Q4 2020 MakeMyTrip Ltd Earnings Call
Ladies and gentlemen, thank you for standing by and welcome to make my trip.
24th quarter and full year earnings.
At this time, all participants kinda listen only mode. After the speaker presentation, there will be question.
Last question. During this session. Please press star one of your telephone.
Advised to these conferences.
If you require any further systems. Please press star zero I would now like to hand, the conference over to your Speaker Jonathan.
President of Investor Relations. Please go ahead.
Thank you Sandy welcome everyone to make quite true limited.
<unk> fiscal 2024th quarter and full year earnings call I would like to remind everyone that certain statements made on todays call are considered forward looking statements within the meeting of the safe Harbor provision of the U.S. Private Securities Litigation Reform Act up 1995.
These statements are not guarantees of future performance are subject to inherent uncertainties and actual results may differ materially.
Any forward looking information or later on this call speaks only as of the states. The company undertakes no obligation to update the information to reflect changed circumstances. Additional information concerning these statements are contained at the risk factors and forward looking statements section of the company. The I know reports on form 20-F.
Now with the FCC on July 20, Threerd 2018 copies of these filings are available from the FCC or from the company's Investor Relations Department.
I'm joined today by deep Kalra make my trips founder.
Chairmen, Rajasthan, Margo co founder and CEO, and mostly Cobre our group CFO.
I'd now like to turn the call, where it's a deep to be get our discussion for today.
Thank you John.
Welcome everyone to a fourth quarter and full year earnings call for fiscal year Twentytwenty.
Hope everyone listening is staying safe and happy.
I'd like to begin by sharing my thoughts on the reality, we outpaced wouldn't today and how we as markedly does on managing through this crisis.
The ongoing global corporate 19 pandemic has severely disrupted the we live and caring about I everyday lives.
Since the February 25th report published by the WH rule, which called for travel restrictions on prohibition as a measure to come back over 19 regulatory traveled clubs have impacted most of us across the world.
India stay at home or does that severely disrupted our domestic travel industry since March 25th when the nationwide locked down was implemented this Florida had put a complete stopped or travel on build a recent gradually lifting off restrictions on domestic flights buses and hotels, which was on me.
20, plus.
The destructions to business have been unprecedented in our company's history.
To see that these are trying times for our team would be an understatement. However, I firmly believe that these are also the times when a company's values and strains are destined to the full list.
To a much stronger than the other end of the crisis, we focused on four key priorities first and foremost two in short our employees health and safety.
Second to relentlessly support our customers amidst the kiosk due to the sudden locked down and flight cancellations.
Hard to reduce our fixed expenses to minimize gosh born during the short though.
And lastly, eat the government in handling of the pandemic, while supporting that wasn't supposed section of <unk> Society.
My colleagues will shed greater details on our cost optimization actions I will elaborate more on the other three priorities.
During the earlier part of the fiscal fourth quarter.
As news of Corbett 19 in March we began to be quick bodies diet style, the tools needed to walk from home.
So in short our stuff safety, we quickly implemented all the prescribes safety and hygiene protocols in all of our physical offices, which included fee, which exit the gates, social distancing and more frequent access to our on site doctors and testing work from home at scale.
This helped us embraced locked on measures swiftly and we continue to upgrade from home with high levels of employee engagement utilizing video conferencing to check in on developing boost mode, all Edmonton productivity.
Naturally during this crisis customer concerns were elevated as inbound inquiry volume spikes money for due to high cancellations.
We do mundane customers high expectations of our brands, we rapidly expanded the facilities available for them to reach us for his.
This included launching a new online web fall, where customers can submit origin travelers requests this allowed us to better manage and prioritized traveled changes expeditiously.
At the same time, we continue to improve our popular online self service platform by working closely with supplier partners.
The ongoing investments has made it easier for customers to bypass I'd call centers, while making frequent changes to that trips.
We also reward, though dedicated and PQ support features clearly inform customers each airlines policies during the pandemic.
Currently we leveraged social media and popular messaging systems to direct you provide customers with ongoing updates and changes to policies regarding traveled refunds and amendments.
Prior to the locked down we proactively worked with outsourcing partners to ensure continuity of service to handle the anticipated spike in customer call volumes.
As a result of a comprehensive and proactive actions we were successful in handling and resolving the large volume of customer craze of course, none of these efforts would have been possible without our own team and people.
