EX-99.1 2 mmyt-ex991_6.htm EX-99.1 mmyt-ex991_6.htm

Exhibit 99.1

MAKEMYTRIP LIMITED ANNOUNCES FISCAL 2020 FOURTH QUARTER AND FULL YEAR RESULTS

Financial Highlights for Fiscal 2020 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)

Gross Bookings(5) in 4Q20 reached $1.2 billion and $6.1 billion in FY20.

Revenue was $104.9 million for 4Q20 and $511.5 million for FY20.

Adjusted Revenue(2) reached $137.2 million in 4Q20 and $723.4 million in FY20.

Operating Loss increased in 4Q20 and FY20 mainly due to non-cash one-off items, although we continued in our trajectory of narrowing down our Adjusted Operating Loss(3) in QoQ and YoY.

4Q20 was partially marked by weak consumer travel demand due to a challenging macroeconomic environment caused by the COVID-19 pandemic.

Gurugram, India and New York, June 26, 2020 — MakeMyTrip Limited (NASDAQ: MMYT), India’s leading online travel company, today announced its unaudited financial and operating results for its fiscal fourth quarter and full fiscal year ended March 31, 2020.

“MakeMyTrip entered the fiscal fourth quarter with continued focus on driving strong business growth coupled with narrowing of operating losses. However, our plans were disrupted by the unprecedented lockdown due to the COVID-19 pandemic starting to impact travel demand significantly from the month of March 2020 onwards.” said Deep Kalra, Group Executive Chairman. “As the crisis unfolded and lockdown was imposed across the country, we quickly pivoted our short term plans to focus on conserving cash by reducing our spends. Our response to the COVID-19 pandemic have allowed us to remain resilient during these challenging times.”

 

(in thousands except EPS)

 

Three

months Ended

March 31,

2019

 

 

Three

months Ended

March 31,

2020

 

 

YoY

Change

 

 

YoY

Change

in constant

currency(1)

 

 

Year Ended

March 31,

2019

 

 

Year Ended

March 31,

2020

 

 

YoY

Change

 

 

YoY Change

in constant

currency(1)

 

Financial Summary as per IFRS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

120,177

 

 

$

104,946

 

 

 

-12.7

%

 

 

-9.8

%

 

$

486,011

 

 

$

511,529

 

 

 

5.3

%

 

 

6.6

%

Air Ticketing

 

$

41,693

 

 

$

35,845

 

 

 

-14.0

%

 

 

-11.1

%

 

$

166,714

 

 

$

174,361

 

 

 

4.6

%

 

 

6.1

%

Hotels and Packages

 

$

58,182

 

 

$

47,538

 

 

 

-18.3

%

 

 

-15.7

%

 

$

237,524

 

 

$

235,814

 

 

 

-0.7

%

 

 

0.3

%

Bus Ticketing

 

$

12,139

 

 

$

14,694

 

 

 

21.0

%

 

 

24.8

%

 

$

53,745

 

 

$

65,009

 

 

 

21.0

%

 

 

22.7

%

Others

 

$

8,163

 

 

$

6,869

 

 

 

-15.9

%

 

 

-12.7

%

 

$

28,028

 

 

$

36,345

 

 

 

29.7

%

 

 

31.4

%

Results from Operating Activities

 

$

(30,981

)

 

$

(330,258

)

 

 

 

 

 

 

 

 

 

$

(152,940

)

 

$

(429,410

)

 

 

 

 

 

 

 

 

Loss for the period

 

$

(40,393

)

 

$

(338,611

)

 

 

 

 

 

 

 

 

 

$

(167,883

)

 

$

(447,517

)

 

 

 

 

 

 

 

 

Diluted Loss per share

 

$

(0.39

)

 

$

(3.20

)

 

 

 

 

 

 

 

 

 

$

(1.61

)

 

$

(4.26

)

 

 

 

 

 

 

 

 

Financial Summary as per non-IFRS measures

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Revenue(2)

 

$

163,349

 

 

$

137,181

 

 

 

-16.0

%

 

 

-13.0

%

 

$

673,424

 

 

$

723,420

 

 

 

7.4

%

 

 

8.9

%

Air Ticketing

 

$

62,474

 

 

$

47,795

 

 

 

-23.5

%

 

 

-20.7

%

 

$

234,153

 

 

$

249,720

 

 

 

6.6

%

 

 

8.2

%

Hotels and Packages

 

$

76,856

 

 

$

65,377

 

 

 

-14.9

%

 

 

-11.8

%

 

$

351,615

 

 

$

360,116

 

 

 

2.4

%

 

 

3.9

%

Bus Ticketing

 

$

15,576

 

 

$

16,822

 

 

 

8.0

%

 

 

11.5

%

 

$

58,825

 

 

$

75,637

 

 

 

28.6

%

 

 

30.5

%

Others

 

$

8,443

 

 

$

7,187

 

 

 

-14.9

%

 

 

-11.7

%

 

$

28,831

 

 

$

37,947

 

 

 

31.6

%

 

 

33.3

%

Adjusted Operating Loss(3)

 

$

(18,427

)

 

$

(10,315

)

 

 

 

 

 

 

 

 

 

$

(98,789

)

 

$

(69,859

)

 

 

 

 

 

 

 

 

Adjusted Net Loss(4)

 

$

(18,273

)

 

$

(18,342

)

 

 

 

 

 

 

 

 

 

$

(103,659

)

 

$

(86,509

)

 

 

 

 

 

 

 

 

Adjusted Diluted Loss per share(4)

 

$

(0.18

)

 

$

(0.17

)

 

 

 

 

 

 

 

 

 

$

(1.00

)

 

$

(0.82

)

 

 

 

 

 

 

 

 

Operating Metrics

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Bookings(5)

 

$

1,372,809

 

 

$

1,206,677

 

 

 

-12.1

%

 

 

-9.0

%

 

$

5,446,144

 

 

$

6,093,735

 

 

 

11.9

%

 

 

13.5

%

Air Ticketing

 

$

839,561

 

 

$

692,112

 

 

 

-17.6

%

 

 

-14.6

%

 

$

3,214,545

 

 

$

3,581,267

 

 

 

11.4

%

 

 

13.0

%

Hotels and Packages

 

$

338,966

 

 

$

316,723

 

 

 

-6.6

%

 

 

-3.2

%

 

$

1,515,464

 

 

$

1,626,732

 

 

 

7.3

%

 

 

8.8

%

Bus Ticketing

 

$

194,282

 

 

$

197,842

 

 

 

1.8

%

 

 

5.1

%

 

$

716,135

 

 

$

885,736

 

 

 

23.7

%

 

 

25.5

%

Unit Metrics

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Air Ticketing – Flight segments(8)

 

 

10,205

 

 

 

8,637

 

 

 

-15.4

%

 

 

 

 

 

 

39,485

 

 

 

42,054

 

 

 

6.5

%

 

 

 

 

Hotels and Packages – Room nights(7)

 

 

6,141

 

 

 

6,107

 

 

 

-0.6

%

 

 

 

 

 

 

26,611

 

 

 

29,647

 

 

 

11.4

%

 

 

 

 

Standalone Hotels – Online(6) – Room nights(7)

 

 

5,993

 

 

 

5,983

 

 

 

-0.2

%

 

 

 

 

 

 

25,911

 

 

 

29,043

 

 

 

12.1

%

 

 

 

 

Bus Ticketing – Travelled tickets

 

 

17,111

 

 

 

18,582

 

 

 

8.6

%

 

 

 

 

 

 

61,464

 

 

 

78,582

 

 

 

27.9

%

 

 

 

 

 

 

 

 

 


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 adding back promotion expenses in the nature of customer discount, customer inducement/acquisition costs and loyalty program costs, which are reported as a reduction of revenue, and deducting the cost of acquisition of services primarily relating to sales to customers where the company acts as the principal. IFRS refers to International Financial Reporting Standards as issued by the International Accounting Standards Board.

