Q4 2021 MakeMyTrip Ltd Earnings Call
[music].
Okay.
Good day and thank you for standing by welcome to the Mic My trip Ltd fiscal 2021, and fourth quarter and full year earnings call.
At this time all participants are in a listen only mode. After the speaker's presentation there'll be a question and answer session to ask a question during the session you'll need to press star 1 on your telephone. Please be advised that today's conference is being recorded I would now.
And I'd like to hand, the conference over to your Speaker Day, Johnson Wong Vice President of Investor Relations at make my trip. Please go ahead.
Thanks, Katherine and welcome everybody to limit its fiscal 'twenty through 'twenty, 1 and fourth quarter and full year earnings call I'd like to remind everyone that certain statements made on today's call are considered forward looking statements within the meaning of the safe Harbor provision of the U S. Private Securities Litigation Reform Act of 1994.
5.
These statements are not guarantees of future performance are subject to inherent uncertainties and actual results may differ materially and.
The forward looking information relayed on this call speaks only as of the states.
<unk> undertakes no obligations to update information to reflect changed circumstances.
Information concerning these statements are contained and the risk factors and forward looking statements section of the company's annual report on form 20-F filed with the SEC on August 17th 2020 copies of these filings are available from the FCC or from the company's Investor Relations Department.
I'm joined today by deep Kalra, our company's founder and group Executive Chairman, Jeff Margo Cofounder and group Chief Executive Officer, and multi Cobre group Chief Financial Officer.
Now, let me turn the call over to deep to begin our call today.
Okay.
Thank you John.
Good day, everyone to our fiscal fourth quarter and full year earnings call.
Sincerely hope all our listeners are staying safe and healthy, especially those residing in India today.
Since our last earnings call in late January the pandemic situation and India went from cautiously hopeful to catastrophe and a very short period of time, resulting in the rise of the second wave of new infections beginning in late March.
Lead the second wave impacted a lot more people and the country moving many of our colleagues and their loved ones and the first would be in March 2020.
In these times of crisis the company through the micro foundation will pretty rapidly to provide support wherever possible.
It's just 1 of many examples our team worked tirelessly to secure staff medical facilities for liquid employees and their loved ones. We also secured vaccine access point employees and their families and created a round the clock Covid task force to help them find medical support and assistance when needed.
The leadership within the company through health care experts and constantly engaged with employees to process and mental well being and offer a positive bites to boost morale. During these highly challenging times in.
In addition, the foundation procured oxygen concentrators and ventilators to do need to nearby hospitals, and other wealth and associations to help the local community and dedicated resources to help local government agencies with relief when necessary.
Recently, we also launched Colby right and open peer to peer community platform to help individuals and organizations.
Can provide transport related assistance.
The program is aimed to help provide emergency commutes ambulance services for COVID-19 rights to vaccination of oxygen centers to and from the hospital and medical equipment and Medicine Transvaal.
As a country and the company continues to and through the current realities of pandemic life and because I would think state business we have.
Highly resilient culture that we built as an organization and.
Even more proud and grateful for our employees' generous efforts and dedication during this challenging period of our lives.
We all look forward towards the end of the pandemic, which can be accelerated with more vaccinations in the coming quarters.
And forecast by a leading global investment house predicts that 16% of the country could be fully vaccinated by the end of this calendar year.
Non domestic and imported and vaccines and become available in the coming months.
Encouragingly I am hopeful that they may have seen a big new daily infections, forming sometime in early may and.
Various state level restrictions and Lockdowns and help reduce the number of daily infections and <unk>.
Meantime, I and floor, everyone to take great care and be safe and.
And confident that this crisis with Boston due course, and that our company will emerge stronger and the recent boss and the industry inevitably recovers with the help of pent up travel demand and the human need to connect inputs and without this what.
And in spite of this confidence is that we have witnessed a very strong recovery and log market share gains and the quarter's immediately following the end of last deals nationwide lockdown.
Furthermore, as a company we are financially.
And is today than before the pandemic hit last year I shared in the previous calls we implemented multiple fixed cost structure rationalizations last summer and developed a solid playbook on how to leverage variable costs as needed.
In addition, the opportunistic convertible note issuance in early February of 2021 has significantly strengthened our financial position, allowing us to weather through this current volatility.
Even better than before.
The fundraiser Contractive films also demonstrated the investment market confidence and the company's long term growth story.
Further fueling my confidence that the rapid e-commerce adoption driven by the pandemic across India recent data indicates that more than 250 million people engage with and E Commerce platform and India up from roughly 110 million users pre pandemic and that number is expected to grow to at least $300 million by 2025.
According to a recent data and company forecast.
Once it's safe to travel and I firmly believe that the main metric group will be a key beneficiary of this rapid and permanent online buying behavior.