I want to specifically take a moment to present time them for going above and beyond the call of duty. During this crisis to sell the needs of our customers, which we believe will help our brands bounced back in a much stronger position.
During the locked down period, we heavily leaned into the make my trip foundation to care for our community.
We launched initiatives to support the testing and treatment costs of our frontline workers and the travel industry, including would dealt stuff bus drivers and tool guides. We also crowd source farms, along with employee contributions to help the most vulnerable vigilant on no is within the industry may have lost their jobs as the decided not to slow down.
By working with our community partners, we were able to distribute those greatly affected with up to 10000 puts me as each day in the neighborhood surrounding our office.
Lastly, our technology team has also contributed immensely to help the government developed and launched a gold wood treating I'm going to auto gets into.
This app is aimed to help attract and mitigate the spread of what we've seen across the country. It helps by gathering micro and macro trends, including location level extend of existing and potential spread allowing administrative measures to be taken accordingly. It has also become an essential tool in the countries gradually travel.
I'm talking process I'm pleased to share that the SAP has been downloaded over 100 and could be million times, and im, especially proud that our small team of talented developers and engineers have been able to contribute to the weather benefit society in a very meaningful and direct way.
These are very challenging times for everyone and yet I remain optimistic as our Brazilian team has successfully better.
[noise] disruptions caused by the 911 terrorist attacks Sars outbreak in 2003, and the 2000 need global financial crisis. The company is always a much stronger competitively.
Gone.
I'm around would be no different.
What gives me for their optimism is that we entered this crisis in a far stronger competitive and financial positioning than ideas and believe that gap will only be widen as we begin to succeed.
[noise], leading up to this quarter, we had made great progress in reducing operating losses as a investment from the Standalone Hotel segment have come to build cycle.
However, we realize that this crisis once again shifts the paradigm as we need to ensure the business advice through potentially is you don't traveled and locked down conditions, which put extensible months and possibly quarters, therefore acted swiftly and sharply reducing our fixed costs to give us a runway of about two years, even in such upon for.
As seen loss.
[laughter].
Osteo when Ctrip Dot Com group increased at stake in the company did also called out that support for the company in terms of participating in future fundraising efforts.
We believe that we have enough liquidity to types with this crisis, it's always comforting to have their continuous support as Aki Shadow, we're doing such exceptional circumstances.
At this point the good news is that the journey of recovery has begun as the government has relaxed domestic flight restrictions on may 25th followed by relaxation of other travel related restrictions since joining.
For example services like hotels trends into city bus services, I know gradually being restored in non containment zones. We're encouraged to see the level of interest and demand so far from users, albeit at low levels when compared to frequencies.
Looking forward I believe that domestic travel in India, the lead in the industries and our own business recovery.
The plus we will travelers holding the relaxation of this locked down has largely been folks who was stuck in a destination for work all the way it's fun to lock down was implemented in late March.
We also believe essential business family in medical travel will be one of the fullest drivers of the pent up traveler demand.
This is likely to be followed by demand for self drive on road trip holidays to destinations that can offer social distancing and travel deals because looking to get off for a long locked on video in the country.
However, with international flights do grounded today, we believe our fund traveled is likely to take longer to open up given the multitude of travel restrictions that out in place.
Currently the government of India has indicated that opening of international travel will be considered in July.
Along with creation of travel bubbles with certain countries that would allow access to Indians and vice versa.
While we have a long time ahead.
I have no doubt in the long run the travel business will rebound as humans, we are naturally wired to travel and seek in person connections and new travel experiences.
Whether it's to visit family friends and loved ones to establish new business relationships or to seek adventure and experiences it will inevitably happen.
Probably the days of Cadthree leisure discretionary traveled with gradually looked on wants to buy it is adequately controlled or an effective treatment of vaccine gets developed.
Also worth reminding listeners that and gets travel market still offers multiple compelling segments, which are still largely booked offline.
Believed this spend that make will only bush.
The fact alone Digitization and drive online booking adoption even faster.
As a result, we continue to invest during these challenging times to make sure our brands technology and service platforms, I'm ready to scale and support the rebound in demand.
The level of service an experience that will be industry, leading and benchmark. The world class standards. We believe we will continue to gain share within the industry in the long term and strengthen our market leadership position.
Now I'd like to turn the call over to Rochester share how we're managing through this crisis as a company and up adds to remind you even stronger competitive.
Thanks, the project and greetings everyone.
I hope you at all Hell be unveiled during these uncertain times I.