(3)

Results from operating activities excluding impairment of goodwill, employee share-based compensation costs, gain on disposal of an equity-accounted investee, amortization of acquisition related intangibles, merger and acquisitions related expenses and provision for litigations.

(4)

Profit (Loss) for the period excluding impairment of goodwill, employee share-based compensation costs, amortization of acquisition related intangibles, merger and acquisitions related expenses, share of (profit) loss of equity-accounted investees, gain on disposal of an equity-accounted investee, impairment in respect of an equity-accounted investee, net change in value of financial liability in business combination, income tax expense (benefit) and provision for litigations.

(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)

“Standalone Hotels – Online” refer to Standalone Hotels booked on desktops, laptops, mobiles and other online platforms.

(7)

“Room nights,” also referred to as “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.

(8)

“Flight segments” 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 (8) above. Reconciliations of IFRS financial measures to non-IFRS financial measures, and operating results are included at the end of this release.

 

Other information

 

Impact of the COVID-19 Pandemic

 

During the quarter ended March 31 2020, the COVID-19 pandemic and thereafter various measures taken by government’s globally and particularly in India, including lockdowns, travel restrictions and quarantine requirements, have had a significant negative impact on the travel industry. The impact of COVID-19 has drastically reduced travel demand in terms of consumer sentiment and their ability to travel, which has caused airlines and hotels in India and around the world to operate at significantly reduced service levels. The COVID-19 pandemic has also resulted in significant weakness in the macroeconomic environment and heightened volatility in financial markets. Our financial and operating results for the fourth quarter of the fiscal 2020 year were impacted by these conditions in the domestic and global economy and the travel industry, with the impact worsening toward the end of the quarter as India was put under lockdown with effect from March 25, 2020. Accordingly, our fiscal 2020 fourth quarter financial results reflect decreases in revenue in our air ticketing and hotels and packages segments and a slowdown in bus ticketing revenue growth.

 

As the impact from the COVID-19 pandemic worsened towards the end of the reported quarter, the Indian Government imposed a lockdown across the country. As travel came to a standstill under the lockdown, we also observed significant declines in our stock price and market capitalization. In the fourth quarter of fiscal year 2020, we performed a quantitative assessment of goodwill and, following that assessment, we recorded an impairment charge of our goodwill amounting to $272.2 million primarily related to our Goibibo business, which we had acquired in fiscal year 2017. This non-cash charge does not affect our long-term operating plans for the Goibibo brand or the way our management views our operating performance during the reported quarter. We plan to continue driving synergies across our portfolio of multiple brands on the path of disciplined and financially sustainable growth while making appropriate investments to drive online penetration in various travel segments to support the long-term growth of our company, including the Goibibo brand.

 

We currently expect the impact of the COVID-19 pandemic on our financial results to be greater in the first quarter of the fiscal 2021 year because India’s nationwide lockdown began on March 25, 2020 and most travel services were largely shutdown during April and May 2020. As a result, our results of operations for the first quarter of fiscal year 2021 will reflect the impact of the pandemic on the full quarter as compared to the partial impact reflected in our financial results for the quarter ended March 31, 2020. The extent of the effects of the COVID-19 pandemic on our business, results of operations, cash flows and growth prospects are highly uncertain and will ultimately depend on future developments. These include, but are not limited to, the severity, extent and duration of the pandemic and its impact on the travel industries and consumer


spending more broadly. Even if economic and operating conditions for our business improve, we cannot predict the long-term effects of the pandemic on our business or the travel industries as a whole.

 

Beginning in April 2020, we have implemented various cost saving measures in response to current market conditions. These include compensation cuts of up to 100% of salary for our Group Executive Chairman and Group CEO, approximately 50% salary reductions for the rest of the senior management team and smaller reductions for the rest of our managerial positions. We have also significantly ramped down our outsourced teams at our call centers and our offline team managing corporate events. We are optimizing our IT infrastructure costs, our office costs and various other general and administrative expense. Apart from reductions in fixed costs, we are also reducing our variable costs including marketing and sales promotions and payment gateway costs. We have also cancelled all discretionary spends such as events, trainings and brand building. We expect most of these cost saving measures to remain in place at least through the beginning of the second quarter of the 2021 fiscal year. In light of our shift in focus away from offline sales channels as well as continuing effort to optimize fixed costs, we are also closing our company-owned offline retail stores in India.

 

We are cautiously optimistic of some recovery from the second quarter of the 2021 fiscal year as nationwide restrictions are gradually easing, including resumption of domestic flights from May 25, 2020 and various other travels services since June 8, 2020.

 

The following risk factor reflects our current and preliminary view on the impact of COVID-19 and related risks. This risk factor, as reviewed and updated, will be included in our forthcoming Annual Report on Form 20-F for the year ended March 31, 2020.

 

The COVID-19 pandemic has had, and is expected to continue to have, a material adverse impact on the travel industry and our business, financial condition, results of operations and cash flows.

 

An outbreak of a novel strain of coronavirus, COVID-19, was identified in Wuhan, China in December 2019 and was subsequently recognized as a pandemic by the World Health Organization on March 11, 2020. The COVID-19 pandemic has severely restricted the level of economic activity around the world, and the travel and tourism sector is one of the sectors that have been impacted most severely. In response to the COVID-19 pandemic, the government in India and governments in many countries and regions have implemented containment measures, such as imposing restrictions on travel and business operations and advising or requiring individuals to drastically limit the time spent outside of their homes. The ability to travel has been curtailed by city, state and national border closures, mandated travel restrictions and limited operations of airlines and hotels. Many of our customers and suppliers, including hotels and airlines, have drastically curtailed their service offerings or ceased operations entirely. These measures are being continuously re-evaluated by the relevant authorities, and whether these measures are eased, continued or increased is outside of our control or ability to predict.