Now I'd like to ask <unk> to share some more color on fiscal fourth quarter.
And candy.
I hope everyone listening today is staying healthy and safe during these tough times.
And our last earnings call based on the trends seen in January and you look.
Quite hopeful of a continued pace of traveling recovery.
And we saw throughout most of February however by March as Covid infections began to rise and.
And demand and demand for travel and began to moderate.
While the current trend and make it.
And related disruptions remain in effect and is likely to persist for some more time I'm hopeful and optimistic that this crisis will be behind us and vehicles.
State level restrictions lockdowns and the gradual ramp and vaccination will be effective in controlling the second weighted in the meantime, deep falling back on the playbook that we developed during the first we have to focus on user experience improvement project on our platforms as well as keeping costs under control.
To navigate through the second.
As you can see our Q.
Q4, and financial performance was quite encouraging.
And recovery momentum quarter on quarter continue and across travel categories. The highlights of the quarter, where the recovery of all key segments on combined basis recorded of over 17% relative to the same quarter a year ago as well.
Significant improvement and adjusted operating profit.
Fourth quarter and on.
Fourth quarter and on quarter and year on year.
Mohit will share further details in his section and quick.
Despite the pandemic effect the scale of our company and continue to increase.
And reached 51 million life to date customers into Q4 fiscal year 'twenty 1 and.
At the same time.
User contribution to our brands also increased by 200 basis points since February of last year.
And to represent 22% of the total this much.
While we have been able to capture new users Ah repeat rates have also remained consistently high reaching 70% and Q4 helps.
Helping to drive this retention is also the fact that more than 2 thirds of our traffic comes directly onto the platform.
Now I would like to share some of the achievements made with.
Our various businesses, starting with IATA Commendation businesses.
And we recovered more than 70% of the room nights when compared to the same quarter a year ago. During Q4, we continued to see more hotels reopen and 75% of the room inventory on our network were ready and able to take bookings at the end of the quarter.
Continuing demand from short duration, and getaways and the premium category hotels and pricing trend from Baas Corp, fourth quarter and allowed us to grow our contribution to exceed to pre pandemic levels for our premium category Department.
Similarly demand for alternative accommodations.
And strong even and hotel demand and gained ground in Q4 as more than 63% of these types of socially distant possible properties.
And for bookings during the quarter.
While our team focused on business recovery. You also continued to make the right long term investments back into the business. For example, we introduced a new room type shopping experience easily.
Allowing customers to compare between different amenities and room rates and.
The better content also showcased room price more effectively helping drive sales of higher room categories, and the value proposition and became more apparent to chocolates.
While much focus was placed on customers and you also combine the supply management functionality onto 1 common platform across all brands and this will allow us to onboard and manage supply from all partner sources seamlessly.
We integrated our supply and pricing engine across all our brands, making this system react and respond faster to customer searches and lastly.
Lastly for our alternative accommodation users.
Previously announced people can chat function continue to gain popularity. This feature allows potential guests get to get clarification and inputs from Horst and increases our confidence and booking.
Alternative accommodations now let me share the pace of recovery that we witnessed during Q4 within our air ticketing business.
Before the second wave there doesn't need much and.
And capacity.
And even within the domestic market reached nearly 73% on average for the quarter versus pre pandemic during the quarter. Our domestic percentage segment booked had recovered to nearly 84% over the level achieved a year ago, while outbound air ticketing recovery remains muted due to the closed borders.
Continued recovery momentum allowed us to maintain industry, leading market share within the domestic market, which had been improving incrementally since the pandemic began a year ago. The company was noted by consumers and pent up demand once the lockdowns and COVID-19 restrictions for leisure destination.
Destinations like Gore and they are doing and recovery in excess of 100% during most of the quarter.
And like the quarter before.
And this focus destinations like Delhi, Mumbai and Bangladesh.
2 lagged leisure traveling with recovery rates and the mid 60% during.
During Q4.
Flight team continued to deliver relevant products through brokers, including price lock to get brokers and option to call. The good fair for a nominal fee.
And our multi city search and booking experience, enabling users to pick and choose from optimized combination of flights, reducing time and effort needed to create and book a trip.
We introduced low times further to speed of automobiles.
Web experience, leading to a 20% increase and conversion rates via this channel now let me move on to share an update on our bus ticketing business, which has seen.
Net inventory recover and the private bus operator market in excess of 90% of peak over days this improvement and supply has enabled us to recover and nearly 70% of bus ticketing seats sold when compared to Q4 a year ago.
More State Road Transport Corporation Rx heart disease.
Also greatly increased seed inventory on our distribution platform as part of their ongoing efforts to push Digitization and contactless ticketing in fact, I thought you see inventory available for distribution is now, 35% and greater than pre pandemic day, giving a sizable long term headroom for growth as this.