I would like to start by shutting the quick overview of how the fiscal fourth quarter progressed and hope we quickly adopted.
Business as the Vitesse outbreak on for Doug.
Entering the quarter.
You heard plan to continue on our part of driving growth and share gains.
With a focus on minimizing quarterly cash burn.
For the month of January customer demand and bookings was.
Hold on plan across all lines of businesses.
Talking the last week on February.
As news flow of covert 19 outbreaks in southeast Asia and Europe increased.
We began seeing gotten solutions and a decline in bookings across outbound travel products, but domestic demand remained largely intact.
Well as we entered much reports up increased over 9 billion infections in India began to then the demand across our domestic lines of business.
Hi, This is that we quickly pivoted our operations to minimise cash burned by flexing variable and semi read it maybe it'll cost.
In line with the reduction of revenue in the month of much.
As it is there we still achieve Doug will offer they're not doing adjusted operating losses down to $10.3 million or $5.5 million.
Adjusted operating cash loss, if you add back the precision expenses.
We then followed up with a comprehensive review of our total cost structure to dig some very difficult decisions on a fixed costs, including salary reductions to ensure we had plenty of liquidity to see through the crisis. Starting in April we implemented salary reductions to for the Doe cash for our business.
We also addressed other fixed costs by working with outsourcing partner.
To greatly reduce the amount spent for support services as we the Repopulated many of I didn't know stuff to help with this spike and customer inquiries.
During this.
Lacoste Media you also began to focus on automating as many potential force as quickly as possible.
You can reduce reliance on call tend to support in the future.
Recently, we also rightsize out headcount largely not packages business by shifting to.
It will cost driven off landfill China's via from high fixed cost off line Chad.
And optimize in some other ideas.
Business it companies seem slow.
Collectively.
Cost actions will help us reduce fixed costs as we begin to EBITDA business, both locked down and make us a leaner and more efficient organization going forward.
No I would like to show some key highlights from our complete their fiscal year by more it really share details on a quarterly financial results.
Fiscal twentytwenty.
We achieved gross bookings up nearly $6.1 billion.
Constant currency growth of 13.5%.
To highlight covert nineteens impact on our Q4 and full year deserves it tends to remind everyone that on constant currency growth achieved was over 21% year on you know for the first nine months of its going to 2020.
For fiscal year Twentytwenty adjusted revenue also these the company their card or older $722.4 million.
The presenting constant currency growth of nearly 9%.
Well for the first nine months of this fiscal year other distant revenue in constant currency by 16% yet on you.
You also achieved over 29 million room nights.
Standalone online hotels.
But in this during the full Leo.
Grow top over 12% the full year growth was dragged down by the roughly flat units could you not standalone or does business during Q4.
Our domestic and market share continue to be robust and Andrew doing the euro to touch a peak off almost 30% of all domestic it puts and just got it the highest ever in our company's history. This reflects.
Continued outperformance relative to market.
During the full fiscal year.
Let us get it goes up dramatically loading operating losses, we managed to reduce due diligence and adjusted operating losses by nearly $29 million you had over your driven primarily by ongoing optimization and reduction in marketing and sales promotion spend.
During Q1 might be but busy optimizing cost on all fronts. We also doubled down our efforts on keep pick and product development, which would help me cutting back end systems, even more robust and unified. These integrations will go a long way to drive significant operating cost efficiencies going forward.
These new online focus product features being developed will help further enhance the booking and bosses support what our customers and dramatically reduce future line. So not one sentence, what Paul said support.
I live now slowly slowly existing radius travel restrictions. We had also working closely with supply partners to drive the de Bono.
In a post covert 19 board.
Clearly the primary concern for all future travelers will be back or hygiene and safety progress is concerned we launched a comprehensive safety initiative called My 50, you also partnered with over 30 travel industry leader.
Launch a safety pledge the goal of victors to reassure customers on safety and instill confidence to travel audit state.
Let me begin by sharing what we've been doing that but they're not hotels business.
As the crisis unfolded in late March and to drive a superior customer experience. Our contracting team worked very closely that supplies to help change nonrefundable bookings into fully refundable rates audited to feed their teams bookings for the mall in an effort to support the medical stuff combating the covered.
I think crisis, we launched specially rigs what advocates for use in status for several years programs as part of part ongoing.
Travel pledge be partnered with supplies to launch a sense certification program what hotel properties during the quarter might safety and go see.