 

The measures implemented to contain the COVID-19 pandemic have had, and are currently expected to continue to have, a significant negative effect on our business, financial condition, results of operations and cash flows. In the fourth quarter of 2020, we have experienced, and expect to continue to experience, a significant decline in travel demand resulting in significant customer cancellations and refund requests and reduced new orders relating to international and domestic travel and lodging. We observed a significant decrease in supply of domestic transportation tickets and international air tickets in response to comprehensive containment measures in India and internationally regions. In the fourth quarter of fiscal year 2020, as a result of the significant negative impact related to COVID-19 pandemic on the travel industry and our stock price and market capitalization, we concluded that sufficient indicators existed to require us to perform a quantitative assessment of goodwill and, following that assessment, we recorded an impairment charge of our goodwill amounting to $272.2 million primarily related to our Goibibo business, which we had acquired in fiscal year 2017.

 

Beginning in April 2020, we have implemented various cost saving measures in response to current market conditions. These include compensation cuts of up to 100% of salary for our Group Executive Chairman and Group CEO, approximately 50% salary reductions for the rest of the senior management team and smaller reductions for the rest of our managerial positions. We have also significantly ramped down our outsourced teams at our call centers and our offline team managing corporate events. We are optimizing our IT infrastructure costs, our office costs and various other general and administrative expense. Apart from reductions in fixed costs, we are also reducing our variable costs including marketing and sales promotions and payment gateway costs. We have also cancelled all discretionary spends such as events, trainings and brand building. We expect most of these cost saving measures to remain in place at least through the beginning of the second quarter of the 2021 fiscal year. In light of our shift in focus away from offline sales channels as well as continuing effort to optimize fixed costs, we are also closing our company-owned offline retail stores in India.

 

Our business and the travel industry in general is particularly sensitive to reductions in personal and business-related discretionary spending levels. The COVID-19 pandemic could continue to impede global economic activity, even as restrictions are lifted, leading to decreased per capita income and disposable income, increased and prolonged unemployment


or a decline in consumer confidence, all of which could significantly reduce discretionary spending by individuals and businesses on travel. In turn, that could have a negative impact on demand for our services and could lead us, our suppliers or our competitors to reduce prices or offer incentives to attract travelers, despite already operating in a highly competitive industry. Such circumstances or developments could have a material adverse impact on our business, financial condition, results of operations and cash flows. We cannot reasonably estimate the impact of COVID-19 on our future revenues, results of operations, cash flows, liquidity or financial condition, but such impacts have been and will likely continue to be significant for the foreseeable future.

 

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. There were no repurchases pursuant to the share repurchase plan during the fiscal 2020 fourth quarter. As of March 31, 2020, we had remaining authority to repurchase up to approximately $136.0 million of our outstanding ordinary shares.

Fiscal 2020 Fourth Quarter Financial Results

Revenue. We generated revenue of $104.9 million in the quarter ended March 31, 2020, a decrease of 12.7% (9.8% in constant currency) over revenue of $120.2 million in the quarter ended March 31, 2019. Our Total Adjusted Revenue decreased by 16.0% (13.0% in constant currency) to $137.2 million in the quarter ended March 31, 2020 from $163.3 million in the quarter ended March 31, 2019, as a result of a decrease of 23.5% (20.7% in constant currency) in our Adjusted Revenue – air ticketing, a decrease of 14.9% (11.8% in constant currency) in our Adjusted Revenue – hotels and packages, and a decrease of 14.9% (11.7% in constant currency) in our Adjusted Revenue – others, partially offset by an increase of 8.0% (11.5% in constant currency) in our Adjusted Revenue – bus ticketing, each as further described below. Adjusted Revenue also includes promotion expenses of $58.2 million in the quarter ended March 31, 2020 and $81.4 million in the quarter ended March 31, 2019, recorded as a reduction of revenue. The decrease in Revenue and Total Adjusted Revenue was primarily due to the impact of the COVID-19 pandemic (as further discussed herein), including lower travel demand beginning in March 2020 and travel restrictions and nationwide lockdown orders implemented in India in March 2020.

For further information on this non-IFRS financial measure, see — “About Non-IFRS Financial Measures” elsewhere in this release.

 

 

For the three months ended March 31

 

 

 

 

Air ticketing

 

 

Hotels and packages

 

 

Bus ticketing

 

 

Others

 

 

Total

 

 

 

 

2019

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

 

2020

 

 

 

 

(Amounts in USD thousands)

 

 

Revenue as per IFRS

 

 

41,693

 

 

 

35,845

 

 

 

58,182

 

 

 

47,538

 

 

 

12,139

 

 

 

14,694

 

 

 

8,163

 

 

 

6,869

 

 

 

120,177

 

 

 

104,946

 

 

Add: Promotion expenses recorded as a reduction of revenue

 

 

21,055

 

 

 

12,055

 

 

 

55,590

 

 

 

41,913

 

 

 

4,453

 

 

 

3,815

 

 

 

319

 

 

 

415

 

 

 

81,417

 

 

 

58,198

 

 

 

 

 

62,748

 

 

 

47,900

 

 

 

113,772

 

 

 

89,451

 

 

 

16,592

 

 

 

18,509

 

 

 

8,482

 

 

 

7,284

 

 

 

201,594

 

 

 

163,144

 

 

Less: Service cost as per IFRS

 

 

274

 

 

 

105

 

 

 

36,916

 

 

 

24,074

 

 

 

1,016

 

 

 

1,687

 

 

 

39

 

(1)

 

97

 

(1)

 

38,245

 

(1)

 

25,963

 

(1)

Adjusted Revenue

 

 

62,474

 

 

 

47,795

 

 

 

76,856

 

 

 

65,377

 

 

 

15,576

 

 

 

16,822

 

 

 

8,443

 

 

 

7,187

 

 

 

163,349

 

 

 

137,181

 

 

__________________

 

(1)

Loyalty program costs amounting to $1.4 million have been excluded from service cost (three months ended March 31, 2019: $0.5 million) relating to “Others”, and have been included in marketing and sales promotion expenses.

Air Ticketing. Revenue from our air ticketing business decreased by 14.0% (11.1% in constant currency) to $35.8 million in the quarter ended March 31, 2020 from $41.7 million in the quarter ended March 31, 2019. Adjusted Revenue from our air ticketing business decreased by 23.5% (20.7% in constant currency) to $47.8 million in the quarter ended March 31, 2020, from $62.5 million in the quarter ended March 31, 2019. Adjusted Revenue – air ticketing includes promotion expenses of $12.1 million in the quarter ended March 31, 2020 and $21.1 million in the quarter ended March 31, 2019, recorded as a reduction of revenue. These promotion expenses added back to Adjusted Revenue, with the consequent increase in marketing and sales promotion expenses, is intended to reflect the way we view our ongoing business. Under IFRS, these promotion expenses are required to be recorded as a reduction of revenue. This decrease in Adjusted Revenue - air ticketing was due to a decrease in gross bookings of 17.6% (14.6% in constant currency) primarily driven by a 15.4% decrease in the number of air ticketing flight segments year over year, primarily due to the impact of the COVID-19 pandemic, including lower travel


demand beginning in March 2020 and travel restrictions and nationwide lockdown orders implemented in India in March 2020. Further, our Adjusted Revenue margin (defined as Adjusted Revenue as a percentage of gross bookings) was 6.9% in the quarter ended March 31, 2020 compared to 7.4% in the quarter ended March 31, 2019, and 7.2% in the quarter ended December 31, 2019. The marginal decline in Adjusted Revenue Margin was primarily attributable to less supplier incentives earned, caused by the decline in air travel demand due to COVID-19.