The segment is still largely underpinned and penetrated online.
During Q4, we also saw a favorable regulatory change by region and government loading licensing or permanent charges for the Interstate bus operators, which should lower prices for travelers and set the stage for longer and your bus routes to emerge going forward. In addition, and as availability of automobile transport had been.
Due to the pandemic, we had seen a travel shift to work.
Towards buses as a result, we have partnered with iOS CTC or Indian railways to bother their bus ticketing platform and.
And Q4, we also launched primal and invite only program open only to highly weighted both services on Red bus.
Travelers can now book from this collection of blood service to enjoy the best possible onboard experience for the joining the program provides operators constant feedback data mining of course from a ratings and reviews and helping to improve their operations quality and occupancy rates and the team we continue to be very optimist.
All of this business segment's long term growth prospects now I would like to share a quick update on Aro and the ground transport business, which includes cabs and train ticketing.
Ground focused business was launched during the beginning of 2019 and.
And continue to see solid traction predominantly from the hinterlands of India.
Furthermore, this segment also helped to capture nearly 24% of all new users onto our platform.
To improve the booking experience for intercity travel and cab relaunch features to pick a specific car model fuel type.
Commendations and safety.
Similarly on rail ticketing, you're also rolled out free cancellation for all our real users, which has yielded significant traction with the masses of real users. You also launched when that clarity youre going to generate more organic growth beyond the English speaking population residing in the colloquial bought it and.
Revival of leisure travel continued from much of Q4. We were also pleased to see a revival of our domestic corporate travel business in fact, certain sectors like pharma and learning and construction had already leased over 80% of pre COVID-19 business travel levels and.
As a result, and corporate platforms of my business and Q2 deep <unk>.
And I've seen healthy recoveries of 60% and 44% when compared to the same quarter last year.
<unk> supported by New accounts acquisition in Q4 might be acquired more than 250 day, New key accounts and 750 more Smes and these new accounts and the quarter also accounted for nearly a fifth talk my business revenue highlighting the demand for our self serve online corporate travel platform.
And like Us.
As for our enterprise grade solution do duty and team on board and 11, new large well recognized corporates onto the platform and in addition to our corporate and divert them all.
Also pleased to reported Arclight phone for offline travel agents called my partner and <unk>.
Continue to move forward designed as a way to expand our reach to the offline growth in and asset light and scalable way.
And I'll have more than 11000 partners on the platform with more than 1 third actively selling while initially launched with just our hotel product. We have now added domestic and international flights also on our platform.
While it's early days, we believe this program will help us further broaden our reach going forward and lastly, I would like to share an update on our efforts and the GCC argument lease market.
We continue to focus on improving the user experience. We are now fully live with deep red brick language for our flight and hotel product on both desktop and mobile web.
Our multi lingual content has helped us build and that clarity of pages and acquired motor and Big speaking travelers soon and we plan on expanding our offerings to our mobile apps and other channels.
Downloads and new users and increasing gradually in the region. We believe our investment in this region today and will help us capitalize the demand pick up as the market picks up post COVID-19.
As you can see Mcmurtrey best positioned itself, well, both and brand and product selection and offerings before and during the pandemic and we continue to build out the country's superimpose that drove it.
We believe given our strong financial position you will certainly lead the way and the recovery once we get past the current pandemic and deliver long term financial value to our stakeholders lastly, with India's daily case infections, reducing offered speak and early me and going by the experts estimates.
And waves and density will continue to come down and gradually from now onwards, and as that happens travel and recovery will resume gradually as well.
As we enter into fiscal Q2 of this year.
Currently.
And local trade rating agency and distribute their domestic air travel could return to pre COVID-19 levels by fiscal year, 2020.3.
Predicated on mass vaccinations by year and that would blend any impact from a toward revolt infections.
This prediction is aligned with our views the recovery momentum will pick up only as domestic net vaccination.
Progress and daily recorded cases, and lower to a more manageable level and the country.
With that I would like to hand over the call to Mohit to share more color on our financial results and Q4.
Frankly, I wish and I hope all of them and it sounds like staying safe and healthy.
Sure Luke.
Our financial focus as a company has been and continues to be optimizing our operating costs, while trying to maintain minimum quarterly cash burn.
And that is clear.
And the plan to them and underscores until we reach the Mastercard and recovery.
And the near term challenges of the second day.
Relentless and disciplined cost optimizations, coupled with the ability and the domestic recovery demand in most part of the reported quarter helped us deliver.
Operating profits of $11.1 million moving to core because here's a bottle and expectations.
This is more than the longer and just sort of operating profits.
And this quarter, but also the high operating leverage potential as a result of a rationalized cost structure.