Going forward Decertified properties will also have.
The option to be independently verified by a large auditing firm to provide further showed in to two customers. While branded hotels also have shown key nets to participate in this program. We believe an independent hotels will be an outsize been outsize benefits.
Going forward by joining this program.
To further east coast has sufficient to book, we introduce week on solutions and enhance feel interruptions to give you this complete flexibility and confidence in the future bookings.
We are also helping our hotel partners sell voted that offer great value to travelers for future traveling.
On the user experience front, we've launched new map map based so its experience on that to make it even easier to find her dad.
As far out what are the native accommodations users can now find additional details like food that engagements available entry procedures and high highly specific actions to find there.
Booked property during Q4, our team also launched and then and had that's tropics begins.
With UGC videos and picture for brand way people users now let me move onto what we're doing in other ticketing business.
Well, we continue to outperform the market.
We believe our ability to gain share can only be attributed to our brand and this will be did experience. It delivers to the books similar to the actions incipient hygiene and not hotels business.
So partnered with the lens to offer that's less chickens and luggage tags printing. In addition to highlighting all the required to Peter quadrant set forth by the government funded traveling.
Arguments are integrated marketing supply sources and blood booking platform to provide future shoppers the maximum choice in price and selection put it together.
So the Evanta flight search engine to take advantage of this integration.
Got it at Embarcadero shoppers.
We also started to drive even deeper integration with airline partner to automate more to use cases to reduce traffic on all on call centers going forward.
[noise] now turning to on holiday [laughter], Mitch witnessed healthy growth in for two months of the quarter for domestic travel both the momentum wasn't actually disrupted in lots of into wider spread across India. Currently our team is working on bosses automation to make future experiences that are packages products.
More automated and touchless.
Similarly, we had been partnering with the banks impairments providers to offer the availability of instant refunds to customers without taking on any balance sheet risk. We believe our superior technology has enabled the ability to offer this customer friendly future going forward.
Q4, I read books team also focused on automating much of our customer support and stating use as of April unquote centers.
During this lockdown the piloted project the corporate customers utilize idle buses as a way to say a few times for the employees.
We're also working with public transport companies, who offered online seat reservation.
Tools to help with social dispensing bite on board.
We continue to believe that online bus ticketing that means largely underpinning penetrated globally, which remains a growth opportunity for us.
Third we continue to develop our global read books dotcom site to make booking.
But it could any place in the world possibly.
No I would like to shed some color on our corporate business, which continue to there just a very high growth in volumes as but from a little bit.
Even as booking Bakken submitted.
Our other domestic businesses.
During the quarter pardon my vis program continued to see strong momentum off sign ups by more than hundred 75 mid sized and over 2000, that's a mean.
Our next corporate travel platform.
Q2, Pete.
So so all that either with growth and notable client wins during the quarter.
During the locked down we continue to strengthen our broader by building and tryptophan offering multiple fats and fit.
And further improve daughter automakers spend reporting to help footprint.
Manage expenses more effectively.
Similarly, we're also working that.
Supplies encouraging properties that can afford hygiene assurances mix helped which would be.
Philby top of mind for travelers going forward.
As you can see you have been quite busy doing the locked on to improve.
Existing platform and innovative new products.
If you shouldn't isn't experiences.
We believe our investments will help us pull ahead.
Competitively as we know the getting out of business recovery, we continue to build our technologies.
To ensure out future looks even better with a clear focus on automation across the customer facing experience as well as on the back end operations, we should help us local.
Structure fixed costs going forward at the same thing we believe post the crisis.
My trip group will emerge better and stronger than other plays in the market online.
Auto offline.
We also anticipate that the intense promotional spend driven environment will only continue to a bit.
Which will further accelerate our parts to better unit economics across our business segments and help with our journey to breaking even on a company that but.
Now, let me hand, it over to move it what we'll share more financial details of the quarter.
Thank goodness and Hello, everyone.
I'd like to Congress and given shared already by deepened Digest that these are clearly president good times put everyone.
During the last reported quarter I talked about the business crossing the 200 million dollar milestone in terms of registered revenue like cutting dawn I, just heard operating doors to about $11 million and the cash loss to about $6.2 million been added back written noncash depreciation and amortization expenses and there.
For getting closer to have a breakeven objective.
But if you entered the reported quarter with the same operating momentum.
