 

2017

 

 

2018

 

 

2017

 

 

2018

 

 

 

(in US$)

 

Diluted Earnings (Loss) per share for the period as per IFRS

 

 

(0.93

)

 

 

(0.42

)

 

 

(2.09

)

 

 

(2.18

)

Add: Employee share-based compensation costs

 

 

0.23

 

 

 

0.10

 

 

 

0.51

 

 

 

0.44

 

Add: Impairment of intangible assets

 

 

0.19

 

 

 

0.03

 

 

 

0.29

 

 

 

0.03

 

Add: Merger and acquisitions related expenses

 

 

0.05

 

 

 

 

 

 

0.11

 

 

 

 

Add: Acquisition related intangibles amortization

 

 

0.03

 

 

 

0.04

 

 

 

0.07

 

 

 

0.14

 

Add: Severance cost related to a prior acquisition

 

 

 

 

 

 

 

 

 

 

 

0.02

 

Add (Less): Net Change in fair value of derivative financial

   instrument

 

 

 

 

 

 

 

 

(0.80

)

 

 

 

Add: Share of loss of equity-accounted investees

 

 

0.01

 

 

*

 

 

 

0.03

 

 

 

0.02

 

Add: Net change in value of financial liability in business

   combination

 

 

 

 

 

 

 

*

 

 

 

 

Add : Income tax expense

 

*

 

 

*

 

 

*

 

 

*

 

Adjusted Diluted Earnings (Loss) per share

 

 

(0.42

)

 

 

(0.25

)

 

 

(1.88

)

 

 

(1.53

)

 

*

Less than $0.01.

 

(Unaudited)

 

For the three months ended March 31, 2018

 

 

 

Revenue

 

 

Revenue less service costs

 

Reported Growth and Constant

   Currency Growth (YoY)

 

Air

Ticketing

 

 

Hotels and

packages

 

 

Other

 

 

Total

 

 

Air

Ticketing

 

 

Hotels and

packages

 

 

Other

 

 

Total

 

Reported Growth

 

 

37.8

%

 

 

18.4

%

 

 

130.8

%

 

 

31.5

%

 

 

77.9

%

 

 

57.9

%

 

 

110.7

%

 

 

70.8

%

Impact of Foreign Currency Translation

 

 

-4.2

%

 

 

-4.4

%

 

 

-1.9

%

 

 

-4.2

%

 

 

-4.1

%

 

 

-3.4

%

 

 

-2.0

%

 

 

-3.6

%

Constant Currency Growth

 

 

33.6

%

 

 

14.0

%

 

 

128.9

%

 

 

27.3

%

 

 

73.8

%

 

 

54.5

%

 

 

108.7

%

 

 

67.2

%

 

(Unaudited)

 

For the year ended March 31, 2018

 

 

 

Revenue

 

 

Revenue less service costs

 

Reported Growth and Constant

   Currency Growth (YoY)

 

Air

Ticketing

 

 

Hotels and

packages

 

 

Other

 

 

Total

 

 

Air

Ticketing

 

 

Hotels and

packages

 

 

Other

 

 

Total

 

Reported Growth

 

 

41.2

%

 

 

40.0

%

 

 

357.3

%

 

 

50.9

%

 

 

70.5

%

 

 

123.5

%

 

 

313.3

%

 

 

110.9

%

Impact of Foreign Currency Translation

 

 

-4.1

%

 

 

-4.1

%

 

 

-2.1

%

 

 

-4.1

%

 

 

-4.2

%

 

 

-4.5

%

 

 

-3.2

%

 

 

-4.3

%

Constant Currency Growth

 

 

37.1

%

 

 

35.9

%

 

 

355.2

%

 

 

46.8

%

 

 

66.3

%

 

 

119.0

%

 

 

310.1

%

 

 

106.6

%

 

 


MAKEMYTRIP LIMITED

SELECTED OPERATING AND FINANCIAL DATA (Unaudited)

 

 

For the three months

ended June 30

 

 

For the three months

ended September 30

 

 

For the three months

ended December 31

 

 

For the three months

ended March 31

 

 

For the year ended March 31

 

 

 

2016

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

 

2017

 

 

2017

 

 

2018

 

 

2017

 

 

2018

 

 

 

(in thousands, except percentages)

 

Number of transactions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Air ticketing

 

 

2,150

 

 

 

3,420

 

 

 

2,199

 

 

 

3,537

 

 

 

2,319

 

 

 

3,980

 

 

 

2,711

 

 

 

4,248

 

 

 

9,379

 

 

 

15,185

 

Hotels and packages

 

 

1,549

 

 

 

3,575

 

 

 

1,464

 

 

 

3,524

 

 

 

1,507

 

 

 

3,239

 

 

 

2,353

 

 

 

2,858

 

 

 

6,873

 

 

 

13,196

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Number of flight segments / room

   nights

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Air ticketing - Flight segments

 

 

4,727

 

 

 

7,835

 

 

 

4,692

 

 

 

7,723

 

 

 

5,132

 

 

 

8,463

 

 

 

6,009

 

 

 

9,318

 

 

 

20,560

 

 

 

33,339

 