And 2 for overall business recovery compared to the same quarter last year, which was also a quarter, where the pandemic started to take its toll on the apparel business was about 64% in terms of gross bookings and constant currency towns and reaching nearly 306.2 million.
Are the Pumilia, our growth built into the border to well over $1 billion.
At about 28, 1 percentage of the bookings and the throughout fiscal year 2020.
And a very long downtime and the pandemic has severely impacted travel demand across India.
And most part of fiscal year, 'twenty or 'twenty 1.
Moving on to other business segments.
And just and margin story.
$32 million.
And because the company of 1.5% and constant currency comps when compared to the same quarter a year ago.
And now a 47% quarter on quarter improvement over Q3.
For the full fiscal year adjusted margin for the air ticketing business was.
And $2 million on any political things of the 11, 2 and fiscal year 'twenty and constant currency.
Just and margin.
And packages business, we still have plenty of pipelines and $6 million and careful which is about 5 points and sports and recovery and constant currency comps versus the same quarter a year ago.
And also a continued improvement of 42% on a quarter on quarter business day.
Mr margin as a percentage of gross bookings for this segment has remained stable over the last few quarters, but has been.
More and on the year on year. This is due to the hired and itself Brandon.
Bookings that has been leading the travel recovery so far.
For the full fiscal year, although they'll come back with their interest and margin was $65 million or roughly 20% of fiscal year, 2020 and constant guaranteed dumps.
It's not our bus ticketing business interest.
Margin stood at nearly 11 million and dividends.
More than 67% year on music already Gotcha got into accounts and was up nearly 22% over the previous quarter similar to our advertising business.
And just in margins as a percentage of gross bookings that remains.
During the year and as we see more and then Kraft foods.
And it does go up that sounds from operators and we should call digitization of distribution and operations your independent ethically.
So the simple school.
And just and margin stood at $22.9 million.
32% of the fiscal year, 'twenty and constant currency dumps.
Lastly, we adjusted margin.
And as well.
And $2 million deposits thing or you don't get the company up about 7% and concerns and their jobs and then.
And try to 6% over the previous quarter.
In fiscal year <unk>.
And just stared margin was cause in PON and $6 million.
Total for 1% of different margin part of the business.
During fiscal year 'twenty 'twenty 2.
And get dumped.
Let me now share some details around the operating cost and profitability the reported quarter, but continuing to sharpen our focus on fixed cost discipline.
And marketing efforts and.
And we entered the comex across our lines of businesses.
And that's going to convert those variable expenses there.
Logic and places all marketing and sales promotional expenses.
And I was in the previous quarters, we made some mistakes.
And be around yard improvements and these expenses it stood at 4.8% of gross bookings compared to 7.2% of those bookings and the same quarter last year.
On a quarter on quarter basis.
And as extensive as a percentage of bookings did increase.
But this was in line with group revenue demand weakness during most parts of the reported quarter.
And for people that simple.
Personnel and <unk> expenses came in at about 30 coupon and $2 million.
Compared to about $45 million and the same quarter last year.
Sales of multiple cost efficiency initiatives undertaken by <unk> during the course of this year.
And just the personnel and.
<unk> expenses were lower by about 41% compared to the loss from fiscal year.
And the full impact of fixed cost restructuring efforts during this pandemic and bacteria.
And so we've built up our cost discipline.
Efficiency gains and strong recovery momentum and most parts of the reported quarter.
I'll just start operating profit of $11 million.
And put them on top of what could be $1 million.
And loans and improvement of $6 million over the previous quarter.
And it just started.
Margin expanded about pinpoint and Cooper.
And just took total Paul.
Other non cash depreciation and amortization expenses.
And just to operate.
And cash flow.
And at $15.2 million compared to a loss of pulp and $7 million and the same.
A year ago and up from a profit of about $9.5 million and.
The previous quarter.
We're glad to report that the Covid impact and it depends on mix.
'twenty 'twenty 1.
And we'll talk to you and just 2 and operating cash breakeven.
And just kind of operating cash flow free.
And nearly $1 million.
Compared to it and just turn operating cash loss of about $200 million and the previous year.
And then suddenly we opportunistically issued zero coupon convertible senior notes.
And $30 million with a net cash of 200 and trying to pull vignette and after factoring and transaction expenses and then.
And it doesn't last issuance and positive quarterly adjusted operating cash flow to pinpoint and $2 million.
And how's that.
And of course, the first part and stood at the.
And reported on and $50 million and comes.
Comes up cash and.
And cash equivalents.
Additionally, we have deep and guarantee facilities.
And the million dollar.
And all of the credit facilities remain undrawn.
Before I hand over.
The call going up and it up for questions I'd like to offer some color on the general trends that they've been seeing 2 day bidding the new fiscal year and Q1.
As you have seen the last reported quarters.