Hotels and Packages. Revenue from our hotels and packages business decreased by 18.3% (15.7% in constant currency) to $47.5 million in the quarter ended March 31, 2020, from $58.2 million in the quarter ended March 31, 2019. Our Adjusted Revenue – hotels and packages decreased by 14.9% (11.8% in constant currency) to $65.4 million in the quarter ended March 31, 2020 from $76.9 million in the quarter ended March 31, 2019. Adjusted Revenue - hotels and packages includes promotion expenses of $41.9 million in the quarter ended March 31, 2020 and $55.6 million in the quarter ended March 31, 2019, recorded as a reduction of revenue. These promotion expenses added back to Adjusted Revenue, with the consequent increase in marketing and sales promotion expenses, is intended to reflect the way we view our ongoing business. Under IFRS, these promotion expenses are required to be recorded as a reduction of revenue. Gross bookings decreased by 6.6% (3.2% in constant currency) primarily driven by a 0.6% decrease in the number of hotel-room nights year over year primarily due to the impact of the COVID-19 pandemic, including lower travel demand beginning in March 2020 and travel restrictions and nationwide lockdown orders implemented in India in March 2020. Our Adjusted Revenue margin in the quarter ended March 31, 2020 was 20.6% as compared to 22.5% in the quarter ended December 31, 2019 and 22.7% in the quarter ended March 31, 2019. The decrease in Adjusted Revenue margin was primarily due to a decrease in margins from our suppliers in line with a shift in our pricing strategy in the hotels and packages business.

Bus Ticketing. Revenue from our bus ticketing business increased by 21.0% (24.8% in constant currency) to $14.7 million in the quarter ended March 31, 2020, from $12.1 million in the quarter ended March 31, 2019. Adjusted Revenue from our bus ticketing business increased by 8.0% (11.5% in constant currency) to $16.8 million in the quarter ended March 31, 2020 from $15.6 million in the quarter ended March 31, 2019. Adjusted Revenue bus ticketing includes promotion expenses of $3.8 million in the quarter ended March 31, 2020 and $4.5 million in the quarter ended March 31, 2019, recorded as a reduction of revenue. These promotion expenses added back to Adjusted Revenue, with the consequent increase in marketing and sales promotion expenses, is intended to reflect the way we view our ongoing business. Under IFRS, these promotion expenses are required to be recorded as a reduction of revenue. Gross bookings increased by 1.8% (5.1% in constant currency) driven by a 8.6% increase in the number of bus tickets travelled year over year, which reflects the continued offline to online shift within this travel segment, partially offset by the impact of COVID-19 pandemic, including lower travel demand beginning in March 2020 and travel restrictions and nationwide lockdown orders implemented in India in March 2020. Our Adjusted Revenue margin was 8.5% in the quarter ended March 31, 2020, which remained at the similar level of 8.6% in the quarter ended December 31, 2019, but increased from 8.0% in the quarter ended March 31 2019.

Other Revenue. Other revenue decreased by 15.9% (12.7% in constant currency) to $6.9 million in the quarter ended March 31, 2020, from $8.2 million in the quarter ended March 31, 2019. Our Adjusted Revenue – others has decreased to $7.2 million in the quarter ended March 31, 2020 from $8.4 million in the quarter ended March 31, 2019. This was primarily due to lower insurance income, partially offset by higher advertisement income and other ancillary revenues in the quarter ended March 31, 2020. Our Other Revenue and Adjusted Revenue – others for the quarter ended March 31, 2020 reflects the impact of the COVID-19 pandemic, including lower travel demand beginning in March 2020 and travel restrictions and nationwide lockdown orders implemented in India in March 2020. Adjusted Revenue – others includes promotion expenses of $0.4 million in the quarter ended March 31, 2020 and $0.3 million in the quarter ended March 31, 2019, recorded as a reduction of revenue. These promotion expenses added back to Adjusted Revenue, with the consequent increase in marketing and sales promotion expenses, is intended to reflect the way we view our ongoing business. Under IFRS, these promotion expenses are required to be recorded as a reduction of revenue.

Personnel Expenses. Personnel expenses increased by 22.1% to $34.5 million in the quarter ended March 31, 2020 from $28.2 million in the quarter ended March 31, 2019. The increase reflects annual wage increases implemented in earlier quarters of fiscal year 2020. Excluding employee share-based compensation costs for the fourth quarter of both fiscal years 2020 and 2019, personnel expenses as a percentage of Adjusted Revenue increased by 3.6%, reflecting the decline in Adjusted Revenue and annual wage increases described above.


Marketing and sales promotion expenses. Marketing and sales promotion expenses decreased by 35.2% to $27.0 million in the quarter ended March 31, 2020 from $41.7 million in the quarter ended March 31, 2019. Including promotion expenses of $59.6 million in the quarter ended March 31, 2020 and $81.9 million in the quarter ended March 31, 2019 recorded as a reduction of revenue as explained above, marketing and sales promotion expenses decreased by 29.9% year over year to $86.6 million. The decrease in marketing and sales promotion expense reflects our gradual reduction in marketing and sales promotion activities as well as the impact of our significant curtailment of these variable costs due to the impact of the COVID-19 pandemic. Marketing and sales promotion expenses after including promotion expenses explained above, primarily include significant customer inducement/acquisition costs, customer discount and loyalty program costs incurred to accelerate growth in our standalone hotel booking business, and brand advertisement expenses. These expenses, details of which are provided below, totaled $86.6 million (63.1% of Total Adjusted Revenue) in the quarter ended March 31, 2020 as compared to $123.6 million (75.6% of Total Adjusted Revenue) in the quarter ended March 31, 2019. The details of expenses in the nature of marketing and sales promotion is as follows:

 

 

For the three months ended

March 31

 

 

 

2019

 

 

2020

 

 

 

(Amounts in USD thousands)

 

Marketing and sales promotion expenses as per IFRS

 

 

41,700

 

 

 

27,029

 

Promotion expenses recorded as a reduction of revenue

 

 

81,417

 

 

 

58,198

 

Certain loyalty program costs related to Others revenue

 

 

436

 

 

 

1,427

 

 

Other Operating Expenses. Other operating expenses increased by 84.2% to $65.8 million in the quarter ended March 31, 2020 from $35.7 million in the quarter ended March 31, 2019, primarily due to a one-time provision for litigations of $30.8 million in the quarter ended March 2020 for a dispute related to a prior acquisition, partially offset by decrease in payment gateway charges on account of less bookings due to lower travel demand due to COVID-19 in the month of March 2020.