It could change gears halfway through the quarter due to the unexpected and unprecedented impact of who remain being on driving demand, we quickly shifted from driving growth with improving efficiency and variable costs like marketing and sales promotions to significantly cutting down fixed costs for the next fiscal year analytics.
Sufficient off increasing perilous to actions by the end of good reported quarter.
As we started seeing the impacted demand across our various lines of business. During the first half of fiscal fourth quarter will be a clear to do them down off of marketing and promotional expense as a result, despite did was revenue impact in later part of the quarto with lower marketing and sales and almost an expense.
7.2 percentage points of gross booking versus about nine percentage points in the previous quarters, we were able to lower our quarterly adjusted operating losses.
Two about 11 $11 million in Q3 from $11 million in Q3, two about $10.3 million in Q4.
If you want to add back the noncash depreciation and amortization expenses.
Our adjusted cash losses for the quarter came down from about $6.2 million in Q3, two about $5.5 million into reported quarter.
Most importantly, as India phased in nationwide logged on that began in late March we could keep London executed significant reductions in our operating costs to minimize the cash but in a scenario of little or negligible revenue in the next fiscal year, particularly for the quarter commencing operated on board.
First we quickly stopped all external brand marketing spend and card turned a promotional expands across all lines of businesses. Good reviews. Our variable expenses next we viewed a semi fixed costs within junghans selling and administrative expenses or is your expenses and quickly took actions to dramatically scale.
Dog outflows manpower to sprint.
He also worked on reducing.
Infrastructure, IP spend including web hosting expenses and have negotiated costly leasing on multiple service providers to reduce though because expenses.
Finally, as you would have already heard we also got a personal cost.
Significantly, including almost 100% salary reduction for bought a group chairman and group CEO, along with a proxy might mean for people with incident detection club members of the senior leadership team and credit cards going down up to 10% for other management up blogs.
Is there a couple of quick unnecessary cost actions, we anticipate they're not fixed cost comprising primarily of personal energy expenses would come down from a monthly run rate of about $16 million two a month lead underdog less than $10 million during the first quarter of the new fiscal starting up.
20.
As shared about I dish do you have also these include I'd say used some of our businesses in sync with our longer term growth strategy to transition or it off high fixed cost offline sales channels frequently we had already started increasing our franchisee stores president and signed up almost about when it could be.
Rentals, which has allowed us to shut all Outta Compton Youre all played it in stores across the country. During this crisis.
The other in New York long term Rightsizing have been the dismantling of out offline themes managing corporate events as they believe corporation will optimize on non essential business travelers.
As for some time problem, though.
Vince anticipating a higher cash bonds in the first quarter in view of many many traveling during the love done conditions. We believe that we are policy divorced the traveling services gradually being restored over the last few weeks the gradually level of travel demand will help to be back revenues from the second quarter.
The new 'cause couldn't Europe and help offset approved all in the fixed costs can matter the anticipated quarterly cash, but you are on board.
In the unlikely scenario, if the voicemail situation and that the pandemic. We have also charmed alternative plans to further optimize our fixed costs, but we would action. This only if instead of being eased up but I think a solutions are the imposed we believe our liquidity of nearly $68 million as on 30%.
March along with the cost optimization initiatives that I've talked about will provide other than we have almost two years, you're going to accseven demand is not a store due to unforeseen worsening of the current situation.
Lets you don't have been usage scenario is unlikely beyond a quarter or to refi is prudent to be geared up for a longer period, given the uncertainty of depend to make and to be able to survive the available cash.
It is also am I don't know great comfort.
The company has no dependent on interest obligations going into the crises as it is a zero debt company. Therefore, despite travel demand being on existing during the last two months, we were still able to line up short on working capital and guarantee facilities thrombin and getting back to the tune up approximately $25 million.
Or the India operations, we believe.
This is good carbon disruption.
So she coke the weaker and less capitalized competitors.
Furthermore, buys it wasn't perceptible slowdown in the I guess, if prices led disruption by various other market peers, even frequently that trend is likely to accelerate in the post covered enrollment.
Globally that has been an accelerating adoption up on land buying during the pandemic. Furthermore, during this low down our team has been dust automated as much up customers experience with our branch as possible.
Our goal to accelerate owning adoption is not just limited to the booking process, but also to the process process. They believe this focus will make future experiences even better grade foster digital adoption and help us structurally keep our fixed costs lower.
Post quoting right about any scale of the building the business is still unclear. We believe make my trip is very very position to lead in the recovery of travel in the coming years.
Looking at all share more details on the reported quarter.
