Nasdaq-listed MakeMyTrip, the country's largest online travel portal on Tuesday reported its earnings for FY23. The company's net losses declined to ₹92 crore in FY23 as against ₹375 crore in FY22. The company’s gross bookings during the year under review surged 122% year-on-year (YoY) to ₹54,306 crore as against ₹26,330 crore in FY22. For FY23, the company’s operating profit was the highest at ₹578 crore, witnessing a surge of 203.0% as against ₹190.8 crore in the same period last year.
In the January-March quarter, the company’s profit stood at ₹44.4 crore as against the loss of ₹33.7 crore in the same period last year.
“We witnessed robust recovery in travel demand with significant improvement in consumer sentiment during the fiscal year ended March 31, 2023. We capitalized on this trend to deliver strong results with over 120% YoY constant currency growth in Gross Bookings. Our profitability expansion has also been significant, as we delivered a YoY increase of over 200% in Adjusted Operating Profit for the reported fiscal year 2023. We are glad that our strategy of investing in the right areas coupled with our initiatives to optimize certain costs has helped us to preserve and strengthen our moat. We remain well positioned for the next fiscal year with a strong pipeline of product innovation to further enhance customer experience,” said Rajesh Magow, Group Chief Executive Officer, MakeMyTrip.
Founded in the year 2000 by Deep Kalra, MakeMyTrip provides travel bookings (air travels, trains and buses, etc), as well as bookings for hotels, homestays and holiday packages.
The development comes at a time when the travel and hospitality industry globally is recovering after having reported losses for the past two fiscals due to pandemic-induced travel restrictions.
According to CRISIL, rising business travel, along with increasing return-to-office and preference for face-to-face meetings besides increasing consumer preference for short breaks will push revenue past pre-pandemic levels in fiscal 2024.
Last month, rating agency ICRA said that it expects the Indian hotel industry to report a 13-15% revenue growth in FY24. "Sustenance of domestic leisure travel, higher bookings from meetings, incentives, conferences, and exhibitions (MICE), and business travel, along with an increase in foreign tourist arrivals (FTAs), would support revenues," ICRA said.