And I'll go nationwide Lockdown zone, we have been able to achieve good recovery on a quarter on quarter basis across all lines of the type of horrible and given the timing and screen and the second wave.
This new fiscal year, we have once again sales were travelling demand and big significantly impacted quite a bit.
And so.
Though there are non mission by travel restriction and many states nothing that's the channel as well as emphasis to concerns about the demand for travel services during this ongoing quarter by.
And I have moved beyond our control, we have and continue to lean on a payable.
Tight cost controls from last summer and and to maintain minimum cash bonds, particularly during the highly impacted first quarter fiscal year <unk> voting, the deep picture and claims coming down to levels that it was actually Cody can resume again.
And the deck I'd like to turn the call over to the operator for Q&A.
Operator please.
Thank you as a reminder to ask a question you'll need to press star 1 on your telephone to withdraw your question press the pound key again, that's star 1 to ask a question.
1 moment, while we compile the Q&A roster.
And again, that's star 1 to ask a question.
And I'm, not showing any questions and the cube.
1 moment.
We have a question from Ashwin Mehta with and its capital your line is open.
Yeah, Hi, thanks for the button and it would be.
Just 1 question Mohit.
This quarter, you had the air ticketing day Grand Central and substantially.
And I don't need by 9% so what other drivers of this.
And do you think at least in the pediatric bad at lines you have to pull.
And when 3 then it can be bus and V and elevation and given that you indicated that I didn't change and driving that uptick.
Right and you don't get something that you and other airlines that are operating.
Low load factors.
And we incentivize and counsel driving demand and.
We have been large volumes of later and all of us here.
And.
There has been and centralized isn't coming in from the airlines to the bulk of demand.
And multiple factors and they reported I think that.
Optical kind of and I thought I thought the gross margins from the air ticketing business.
And then just to kind of at home.
And particularly into the load factors.
Currently low and like and are we have been mentioning as the low type of its terribly.
And with virtual discovery and Kevin demand moving.
And it will be a landmark deals and kind of and I'll come back to the surface antigen levels.
Okay. Okay and is this is this largely a b.
And he can give interest to make make them because of day Dominion. Instead of this is this is across the industry, where and what he is would have benefited because of this phenomenon.
And what kind of you know I'm going to be a bit.
Oh boy.
Goodbye this quite a good month.
And that's what I was saying this is probably a bit of both.
Clearly you know.
And we see the.
And the devaluation and tighten up and are working much better.
Much better kind of and all Bob and volume.
And if it's coming through on <unk> sounds like myself and I do bolt and therefore, we believe this will probably be and even slightly better than what is being made available dividends from the industry.
Okay, Okay, and just 1 question in terms of you mentioned that.
You've seen a 35% and trees in terms of their society.
Inventory on your on your platform.
D C would be like we've disclosed and the pause that we have around and 1.5 million plus seats and bus ticketing.
So as our D C would be how big in terms of industrial and oil and wait and free on that platform.
Yeah, I didn't take their dust.
Sure and.
The overall size and so D C market by the day.
And.
The largest private operator and bus market as well so the French laws and whats it going to be trying to high alert and the benefit that doesn't happen during the pandemic. The difference was the private operators.
Coming online and I had already come online and a big way and just.
And just sort of I'm, becoming more tech savvy and get out and we've been on so getting and helping them and their tools et cetera to get good inventory online the day still transport undertakings, we're taking time and for various reasons right, so not necessarily all of them, but absolutely.
Up to speed in terms of gifts and bringing the.
The entire inventory that they had and ongoing.
Platform, so what what happened during the pandemic and the lost or over several quarters now just over a year and.
As the Covid I'm now on <unk> and you know last March.
And that you know the offline on distribution and sort of dried up and then there was a clear desire and.
And and lot of the efforts were putting on to bring that inventory online and so as it is learning stuff day, what inventory levels. We used to have it gone non smart home audio went up by 23%.
And.
And as compared to what we used to average pre COVID-19 levels, but in terms of just.
Seat. So it is pretty much be all day value terms. It is the same size.
And the private operator bus market segment.
Okay, Okay, and just 1 last question.
And so we've tested out and 51 million life day to day.
Date transacting users now what you mentioned was net GAAP booking and trained and booking is helping you expand to the extra day why tobacco.
Bachelet about it.
So is there a divergence in terms of in terms of say the overlap is much lower between shareholders and and.
Thank you for taking users was essentially a bus ticketing cab and and others and that at some point in time and.
And in terms of graduating the number of users, which I've got and can you say around $50.51 million.
Yes, Youre right.
And then there is that's really the objective are cured them and you know and we were trying to push the real transactions are all for that matter intercity cab between the 2 intercity cab and might have a relatively speaking more overlap and then real users and their tool the real users.
And for specifically.
And bookings second class bookings and not necessarily the force plus all the air conditioning and.
