MakeMyTrip has reported its fourth quarter and full year fiscal 2021 results, deailing revenue of $79 million and $163 million respectively.
The Gurugram, India-based online travel agency says air ticketing revenue improved in Q4 to $24 million from the $18 million reported in Q3.
Hotels and package revenue for the OTA improved to $38 million in Q4 compared to Q3’s figure of $24 million.
The company says operating activities made a profit of $0.3 million in Q4 versus a loss of $330 million year-on-year while adjusted operating profit came in at $11 million in Q4 compared to $10 million loss for the same quarter in 2020.
Adjusted operating profit was up almost $6 million compared with Q3 2021.
Deep Kalra, group executive chairman, MakeMyTrip, says: “MakeMyTrip continued to leverage the domestic travel recovery momentum for most part of the reported fiscal fourth quarter. The company also bolstered its liquidity with a convertible note issuance.
"While near term challenges will persist due to the rapid onset of a second COVID-19 wave in India since April 2021, we are well positioned to emerge as a stronger player in India’s travel market post pandemic with continued focus on cost discipline.”
While the company had seen gains from domestic tourism in the third and fourth quarter of fiscal year 2021, it expects the impact of the second wave of COVID-19 on its financial results to be greater in Q1 2022 because of lockdowns in the region.
Despite the uncertainty, MakeMyTrip says it’s “cautiously optimistic” of some level of domestic travel recovery in the second quarter of its fiscal year.
As with other OTAs the company significantly reduced its sales and marketing spend over the course of the year revealing a reduction of 84% to almost $23 million compared to the $167 million it spent in the previous year.
MakeMyTrip says its financial position as of the end of March was $450 million.