Hotels and packages - Room

   nights

 

 

2,345

 

 

 

5,800

 

 

 

2,211

 

 

 

5,632

 

 

 

2,411

 

 

 

5,592

 

 

 

3,568

 

 

 

4,887

 

 

 

10,535

 

 

 

21,911

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue less service cost:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Air ticketing

 

$

23,880

 

 

$

45,613

 

 

$

23,556

 

 

$

47,053

 

 

$

38,216

 

 

$

50,924

 

 

$

32,862

 

 

$

58,474

 

 

$

118,514

 

 

$

202,064

 

Hotels and packages

 

 

33,213

 

 

 

81,263

 

 

 

27,715

 

 

 

79,194

 

 

 

35,472

 

 

 

83,861

 

 

 

43,935

 

 

 

69,366

 

 

 

140,335

 

 

 

313,684

 

Other revenue

 

 

1,775

 

 

 

14,338

 

 

 

1,925

 

 

 

12,945

 

 

 

2,857

 

 

 

16,622

 

 

 

8,291

 

 

 

17,467

 

 

 

14,848

 

 

 

61,372

 

 

 

$

58,868

 

 

$

141,214

 

 

$

53,196

 

 

$

139,192

 

 

$

76,545

 

 

$

151,407

 

 

$

85,088

 

 

$

145,307

 

 

$

273,697

 

 

$

577,120

 

Gross Bookings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Air ticketing

 

$

369,253

 

 

$

649,966

 

 

$

341,820

 

 

$

621,720

 

 

$

378,172

 

 

$

689,647

 

 

$

455,906

 

 

$

743,189

 

 

$

1,545,151

 

 

$

2,704,522

 

Hotels and packages

 

 

196,691

 

 

 

374,351

 

 

 

151,670

 

 

 

342,303

 

 

 

182,572

 

 

 

367,850

 

 

 

214,202

 

 

 

305,121

 

 

 

745,135

 

 

 

1,389,623

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net revenue margins

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Air ticketing(1)

 

 

6.5

%

 

 

7.0

%

 

 

6.9

%

 

 

7.6

%

 

 

10.1

%

 

 

7.4

%

 

 

7.2

%

 

 

7.9

%

 

 

7.7

%

 

 

7.5

%

Hotels and packages

 

 

16.9

%

 

 

21.7

%

 

 

18.3

%

 

 

23.1

%

 

 

19.4

%

 

 

22.8

%

 

 

20.5

%

 

 

22.7

%

 

 

18.8

%

 

 

22.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Operating Profit

   (Loss)

 

$

(24,257

)

 

$

(52,328

)

 

$

(24,998

)

 

$

(45,022

)

 

$

1,322

 

 

$

(33,911

)

 

$

(35,779

)

 

$

(23,546

)

 

$

(83,711

)

 

$

(154,806

)

 

(1)

Excluding incremental revenue as described in “Fiscal 2018 Full Financial Year Results” section above, the net revenue margin for air ticketing would be 7.8% for the three months ended December 31, 2016 and 7.1% for the year ended March 31, 2017.

 

 


 

 

For the three months ended March 31

 

 

 

2017

 

 

 

 

 

Proforma Basis

 

MakeMyTrip

 

 

ibibo

Group(2)

 

 

Proforma

Combined

Company(2)

 

 

2018

 

 

 

(in thousands)

 

Number of flight segments / room nights

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Air ticketing - Flight segments

 

 

6,009

 

 

 

660

 

 

 

6,669

 

 

 

9,318

 

Hotels and packages - Room nights

 

 

3,568

 

 

 

683

 

 

 

4,251

 

 

 

4,887

 

MMT India Standalone Hotels – Online – Room nights

 

 

2,025

 

 

 

1,943

 

 

 

3,968

 

 

 

4,712

 

 

 

 

For the year ended March 31

 

 

 

2017

 

 

 

 

 

Proforma Basis

 

MakeMyTrip

 

 

ibibo

Group(2)

 

 

Proforma

Combined

Company(2)

 

 

2018

 

 

 

(in thousands)

 

Number of flight segments / room nights

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Air ticketing - Flight segments

 

 

20,560

 

 

 

6,524

 

 

 

27,084

 

 

 

33,339

 

Hotels and packages - Room nights

 

 

10,535

 

 

 

7,505

 

 

 

18,040

 

 

 

21,911

 

MMT India Standalone Hotels – Online – Room nights

 

 

9,102

 

 

 

7,292

 

 

 

16,394

 

 

 

20,998

 

 

(2)

The values for ibibo Group are based on management estimates. Pro forma combined company values combine the historical values for ibibo Group and MakeMyTrip as if the acquisition of ibibo group by MakeMyTrip had occurred on April 1, 2016. The acquisition of ibibo group by MakeMyTrip closed on January 31, 2017.  The pro forma combined company values have not been adjusted to give effect to any pro forma events resulting from the acquisition, including, without limitation, costs savings, operating synergies or revenue enhancements. The pro forma combined information is not necessarily indicative of what the combined MakeMyTrip and ibibo Group values actually would have been had the acquisition been completed as of April 1, 2016.