You know the seats or are the customers who are using those.
And you know sort of reservations and therefore, there too that we are seeing and the benefit of on our platform that these initiatives are helping us getting new users.
Because if you really see.
We will go to all E. Commerce users are more than maybe about on the NIM from 3 million today, but the overall travel E. Commerce users might be you know about 70 million plus minus.
Idea is.
To basically expand the new users coming on our platform and this will certainly help beauty definitely.
You've seen and not necessarily less.
Overlap, but also the fact that you know.
And there has been a decent amount of cross sell happening to the other products over time as well.
Okay fair enough, thanks, a lot and all the best.
Thank you.
Thank you. Our next question comes from Contra Rytary and <unk> with Morgan Stanley. Your line is open.
Hi from Jackson.
And your distribution and I have a couple of questions plus knee deep just wanted your perspective on what do you think about the horizontal platforms and bring into their travel because we always want it's more like a vertical business.
And I'll never do anything globally.
Is there any drag from horizontal and trying to scale up and this part of the business or how to think about that.
Yeah No no. It's a good question you know and this is now.
Out of Newark evidence, we have seen horizontals and trying to get into travel and the Boston whaler and.
But we are also at some point of time powered some of the Horizontals is doing this.
Thank you.
It's an obvious thing for the horizontal to want to do to get into more and more categories and passenger growth and the same categories doesn't always keep pace with how fast you'd like to grow and therefore, you have the customers you'd like to sell them other things.
And it does what it is during damage to low to dimension of products, which is likely at all and ticketing. So horizontals have been successful and selling rail tickets are there.
<unk> read I think lodge and need there's an argument and such a price issue because there's only 1 flow.
And there is effectively the only variable and the mine really is has there been ability or not.
And so therefore realistically have moved quite well, particularly discounts at all for the spectrum and platforms. In addition to that I think bus ticketing has seen some support but.
Less pantry and if we.
Come to air tickets and it's even less.
The 2 dimensional product, it's really around price and timing.
But still I think people then have issues and concerns when you're buying something travel.
What we have found to our research consistently is that the concerns are very different.
Firstly when people are on the horizontal buying let's say something they need whether it's groceries or something so I mean durable et cetera.
And the same frame of mind us travel when you're and travel it's a different frame of mind when youre looking for travel you want to go to and export and then people start thinking about possibilities of changes possibilities of cancellation, specifically during such times of high flux and they definitely wanted to work with specialists, we have seen and.
And for this to go to even more evolved product. So, let's say international air tickets, they're not succeeding at all on and demands on horizontal platforms.
J J.
Generally speaking.
And finally, if we talk about hotels and accommodations again, we have found that they haven't moved actually the needle when it comes to orders onto correct from its really the the rhythm all for travel focused traveler dedicated players. So I am not saying that they will not be any and Pat.
Definitely I think on the ticketing side of the business. We can expect to see that that is going to be another multiple funds and someone who is getting into this today and like flip cardboard box per trip is definitely going to invest and this line.
Avi or wouldn't be bothered are concerned because you've seen this play out in the past not just from India, and even overseas and it hasn't really worked out as you get into the higher value added services.
Great.
A question and.
And you called out on the market share and the domestic air side and how we price change during the course of the time to make any color on that.
Hum like like we mentioned that we've been and acute gaining you incrementally.
And I think he and announced last quarter same year our.
Sure It was about 27, 9%.
And in this reported quarter will be over and over 29% or so.
Got it and last question for Mohit and when you look.
<unk> got some money and use them and cost.
It's fair to say at this point and time, the large part of the cost will be to drive repeat behavior and very limited box.
Moving to apply it and new customers.
And I'll tell you, our tobacco and large part of the call.
And new customer workloads to drive that you've made there.
And just trying to distinguish between the parking all the cars.
And and disciplined cost and breaking it up into the physician offices and reserves.
Behavior.
Thank you.
Yes sure.
And let me just because theres been underwriting it.
And from the existing customer base.
And for small business I talked about but I think the groups for them and therefore clearly.
And that's part of it is is that a day towards that.
Other than kind of new customer attrition for the 2 day.
Thank you.
Thank you as a reminder, if you would like to ask a question press star 1 on your telephone.
Please standby, while we compile the Q&A roster.
I'm showing no other questions in the queue I'd like to turn the call back to management for any closing remarks.
Thank you Catherine thank.
Thank you to all our listeners today I hope you all stay safe and healthy and we look for.
Forward to speaking to all of you soon.
You may now disconnect.
Thank you everyone.
Yeah.
And everyone.
This concludes today's conference call. Thank you for participating you may now disconnect.
[music].
Yeah.
Yeah.
[music].
And.
And then.
[music].
Okay.
[music].
[music].