To begin with I'd like to remind everyone that during the last reported quarter ending December 19, weird significantly reduced the adjusted operating losses to about $11 million and the cash bone.
After adding back up noncash depreciation and amortization expenses to $6.2 billion and brought it within the range of about $10 million that you had said outdoor team during the Oh I'm pleased to report that we continued with a desired cost optimization trend even in the reported quarter.
It has put management's estimate the business had a few fully adjusted operating cash profit or loss breakeven in the Peters off January and February before the impact of coal Weird 19 heaters in March this led to the quarterly adjusted operating loss being about $10.3 million.
For the fiscal fourth quarter, which was partially impacted by covert hotels and packages domain volumes declined year on year by 0.6% do you don't hear decline of 0.2%.
Standalone hotel bookings.
Domestic bookings were slightly up the decline was driven more by Osborne bookings.
Shopping foster.
During the quarter, we'll leave it there was a decline of 15.4% to get on your in Air ticketing segment, driven by the material you get on your decline one Osborne air ticketing segments as coordinating impacted inbound and outbound travel thought earlier in the quarter than domestic travel.
Domestic air travel was fighting Jan and Fab, we did witness a 33 person declining domestic air market in the month of March due to covert 19 combined volumes decline, we were still able to grow or market share to almost 30% in the month of March.
Our bus ticketing business also seeger disruption during the quarter due to the concerns about dividers and the logged on to continue.
We believe are improving market share.
Would have helped us achieve slowed but haiti year on year volume growth of about 9%.
Total or just trying to revenue declined by about a tour from the previously reported seasonally strong.
Third quarter people are able to offset the impact off.
The impact of this reduction with an even larger cost reduction to bring down the adjusted operating loss to other than for $9 million.
Lastly, I would also like to talk about the onetime exceptional mancos recorded during the quarter.
The impact from corporate lending bend to make voice heard towards the end up the reported quarter the Indian Goldman.
Impose a log data across the country astronomy came to a sense Tim I looked a lot don't you also observed significant declines in out of stock price and market capitalization.
In the fourth quarter of fiscal year 2020, we performed a quantitative assessment of would win and pulling that assessment. We recorded an impairment charge off would be amounting to $272.2 million, but I'm really related to a glide people business, which we had acquired in fiscal year 2007.
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There has been no change in the way that the management do views our report the business at the segment level across our multiple Brent this non cash charge.
Also does not affect our longer term operating plans for the eyeball, Brian or the V., we view our operating performance during the reported quarter.
We plan to continue driving synergies across our portfolio of multiple Brian on the part of discipline and financially sustainable growth by making appropriate investments to drive online penetration in various seven segments to support the long term growth off a company, including the good people Brent.
The other onetime exceptionally metal is the provision of approximately over $30 million with respect to pension liabilities.
That could result from but not for acquisitions in the past the provision has been created due to certain it Louis award paused by the tribunals adjudicating tobacco. The awards are being strongly can distorted by the company in the appropriate quotes we believe that we have justifiable ground to contest the metal.
And we'll continue to do so going forward.
Given that the integration is still ongoing with for the proceedings contemplated we do not anticipate.
And impact to our cash flow if any in the immediate future I'd also like to confirm that these matters are not related to any routine currently operating businesses. Accordingly booed. These exceptional items have been excluded in arriving at adjusted operating losses for the reported quarter.
Before I turn over the call for Q any I'd like to call out there over the last few weeks, we have seen domestic flight demand being restored to about 15% to 20% off peak will be levels as distinctions I've been gradually east.
Also on other forms of traveling.
I believe gradually as traditional travel demand improving online penetration our focus on cost optimization, particularly in the shoretel, along with improving competitive positioning will help us not only recover but emerge much stronger from this crisis with that I'd like to turn because to the all pick.
For Q any.
Ladies and gentlemen, if your question.
Please.
And then number one.
Your question.
Once again.
Good question.
My question.
Yeah.
Well.
Thank you.
Thank you for taking the questions can.
Ken.
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Can you were a library.
Did about the a $34 million litigation or set aside.
Hello.
Yeah, we can hear you Saudi moisture you're going on so that are you on mute.
Hi, Hello, Yeah, sorry, I've kind of going after it on the meal I picked up I think the question.
Like I mentioned this is pertaining to one I thought earlier acquisitions.
Which we have also reported.