Depreciation and amortization. Our depreciation and amortization expenses were $8.5 million in the quarter ended March 31, 2020 post adoption of IFRS 16 on April 1, 2019 wherein depreciation has been recorded as right-of-use assets and interest on lease liabilities instead of rent expense on leasehold properties in the quarter ended March 31, 2020. Depreciation and amortization expense in the quarter ended March 31, 2019 was $6.9 million.

Impairment of goodwill. Our goodwill impairment charge was $272.2 million in the quarter ended March 31, 2020. In the fourth quarter of fiscal year 2020, as a result of the significant negative impact related to COVID-19 pandemic on the travel industry and our stock price and market capitalization, we concluded that sufficient indicators existed to require us to perform a quantitative assessment of goodwill and, following that assessment, we recorded an impairment charge of our goodwill amounting to $272.2 million, primarily related to our Goibibo business, which we had acquired in fiscal year 2017. Goodwill impairment charge in the quarter ended March 31, 2019 was Nil.

Results from Operating Activities. As a result of the foregoing factors, our results from operating activities were a loss of $330.3 million in the quarter ended March 31, 2020 as compared to a loss of $31.0 million in the quarter ended March 31, 2019. Excluding the effects of our employee share-based compensation costs and amortization of acquisition related intangibles for the fourth quarter of both fiscal years 2020 and 2019 and impairment of goodwill and provision for litigations in the fourth quarter of fiscal year 2020, we would have recorded an Adjusted Operating Loss of $10.3 million in the quarter ended March 31, 2020 as compared with Adjusted Operating Loss of $18.4 million in the quarter ended March 31, 2019. For a description of the components and calculation of “Adjusted Operating Profit (Loss)” and a reconciliation of this non-IFRS measure to the most directly comparable IFRS measure “Results from operating activities”, see — “About Non-IFRS Financial Measures” elsewhere in this release.

Net Finance Cost (Income). Our net finance cost was $8.4 million in the quarter ended March 31, 2020 as compared to net finance income of $0.2 million in the quarter ended March 31, 2019, primarily due to the net foreign exchange loss in quarter ended March 31, 2020 mainly as a result of the depreciation of the Indian Rupee against the U.S. dollar as compared to December 31, 2019.


Loss for the period. As a result of the foregoing factors, our loss for the quarter ended March 31, 2020 was $338.6 million as compared to a loss of $40.4 million in the quarter ended March 31, 2019. Excluding the effects of employee share-based compensation costs, amortization of acquisition related intangibles, share of loss (profit) of equity-accounted investees and income tax expense (benefit) for the fourth quarter of both fiscal years 2020 and 2019, and impairment of goodwill, net change in value of financial liability in business combination and provision for litigations in the fourth quarter of fiscal year 2020 and impairment in respect of an equity-accounted investee in the fourth quarter of fiscal year 2019, we would have recorded an Adjusted Net Loss of $18.3 million in the quarter ended March 31, 2020, as compared to Adjusted Net Loss of $18.3 million in the quarter ended March 31, 2019. For a description of the components and calculation of “Adjusted Net Profit (Loss)” and a reconciliation of this non-IFRS measure to the most directly comparable IFRS measure “Loss for the period”, see About Non-IFRS Financial Measures” elsewhere in this release.

Diluted Loss per share. Diluted loss per share was $3.20 for the quarter ended March 31, 2020 as compared to diluted loss per share of $0.39 in the quarter ended March 31, 2019. After adjusting for the effects of employee share-based compensation costs, amortization of acquisition related intangibles, share of loss (profit) of equity-accounted investees and income tax expense (benefit) for the fourth quarter of both fiscal years 2020 and 2019, and impairment of goodwill, net change in value of financial liability in business combination and provision for litigations in the fourth quarter of fiscal year 2020 and impairment in respect of an equity-accounted investee in the fourth quarter of fiscal year 2019, Adjusted Diluted Loss per share would have been $0.17 in the quarter ended March 31, 2020 as compared to Adjusted Diluted Loss per share of $0.18 in the quarter ended March 31, 2019. For a description of the components and calculation of “Adjusted Diluted Earnings (Loss) per Share” and a reconciliation of this non-IFRS measure to the most directly comparable IFRS measure “diluted earnings (loss) per share”, see — “About Non-IFRS Financial Measures” elsewhere in this release.

Fiscal 2020 Full Year Financial Results

Revenue. We generated revenue of $511.5 million in the year ended March 31, 2020, an increase of 5.3% (6.6% in constant currency) over revenue of $486.0 million in the year ended March 31, 2019. Our Total Adjusted Revenue increased by 7.4% (8.9% in constant currency) to $723.4 million in the year ended March 31, 2020 from $673.4 million in the year ended March 31, 2019, as a result of an increase of 6.6% (8.2% in constant currency) in our Adjusted Revenue – air ticketing, an increase of 2.4% (3.9% in constant currency) in our Adjusted Revenue – hotels and packages, an increase of 28.6% (30.5% in constant currency) in our Adjusted Revenue – bus ticketing and an increase of 31.6% (33.3% in constant currency) in our Adjusted Revenue – others, each as further described below. Adjusted Revenue also includes promotion expenses of $361.2 million in the year ended March 31, 2020 and $358.4 million in the year ended March 31, 2019, recorded as a reduction of revenue. Our Revenue and Total Adjusted Revenue for the year ended March 31, 2020 reflects increases in revenue in each of our business segments during the first three quarters of fiscal year 2020, which were partially offset by the impact of the COVID-19 pandemic in the quarter ended March 31, 2020, including lower travel demand beginning in March 2020 and travel restrictions and nationwide lockdown orders implemented in India in March 2020.

 

For further information on this non-IFRS financial measure, see — “About Non-IFRS Financial Measures” elsewhere in this release.

 

 

  

 

For the year ended March 31

 

 

 

 

Air ticketing

 

 

Hotels and packages

 

 

Bus ticketing

 

 

Others

 

 

Total

 

 

 

 

2019

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

 

2020

 

 

Revenue as per IFRS

 

 

166,714

 

 

 

174,361

 

 

 

237,524

 

 

 

235,814

 

 

 

53,745

 

 

 

65,009

 

 

 

28,028

 

 

 

36,345

 

 

 

486,011

 

 

 

511,529

 

 

Add: Promotion expenses recorded as a reduction of revenue

 

 

68,632

 

 

 

75,779

 

 

 

274,915

 

 

 

265,706

 

 

 

13,950

 

 

 

17,688

 

 

 

861

 

 

 

1,985

 

 

 

358,358

 

 

 

361,158

 

 

 

 

 

235,346

 

 

 

250,140

 

 

 

512,439

 

 

 

501,520

 

 

 

67,695

 

 

 

82,697

 

 

 

28,889

 

 

 

38,330

 

 

 

844,369

 

 

 

872,687

 

 

Less: Service cost as per IFRS

 

 

1,193

 

 

 

420

 

 

 

160,824

 

 

 

141,404

 

 

 

8,870

 

 

 

7,060

 

 

 

58

 

(1)

 

383

 

(1)

 

170,945

 

(1)

 

149,267

 

(1)

Adjusted Revenue

 

 

234,153

 

 

 

249,720

 

 

 

351,615

 

 

 

360,116

 

 

 

58,825

 

 

 

75,637

 

 

 

28,831

 

 

 

37,947

 

 

 

673,424

 

 

 

723,420

 

 

___________________

(1)

Loyalty program costs amounting to $5.1 million have been excluded from service cost (year ended March 31, 2019: $2.5 million) relating to “Others”, and have been included in marketing and sales promotion expenses.