Good day and thank you for standing by welcome to the my My trip Ltd, 's fiscal 2021, and fourth quarter and full year earnings call. At this time all participants are in a listen only mode. After the speaker's presentation there'll be a question and answer session to ask a question. During the session you will need to press star 1.
1 on your telephone please be advised that today's conference is being recorded I would now like turn the conference over to your speaker today, Charles and Wong Vice President of Investor Relations and make my trip. Please go ahead. Thanks.
Thanks, Katherine and welcome everybody to make might ship and limit its fiscal 'twenty through 'twenty, 1 and fourth quarter and full year earnings call I'd like to remind everyone that certain statements made on today's call are considered forward looking statements within the meaning of the safe Harbor provision of the U S. Private Securities Litigation Reform Act of 1995.
It.
These statements are not guarantees of future performance are subject to inherent uncertainties and actual results may differ materially and.
The forward looking information relayed on this call speaks only as of the states.
<unk> undertakes no obligations to update information to reflect changed circumstances.
Additional information concerning these statements are contained and the risk factors and forward looking statements section of the company's annual report on form 20-F filed with the SEC on August 17th 2020 copies of these filings are available from the FCC or from the company's Investor Relations Department.
I'm joined today by deep Kalra, our company's founder and group Executive Chairman, Jeff Margo Co founder and group Chief Executive Officer, and Mohit Chopra Group Chief Financial Officer.
Now, let me turn the call over to deep to begin our call today.
Right.
Thank you John.
Everyone to our fiscal fourth quarter and full year earnings call.
I really hope all our listeners are staying safe and healthy, especially those residing in index there.
Since our last earnings call in late January the pandemic situation in India and from cautiously hopeful to get that.
And a very short period of time, resulting in the rise of the second wave of new infections, beginning in late March and Fad.
Lead the second wave impacted a lot more people and the country, including many of our colleagues and their loved ones and the first call. It day in March 2020.
And these times of crisis the company towards it.
Foundation and ease.
Rapidly to provide support wherever possible.
And it's just 1 of many examples of our team worked tirelessly to secure stopped medical facilities for all afflicted employees and their loved ones. We also secured and vaccine access point employees and their families and created a round the clock Covid task force to help them find medical support and assistance when needed.
The leadership within the company through health care experts and constantly engaged with employees to assess their mental well being and offer a positive bias to boost morale during these highly challenging times and.
In addition, the foundation procured oxygen Concentrators and Bentley does to donate to nearby hospitals and other wealth and associations to help the local community and dedicated resources to help local government agencies.
<unk> way and that study.
Recently, we also launched Kobe, right and open and peer to peer community platform to help individuals and organizations. He can provide transport related assistance.
The program is aimed to help provide emergency commutes ambulance services for COVID-19 rights to vaccination of oxygen centers to and from the hospital and from medical equipment and medicine strong score.
And this country and the company continues to and also the current realities of pandemic life and the resulting state business, we've got and proud of highly resilient culture, that's been built as an organization.
Even more proud and grateful for our employees' generous efforts and dedication during this challenging period of our lives.
We all look forward towards the end of the pandemic, which can be accelerated with more vaccinations in the coming quarters.
And forecast by a leading global investment house predicts that 16% of the country could be fully vaccinated by the end of this calendar year.
Non domestic and imported and vaccines and become available in the coming months.
Encouragingly I am hopeful that they may have seen a big new daily infections, forming sometime in early may and.
Various state level restrictions and Lockdowns and helped reduce the number of daily actions and.
Meantime, I implore every wanted to take great care and be safe and.
And I am confident that this crisis with Boston due course, and that our company will emerge stronger and the recent boss and the industry in a rapidly recovered with the help of pent up travel demand and the human need to connect in person with us.
In spite of this confidence is that we have witnessed a very strong recovery and market share gains and the quarters immediately following the end of last year's nationwide Lockdown.
Furthermore, as a company we are financially.
And yes today than before and that makes it last year I shared in the previous calls we implemented multiple fixed cost structure rationalizations last chemo and developed a solid playbook on how to leverage variable costs as needed and.
In addition, the opportunistic convertible note issuance in early February of 2021, and significantly strengthened our financial position, allowing us to weather through this current volatility even better than before.
The funds raised at attractive loans also demonstrated the investment market's confidence and the company's long term growth story.
Further fueling my confidence with a rapid e-commerce adoption driven by the pandemic across India recent data indicates that more than 250 million people engage with and E Commerce platform and India up from roughly 110 million users pre pandemic and that number is expected to grow to at least $300 million by 2025.
According to our recent data and company forecast once it's safe to travel and I firmly believe that the make Patrick group will be a key beneficiary of this rapid and permanent online buying behavior.
Now I'd like to ask <unk> to share some more color on the fiscal fourth quarter.
And good day.
