On Tuesday, July 23, online travel service provider MakeMyTrip Ltd announced its highest-ever gross bookings and revenue for the unaudited interim financial and operating results for its fiscal first quarter ending June 30, 2024.
Marketing and sales promotion expenses increased by 31.0% to $40.1 million in the quarter ended June 30, 2024 from $30.6 million in the quarter ended June 30, 2023, primarily due to an increase in variable costs and discretionary expenditures such as expenses on events and brand building initiatives in response to the robust travel demand in India in the quarter ended June 30, 2024 as compared to the quarter ended June 30, 2023. Additionally, they incurred customer inducement costs recorded as a reduction of revenue of $74.2 million in the quarter ended June 30, 2024 and $61.2 million in the quarter ended June 30, 2023.
According to International Financial Reporting Standards (IFRS), in Q1 FY25, MakeMyTrip experienced notable growth across various segments. Gross bookings increased by 21.6% year-over-year, reaching $2,380.4 million. The adjusted margin for Air Ticketing rose by 21.2% YoY to $89.1 million, while Hotels and Packages saw a 27.3% YoY increase to $107.3 million. Bus Ticketing's adjusted margin grew by 20.7% YoY to $32.4 million, and the adjusted margin for Others surged by 38.6% YoY to $14.9 million.
The company's adjusted operating profit improved to $39.1 million in Q1 FY25, up from $30.1 million in Q1 FY24, reflecting a year-over-year increase of $9.0 million. Additionally, the adjusted net profit rose to $44.5 million in Q1 FY25, compared to $33.6 million in Q1 FY24, marking a year-over-year improvement of $10.9 million.
Commenting on the launch of MakeMyTrip's Q1 financial results, Rajesh Magow, Group Chief Executive Officer of MakeMyTrip, said, We are pleased to see a robust start to this fiscal year. We believe that the long-term growth story of India's travel and tourism sector is fuelled by multiple macroeconomic drivers like increasing government investments in travel infrastructure, rising disposable incomes of the middle class, and increasing propensity to travel."
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