Air Ticketing. Revenue from our air ticketing business increased by 4.6% (6.1% in constant currency) to $174.4 million in the year ended March 31, 2020 from $166.7 million in the year ended March 31, 2019. Adjusted Revenue from our air ticketing business increased by 6.6% (8.2% in constant currency) to $249.7 million in the year ended March 31, 2020, from $234.2 million in the year ended March 31, 2019. Adjusted Revenue – air ticketing includes promotion expenses of $75.8 million in the year ended March 31, 2020 and $68.6 million in the year ended March 31, 2019, recorded as a reduction of revenue. These promotion expenses added back to Adjusted Revenue, with the consequent increase in marketing and sales promotion expenses, is intended to reflect the way we view our ongoing business. Under IFRS, these promotion expenses are required to be recorded as a reduction of revenue. The increase in Adjusted Revenue - air ticketing was due to an increase in gross bookings of 11.4% (13.0% in constant currency) primarily driven by a 6.5% increase in the number of air ticketing flight segments year over year, mainly driven by growth in our outbound air ticketing business, partially offset by a decrease in gross booking in the quarter ended March 31, 2020 due to the impact of the COVID-19 pandemic, including lower travel demand beginning in March 2020 and travel restrictions and nationwide lockdown orders implemented in India in March 2020. Our Adjusted Revenue margin (defined as Adjusted Revenue as a percentage of gross bookings) slightly declined to 7.0% in the year ended March 31, 2020 as compared to 7.3% in the year ended March 31, 2019 primarily due to the decline in air travel demand due to COVID-19 in the quarter ended March 31, 2020.

Hotels and Packages. Revenue from our hotels and packages business decreased by 0.7% (increased by 0.3% in constant currency) to $235.8 million in the year ended March 31, 2020, from $237.5 million in the year ended March 31, 2019. Our Adjusted Revenue – hotels and packages increased by 2.4% (3.9% in constant currency) to $360.1 million in the year ended March 31, 2020 from $351.6 million in the year ended March 31, 2019. Adjusted Revenue - hotels and packages includes promotion expenses of $265.7 million in the year ended March 31, 2020 and $274.9 million in the year ended March 31, 2019, recorded as a reduction of revenue. These promotion expenses added back to Adjusted Revenue, with the consequent increase in marketing and sales promotion expenses, is intended to reflect the way we view our ongoing business. Under IFRS, these promotion expenses are required to be recorded as a reduction of revenue. The marginal decrease in revenue from our hotels and packages business is primarily due to the impact of the COVID-19 pandemic in the quarter ended March 31, 2020, including lower travel demand beginning in March 2020 and travel restrictions and nationwide lockdown orders implemented in India in March 2020. Gross bookings increased by 7.3% (8.8% in constant currency) driven by 11.4% increase in the number of hotel- room nights year over year, partially offset by a decrease in gross bookings in the quarter ended March 31, 2020 due to the impact of the COVID-19 pandemic. Our Adjusted Revenue margin was 22.1% in the year ended March 31, 2020 and 23.2% in the year ended March 31, 2019. The decrease in Adjusted Revenue margin was primarily due to a decrease in margins from our suppliers in line with a shift in our pricing strategy in the hotels and packages business.

Bus Ticketing. Revenue from our bus ticketing business increased by 21.0% (22.7% in constant currency) to $65.0 million in the year ended March 31, 2020, from $53.7 million in the year ended March 31, 2019. Adjusted Revenue from our bus ticketing business increased by 28.6% (30.5% in constant currency) to $75.6 million in the year ended March 31, 2020 from $58.8 million in the year ended March 31, 2019. Adjusted Revenue bus ticketing includes promotion expenses of $17.7 million in the year ended March 31, 2020 and $14.0 million in the year ended March 31, 2019, recorded as a reduction of revenue. These promotion expenses added back to Adjusted Revenue, with the consequent increase in marketing and sales promotion expenses, is intended to reflect the way we view our ongoing business. Under IFRS, these promotion expenses are required to be recorded as a reduction of revenue. Gross bookings increased by 23.7% (25.5 % in constant currency) driven by a 27.9% increase in the number of bus tickets travelled year over year, which reflects the continued offline to online shift within this travel segment, partially offset by the impact of COVID-19 pandemic, including lower travel demand beginning in March 2020 and travel restrictions and nationwide lockdown orders implemented in India in March 2020. Our Adjusted Revenue margin of 8.5% in the year ended March 31, 2020 remained at 8.2% in the year ended March 31, 2019.

Other Revenue. Other revenue increased by 29.7% (31.4% in constant currency) to $36.3 million in the year ended March 31, 2020, from $28.0 million in the year ended March 31, 2019. Our Adjusted Revenue – others has increased to $37.9 million in the year ended March 31, 2020 from $28.8 million in the year ended March 31, 2019. This was primarily due to higher revenues from advertisement income and other ancillary revenues in the year ended March 31, 2020, partially offset by the impact of the COVID-19 pandemic, including lower travel demand beginning in March 2020 and travel restrictions and nationwide lockdown orders implemented in India in March 2020. Adjusted Revenue – others includes promotion expenses of $2.0 million in the year ended March 31, 2020 and $0.9 million in the year ended March 31, 2019, recorded as a reduction of revenue. These promotion expenses added back to Adjusted Revenue, with the consequent increase in marketing and sales promotion expenses, is intended to reflect the way we view our ongoing business. Under IFRS, these promotion expenses are required to be recorded as a reduction of revenue.


Personnel Expenses. Personnel expenses increased by 14.3% to $129.8 million in the year ended March 31, 2020 from $113.6 million in the year ended March 31, 2019. This increase was primarily due to an annual increase in wages and one-time accelerated personnel cost of $2.5 million in second quarter of fiscal year 2020 due to the amendment of the share purchase agreement related to a prior acquisition. Excluding employee share-based compensation costs for both fiscal years 2020 and 2019, and one-time accelerated personnel cost as explained above in fiscal year 2020, personnel expenses as a percentage of Adjusted Revenue increased by 0.9%, reflecting that our annual increase in wages generally kept pace with the growth of our business after taking into account the impact of the COVID-19 pandemic on our Adjusted Revenue for the quarter ended March 31, 2020.

