GURUGRAM, India – MakeMyTrip Limited (NASDAQ: MMYT), India's premier travel services company, reported a robust first quarter, surpassing analyst expectations with a significant increase in earnings and revenue.
The company's adjusted earnings per share (EPS) for the quarter were $0.39, a substantial $0.14 higher than the analyst estimate of $0.25. Revenue also exceeded forecasts, coming in at $254.52 million against the consensus estimate of $243.22 million. Following the announcement, MakeMyTrip's stock price rose by 3.7%.
The company's success in the first quarter is attributed to a 29.4% year-over-year (YoY) increase in revenue, with a notable 31.4% rise in constant currency terms. This growth was driven by a 25.4% increase in air ticketing revenue, a 27.5% rise in hotels and packages, a 17.2% improvement in bus ticketing, and a remarkable 95.2% surge in other revenue segments.
The adjusted operating profit also saw a significant jump, rising by 29.9% to $39.1 million, while the adjusted net profit climbed by 32.6% to $44.5 million.
Rajesh Magow, Group Chief Executive Officer of MakeMyTrip, commented on the results, stating, "We are pleased to see a robust start to this fiscal year." He attributed the strong performance to multiple macroeconomic drivers, including increasing government investments in travel infrastructure, rising disposable incomes, and a growing propensity to travel, which he believes will propel India's travel and tourism industry growth to exceed the country's GDP growth rate.
The company's financial health is further evidenced by a 21.6% YoY increase in gross bookings, reaching $2.38 billion. Each segment of the company's business contributed to this growth, with air ticketing adjusted margins up 21.2%, hotels and packages by 27.3%, bus ticketing by 20.7%, and other segments by a staggering 38.6%.
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