Earlier as part of our 20 EPS for the last fiscal year. This is a matter which has been under a prediction for a fairly long time now.
Received some.
Yes.
And then which was operating on the Manto and those awards that have gone I guess does however, if kind of taken those are walks through the appropriate court for you know appealing against them.
And we believe we have but a good ground to kind of be able to get the awards are the most of them either existing.
Vicki quotes and these are multiple awards and therefore, we believe that VB potentially multiple levels of appeared to be TV available to us or two appeared on these orders and also to that this any enforcement that might ensue.
The better currently under litigation and therefore, it would be possible to call out and know how does goes but we have taken up a vision because we have got Oh, you know a number on the aboard.
And the tribe I know, it's kinda fuses proceedings. So we are waiting.
You know a final judgment from the quotes in the metal, but Uh huh provided for the amount in the mean right. So it's more the onetime exceptional among <unk>.
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Thank you and I for one one last question.
These are extraordinary time, so are we all realize but twos or management have any goal for when make my trip will become a profitable enterprise.
Like like I called out you know, we can see your hobby last fiscal year. Other give reported the object. It was to kind of you know get into a range up you know a within $10 million in terms of losses per quarter.
The company was able to get there in the in the third quarter of the fiscal year.
Great and we are conducting though.
I just heard cash losses were down to about $6.2 million in fact, even in Q4 and to see our despite you know part of the quarter being significantly impacted by covered we were able to they're not going to keep the cash losses at about $500 million.
And within that I've called out you know as part of management estimate.
Muncif January February, but pretty much you know breakeven months.
Until you know the impact of covert he does a very sharply in March so I think drama.
Part of your bidding the business too so on a full cycle.
We've been able to achieve that during the peak over a period. However, the current coming in now at least for the next quarter or too there's almost like a reset of the business because in a pretty much all travel services have been check for the for the first two months of the of the fiscal <unk>, which we have already adobe.
Starting operates a we do believe Q1, we'll probably see the bostock impact on on the on the business because revenues are going to everybody.
Meager ordinary internally.
Therefore, we have taken significant steps to cut on the fixed costs and up big V. The quarterly run rate on fixed cost has been brought down from what it looks like.
45, $50 million to less than $30 million and therefore, we do expect that you'll be able to kind of keep the bond.
To the Queen piece, if at all and during the first you know highly impacted quarter, but then after we should be able to burned off you know.
Improve with every passing quarter as the business. It covers a so our expectation is that we should be able to get back to the range of $10 million hopefully over the next few quarters and then after target a breakeven again, a little too early because of businesses like I said I was just.
How about you started you know restarted in a matter of sorry, just like you know two to two weeks back I think over the next quarter also we should go to clear color of how the trajectories looking like how soon can we get there.
Thank you.
Thank you.
Question.
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Right.
Hi, Thanks, Thanks for taking my question.
My or.
Yes, you are.
Okay all right.
Thanks for taking my question and then nothing.
The flight and Luckity that all waterborne this plan.
That said whether form.
Yeah, I'm more optimistic media business, how do you see a lot of allowed to do some of these guys would be at the margin.
Alright. Thanks.
So that's one and then how would that goes inside that benefited going into the next couple of quarters.
There could be likely compression from their line and from there can be there could be likely compression in the budget for that.
How should we think about it coming in next couple of quite good.
Yeah. They should I thought you show, maybe I can just take a that both good questions.
You know under supply side, if you look at it from the hotel business standpoint, as you know whether it has been very fragmented supply ecosystem that we have.
You know our odds are.
The standing and believe right now is and this is based on online engagement that we've kept it going to deal with.
Without a partner so you know across the board all segments during the lock down as well.
Is that yes, there could be a possibility can own bad daddys more low budget kind of four properties, where they may have some kind of a spread.
Being on being able to make it on may not be able to sustain.
The long term kind of no you know we could have been doing all slaughter capacity as as the business comes back but in large part of.
Sorry, I'm sure they'll be able to finance active.
Part.
Actually it's not necessarily a de only business they actually have multiple other businesses in dress except for that.
I couldn't hear but over time back temporary and you know often have not any business happening.
But I know you know as it just didn't know what all that in this houses that are able to sustain it and and lot of the other hi segment on much segment got to give you ever does have already made investments and and the one in.
Invested in the property already like part of the capital investment has already happened.
And again on the fact that they've been able to just a restructure their debt structure to pick all that.
Becomes an issue on all things considered don't believe that that is going to be material impact on the supply it could be smart friction.