Marketing and sales promotion expenses. Marketing and sales promotion expenses decreased by 13.3% to $166.6 million in the year ended March 31, 2020 from $192.1 million in the year ended March 31, 2019. Including promotion expenses of $366.2 million in the year ended March 31, 2020 and $360.8 million in the year ended March 31, 2019 recorded as a reduction of revenue as explained above, marketing and sales promotion expenses decreased by 3.6% year over year to $532.8 million. The decrease in marketing and sales promotion expense reflects our gradual reduction in marketing and sales promotion activities as well as the impact of our significant curtailment of these variable costs due to the impact of the COVID-19 pandemic. Marketing and sales promotion expenses after including promotion expenses explained above, primarily include significant customer inducement/acquisition costs, customer discount and loyalty program costs incurred to accelerate growth in our standalone hotel booking business, and brand advertisement expenses. These expenses, details of which are provided below, totaled $532.8 million (73.7% of Total Adjusted Revenue) in the year ended March 31, 2020 as compared to $552.9 million (82.1% of Total Adjusted Revenue) in the year ended March 31, 2019. The details of expenses in the nature of marketing and sales promotion is as follows:

 

 

 

For the year ended

March 31

 

 

 

2019

 

 

2020

 

 

 

(Amounts in USD thousands)

 

Marketing and sales promotion expenses as per IFRS

 

 

192,080

 

 

 

166,603

 

Promotion expenses recorded as a reduction of revenue

 

 

358,358

 

 

 

361,158

 

Certain loyalty program costs related to Others revenue

 

 

2,467

 

 

 

5,053

 

 

Other Operating Expenses. Other operating expenses increased by 39.1% to $185.4 million in the year ended March 31, 2020 from $133.3 million in the year ended March 31, 2019, primarily due to a one-time provision for litigations of $30.8 million for a dispute related to a prior acquisition and due to an increase in payment gateway charges, website hosting charges and outsourcing fees in line with the growth in our business in the first three quarters of the fiscal 2020 year, partially offset by a decrease in payment gateway charges on account of less bookings due to lower travel demand due to COVID-19 in the month of March 2020. Other operating expenses for the year ended March 31, 2020 also include merger and acquisition related expenses of $0.9 million, comprising legal and professional expenses and certain non-routine transactions, whether or not consummated.

Depreciation and amortization. Our depreciation and amortization expenses were $33.7 million in the year ended March 31, 2020 post adoption of IFRS 16 on April 1, 2019 wherein depreciation has been recorded on right-of-use assets and interest on lease liabilities instead of rent expense on leasehold properties in the year ended March 31, 2020. Depreciation and amortization expense in the year ended March 31, 2019 was $26.8 million.

Impairment of goodwill. Our goodwill impairment charge was $272.2 million in the year ended March 31, 2020. In the fourth quarter of fiscal year 2020, as a result of the significant negative impact related to COVID-19 pandemic on the travel industry and our stock price and market capitalization, we concluded that sufficient indicators existed to require us to perform a quantitative assessment of goodwill and, following that assessment, we recorded an impairment charge of our goodwill amounting to $272.2 million, primarily related to our Goibibo business, which we had acquired in fiscal year 2017. Goodwill impairment charge in the year ended March 31, 2019 was Nil.

Results from Operating Activities. As a result of the foregoing factors, our results from operating activities were a loss of $429.4 million in the year ended March 31, 2020 as compared to a loss of $152.9 million in the year ended March 31, 2019. Excluding the effects of our employee share-based compensation costs and amortization of acquisition related intangibles for both fiscal years 2020 and 2019 and impairment of goodwill, gain on disposal of an equity-accounted investee, merger and acquisitions related expenses and provision for litigations for year ended March 31, 2020, we would have recorded an Adjusted Operating Loss of $69.9 million in the year ended March 31, 2020 as compared with Adjusted Operating Loss of $98.8 million in the year ended March 31, 2019. For a description of the components and calculation of “Adjusted Operating Profit (Loss)” and a reconciliation of this non-IFRS measure to the most directly comparable IFRS measure “Results from operating activities”, see — “About Non-IFRS Financial Measures” elsewhere in this release.


Net Finance Cost. Our net finance cost was $18.1 million in the year ended March 31, 2020 as compared to net finance cost of $4.9 million in the year ended March 31, 2019, primarily due to the net foreign exchange loss in year ended March 31, 2020 mainly as a result of depreciation of the Indian Rupee against the U.S. dollar as compared to March 31, 2019.

Loss for the year. As a result of the foregoing factors, our loss for the year ended March 31, 2020 was $447.5 million as compared to a loss of $167.9 million in the year ended March 31, 2019. Excluding the effects of employee share-based compensation costs, amortization of acquisition related intangibles, share of loss (profit) of equity-accounted investees and income tax expense (benefit) for both fiscal years 2020 and 2019, and impairment of goodwill, gain on disposal of an equity-accounted investee, merger and acquisitions related expenses, net change in value of financial liability in business combination and provision for litigations in the year ended March 31, 2020 and impairment in respect of an equity-accounted investee in the year ended March 31, 2019, we would have recorded an Adjusted Net Loss of $86.5 million in the year ended March 31, 2020, as compared to Adjusted Net Loss of $103.7 million in the year ended March 31, 2019. For a description of the components and calculation of “Adjusted Net Profit (Loss)” and a reconciliation of this non-IFRS measure to the most directly comparable IFRS measure “Loss for the year”, see — “About Non-IFRS Financial Measures” elsewhere in this release.

Diluted Loss per share. Diluted loss per share was $4.26 for the year ended March 31, 2020 as compared to diluted loss per share of $1.61 in the year ended March 31, 2019. After adjusting for employee share-based compensation costs, amortization of acquisition related intangibles, share of loss (profit) of equity-accounted investees and income tax expense (benefit) for both fiscal years 2020 and 2019, and impairment of goodwill, gain on disposal of an equity-accounted investee, merger and acquisitions related expenses, net change in value of financial liability in business combination and provision for litigations in the year ended March 31, 2020 and impairment in respect of an equity-accounted investee in the year ended March 31, 2019, Adjusted Diluted Loss per share would have been $0.82 in the year ended March 31, 2020 as compared to Adjusted Diluted Loss per share of $1.00 in the year ended March 31, 2019. For a description of the components and calculation of “Adjusted Diluted Earnings (Loss) per Share” and a reconciliation of this non-IFRS measure to the most directly comparable IFRS measure “diluted earnings (loss) per share”, see — “About Non-IFRS Financial Measures” elsewhere in this release.

Liquidity. As at March 31, 2020, the balance of cash and cash equivalents and term deposits on our balance sheet was $167.9 million. Further, the Indian operating businesses have additionally tied-up for working capital and guarantee facilities from an Indian bank of approximately $25 million to bolster availability of funds in the short term to meet any contingencies during the COVID-19 pandemic.

Conference Call

MakeMyTrip will host a conference call to discuss the Company’s results for the quarter and year ended March 31, 2020 beginning at 8:30 AM EDT on June 26, 2020. 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 8519866. 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 one week by dialing +1-(855)-859-2056 and using passcode 8519866. 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 principal. 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 as the Company controls the services before such services are transferred to the traveler. 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 Adjusted Revenue, which is a non-IFRS financial measure calculated as revenue after adding back promotion expenses in the nature of customer discount, customer inducement/acquisition cost and loyalty program costs, which are reported as a reduction of revenue, and deducting the cost of acquisition of services primarily relating to sales to customers where the Company acts as the principal, as it believes that Adjusted Revenue reflects the value addition of the travel services that it provides to customers in its packages business where it is the principal and is similar to the revenue on a “net” basis for its air ticketing, hotels and bus ticketing 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 Adjusted Revenue 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 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 share-based compensation costs, impairment of goodwill, expenses such as amortization of acquisition related intangibles (including trade name, customer relationship and non-compete), share of loss (profit) of equity-accounted investees, gain on disposal of an equity-accounted investee, net change in value of financial liability in business combination, merger and acquisitions related expenses, income tax expense (benefit) and provision for litigations) provide investors and analysts a 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), 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 23, 2019, filed with the United States Securities and Exchange Commission. COVID-19, and the volatile regional and global economic conditions stemming from it, and additional or unforeseen effects from the COVID-19 pandemic, could also give rise to or aggravate these risk factors, which in turn could materially adversely affect our business, financial condition, liquidity, results of operations (including revenues and profitability) and/or stock price. Further, COVID-19 may also affect our operating and financial results in a manner that is not presently known to us or that we currently do not consider to present significant risks to our operations. 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 77,000 domestic accommodation properties in India and more than 700,000 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,

2019

 

 

As at

March 31,

2020

 

Assets

 

 

 

 

 

 

 

 

Property, plant and equipment

 

 

13,499

 

 

 

35,997

 

Intangible assets and goodwill

 

 

1,068,876

 

 

 

721,990

 

Trade and other receivables, net

 

 

2,267

 

 

 

2,658

 

Investment in equity-accounted investees

 

 

5,244

 

 

 

5,363

 

Other investments

 

 

5,662

 

 

 

3,683

 

Term deposits

 

 

139

 

 

 

207

 

Non-current tax assets

 

 

31,681

 

 

 

34,160

 

Other non-current assets

 

 

2,273

 

 

 

131

 

Total non-current assets

 

 

1,129,641

 

 

 

804,189

 

Inventories

 

 

606

 

 

 

36

 

Contract assets

 

 

313

 

 

 

 

Current tax assets

 

 

1,415

 

 

 

4,447

 

Trade and other receivables, net

 

 

53,195

 

 

 

53,407

 

Term deposits

 

 

133,994

 

 

 

37,823

 

Other current assets

 

 

73,132

 

 

 

53,428

 

Cash and cash equivalents

 

 

177,990

 

 

 

129,881

 

Total current assets

 

 

440,645

 

 

 

279,022

 

Total assets

 

 

1,570,286

 

 

 

1,083,211

 

Equity

 

 

 

 

 

 

 

 

Share capital

 

 

52

 

 

 

52

 

Share premium

 

 

1,977,318

 

 

 

1,985,555

 

Reserves

 

 

634

 

 

 

(1,345

)

Accumulated deficit

 

 

(682,054

)

 

 

(1,147,597

)

Share based payment reserve

 

 

102,427

 

 

 

135,738

 

Foreign currency translation reserve

 

 

(41,202

)

 

 

(114,166

)

Total equity attributable to equity holders of the Company

 

 

1,357,175

 

 

 

858,237

 

Non-controlling interests

 

 

193

 

 

 

4,055

 

Total equity

 

 

1,357,368

 

 

 

862,292

 

Liabilities

 

 

 

 

 

 

 

 

Loans and borrowings

 

 

474

 

 

 

21,613

 

Employee benefits

 

 

4,789

 

 

 

6,335

 

Contract liabilities

 

 

84

 

 

 

1,548

 

Deferred tax liabilities, net

 

 

601

 

 

 

1,777

 

Other non-current liabilities

 

 

2,400

 

 

 

9,775

 

Total non-current liabilities

 

 

8,348

 

 

 

41,048

 

Loans and borrowings

 

 

233

 

 

 

3,971

 

Trade and other payables

 

 

110,970

 

 

 

70,747

 

Contract liabilities

 

 

70,251

 

 

 

33,364

 

Other current liabilities

 

 

23,116

 

 

 

40,989

 

Provisions

 

 

 

 

 

30,800

 

Total current liabilities

 

 

204,570

 

 

 

179,871

 

Total liabilities

 

 

212,918

 

 

 

220,919

 

Total equity and liabilities

 

 

1,570,286

 

 

 

1,083,211

 

 

 

 

 

 

 

 

 

 

 


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

 

 

 

2019

 

 

2020

 

 

2019

 

 

2020

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Air ticketing

 

 

41,693

 

 

 

35,845

 

 

 

166,714

 

 

 

174,361

 

Hotels and packages

 

 

58,182

 

 

 

47,538

 

 

 

237,524

 

 

 

235,814

 

Bus ticketing

 

 

12,139

 

 

 

14,694

 

 

 

53,745

 

 

 

65,009

 

Other revenue

 

 

8,163

 

 

 

6,869

 

 

 

28,028

 

 

 

36,345

 

Total revenue

 

 

120,177

 

 

 

104,946

 

 

 

486,011

 

 

 

511,529

 

Other  income

 

 

68

 

 

 

95

 

 

 

220

 

 

 

1,063

 

Service cost

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Procurement cost of hotels and packages services

 

 

36,916

 

 

 

24,074

 

 

 

160,824

 

 

 

141,404

 

Other cost of providing services

 

 

1,765

 

 

 

3,316

 

 

 

12,588

 

 

 

12,916

 

Personnel expenses

 

 

28,216

 

 

 

34,456

 

 

 

113,567

 

 

 

129,836

 

Marketing and sales promotion expenses

 

 

41,700

 

 

 

27,029

 

 

 

192,080

 

 

 

166,603

 

Other operating expenses

 

 

35,726

 

 

 

65,793

 

 

 

133,295

 

 

 

185,401

 

Depreciation and amortization

 

 

6,903

 

 

 

8,471

 

 

 

26,817

 

 

 

33,682

 

Impairment of goodwill

 

 

 

 

 

272,160

 

 

 

 

 

 

272,160

 

Result from operating activities

 

 

(30,981

)

 

 

(330,258

)

 

 

(152,940

)

 

 

(429,410

)

Finance income

 

 

1,552

 

 

 

550

 

 

 

6,459

 

 

 

3,362

 

Finance costs

 

 

1,398

 

 

 

8,954

 

 

 

11,329

 

 

 

21,433

 

Net finance income (costs)

 

 

154

 

 

 

(8,404

)

 

 

(4,870

)

 

 

(18,071

)

Impairment in respect of an equity accounted investee

 

 

(9,926

)

 

 

 

 

 

(9,926

)

 

 

 

Share of loss of equity-accounted investees

 

 

(186

)

 

 

(64

)

 

 

(887

)

 

 

(65

)

Loss before tax

 

 

(40,939

)

 

 

(338,726