On the fight that might not be available.
And the overall supply or is.
It's huge I mean, there is no it doesn't have a number of whatever the number of rooms, especially.
But the fact that it is also alternative accommodation that has also opened up so from an overall standpoint. So we don't believe that there's going to be any significant impact on the supply a bread to all our debt on the on the hotel business side.
Nobody got here, they've got kind of potentially impacted but again that the flagship areas. We don't believe that they make it to be any kind of them Queens thing first dog going bankrupt and on some of the.
That is my unfortunately have kind of a challenge.
We've already seen some of them I've already kind of filed for it but all at all you know again.
Yes, I don't really whether it is domestic what an accidental given that the long term outlook continues to be very very strong even for domestic airs market.
And and for whatever it's worth of you know the airlines under Gerry is actually an obscene you know quite.
Like I mean number of times, they've seen the cycles up sound from idiots crisis in the past as well so we'll wait and see how it happened now actually got to their take right.
Yes, there could be you know on temporary.
Focus more on the distribution cause from the hotel side and we've been we've been in Ghana fishing with all of them as well.
[noise] from articulate 10 point I don't know what all pieces, it's pretty healthy as as you know, whereas we've been reporting out close to about 22%.
That was also hand in hand with kind of sales promotions that people I think it's going to Oh too.
So on on a nickname he says and continues to be healthy it could be it I'm pretty kind of Hum you know small kind of a reduction if you will during the greatest but you know at the same time. There is also going to be focused more and more on bringing them back from my point.
Two of your work for this to work with a partner to make sure that the you know Brooklyn kind of structure, which kind of help support objectives. If you will you know a month or two to ensure that gets me back the business thing the business back for them the volume's back for them.
So if there aren't any specific they sent on the bus sorry, if you can always her friends based on.
Area. So you know kind of take real instructors incentive based volume slap it et cetera that we can work outs and we've done it in the past. So you know no no what all this isn't it we don't really see again in the specific area of Patriots any big concern from a longterm perspective in any.
[noise] case, we had been talking about and weird shed.
And.
The state kind of a situation.
We do have some headroom and it might settle between anywhere between 17 219 or 20 per cent.
And then and we have that kind of room available. So let's see how it goes you know.
Like I said, we are totally engage when department. Because then we continued stupid, but I think they're concerning for north of it.
Okay, Alright and.
Checking you just wanted on this one I think the better.
N as in you mentioned that email you with one cream of getting shed. So this might understand why don't you T. And then for competition Ah Ah I I would've even sauce on the eighth at I need to get you authenticated ZIP code that should get like one vanilla, but yeah can decide what can I get ya.
You know again, they should if you look at the competition. Overall, so you know that we have Oh dear yeah. The root beers a couple of them that you already mentioned and then there are global OTH specifically in the hotels in fact could decide and then there has been competition from the offline world as well.
You know all the tour operators the traditional travel agents and so on whether it is you know historically boxing things and then they went out of business sometime back even people, but they were going through their own set of challenges. So on an overall they said they cross whether it isn't offline competition or an online competition.
Belief is there and if this is a game coming on some words out of the bus experience as well whenever there has been great.
Been able to just pull it away and and emotional more stronger.
Given the brand sprint and now you know the three distribution platform claim that we have Ah and deal with all kind of you know Margaret position, but we haven't in consumers mind for a brand perception for all tree branch that that we have now.
We believe that we would be relatively speaking in a better position.
Given that the amount of challenger is very big right now.
And you know and some of those numbers are out there in the public you know whether it is the cash position for some of the players were already public that's quite a apparent invisible all the cost structures or you know what can what what kind of market share that they they had so and even for the offline.
Given specifically for tour operators, given the fact that the international travel is going to take you know relatively speaking more.
Time to come back.
There's going to be a lot more focus on the domestic I think.
Actually the recovery of the.
Travel is going to be led to buy a domestic domestic travel and envy you kind of you know very strong on that front because well in fact for the last quarter, we've been just making some.
See this amount of investment on out online platform to make sure that.
Kind of <unk> bridge the gap if at all there was whether it was on supply side on on a platform from a cosmetic expedient standpoint, So I guess all things considered that's what I believe it and like I said. It is also coming from the fact that we've seen this happening even in the past whenever they were there downcycled.
Thank you and I'm not showing any further questions at this time.
Thanks, everybody else. Thank you everyone.
Things every month.
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