I hope everyone listening today is staying healthy and safe during these tough times.
And our last earnings call based on the trends seen in January.
Full of a continued pace of traveling recovery, which we saw throughout most of February however by March as Covid infections and began to rise and.
Demand and demand for travel and began to moderate.
And the current trend and they're making it.
And related disruptions remain in effect and is likely to persist for some more time I'm hopeful and optimistic that.
This crisis will be behind us in due course.
Third level of restriction lockdowns and the gradual ramp and vaccination will be effective in controlling the second wave in the meantime, we fall back on the playbook that we developed during the first we have to focus on user experience improvement projects on our platforms and windows keeping costs under control.
To navigate through the second.
And you can see our Q4 and financial performance was quite encouraging.
Travel and recovery momentum quarter on quarter. It continued at gross travel categories. The highlight of the quarter the recovery of all key segments.
And this is recorded up over 17% relative to the same quarter a year ago.
Significant improvement and adjusted operating profit both quarter and on corn.
Quarter on quarter and year on year.
Mohit will share further details in his section and I have it.
Despite the pandemic effect net.
And of our company continued to increase and.
And reached 51 million life to date customers and Q4 or fiscal year 'twenty 1 and.
At the same time.
User contribution to our brands and also increased by 200 basis points since February of last year.
And to represent 22% of the total this much.
While we have been able to capture new users Ah repeat rates have also remained consistently high reaching 70% and Q4 and <unk>.
And to drive this retention is also the fact that more than 2 thirds of our traffic comes directly onto the platform.
Now I would like to share some of that you mentioned Megan without.
Various businesses, starting with IATA Commendation businesses.
And we recovered more than 70% of the room nights when compared to the same quarter a year ago. During Q4, we continued to see more hotels reopen and 75% of the room inventory on our network were ready and able to take bookings at the end of the quarter.
Continuing demand for short duration, and gateways and the premium category hotels and pricing trends from both growth last quarter and allowed us to grow our contribution to exceed to pre pandemic levels for our premium got degree Barton and similarly demand for alternative accommodations.
And strong even and hotel demand and gained ground in Q4 as more than 63 per se and all these types of socially distant possible properties.
And for bookings during the quarter.
While our team focused on business recovery, you're also continuing to make the right long term and regimens back into the business. For example, we introduced a new room type shopping experience easily.
Allowing customers to compare between different amenities and room rates the.
The better content and so shook his room base more effectively helping drive sales of higher room categories and the value proposition.
And what about and do chocolates.
And much focus was placed on customers and you also combine the supply and management functionality onto 1 common platform across all brands and this will allow us to onboard and manage the flow from all partner sources seamlessly.
We integrated our supply and pricing engine across all our brands, making this system react and respond faster and customer searches and lastly for our alternative accommodation users.
Previously announced be booking chaired function continues to gain popularity. This feature allows potential guests get to get notifications and inputs from Horst and increases our confidence and booking.
Alternative accommodations now net.
Let me share that.
Pace of recovery that we witnessed during Q4 within our air ticketing business before the second wave and it doesn't make much.
And the capacity and it.
And even within the domestic market reached nearly 73% on average for the quarter versus pre pandemic during the quarter. Our domestic passenger segment booked had recovered to nearly 84% over the level achieved a year ago, while outbound air ticketing recovery remains muted due to the close what is this.
Continued recovery momentum allowed us to maintain an industry, leading market share and within the domestic market, which had been improving incrementally since the pandemic began a year ago. The company was noted by consumers and pent up demand and once the lockdowns and COVID-19 restrictions for leisure destination.
Destinations like Gore, and Theyre doing and recovery in excess of 100% during most of the quarter.
Like the quarter before.
And this focus destinations like Delhi, Mumbai and Bangladesh.
2 lagged leisure traveling with recovery rates and the mid 60%.
During Q4.
Slightly and continue to deliver relevant products through brokers, including price lock to get brokers and option to call. The good fair for a nominal fee.
Revamped our multi city search and booking experience, enabling users to pick and choose from optimized combination of flights, reducing time and effort needed to create and book a trip.
And we reduced low times further to speed of automobiles.
Web experience, leading to a 20% increase and conversion rates via this channel now and let me move on to share an update on our bus ticketing business, which has seen it and when could you can recover and the private bus operator market and excess of 90% of peak holidays, this improvement and such.
<unk> has enabled us to recover and nearly 70% of about ticketing fees.
So all when compared to Q4 a year ago.
All State Road Transport Corporation Rx our D C.
Also greatly increased seed inventory on our distribution platform as part of their ongoing efforts to push Digitization and contactless ticketing. In fact, that's how do you see inventory available for distribution is now, 35% and greater than pre pandemic day, giving a sizable long term headroom for growth as this.
Segment is still largely underpinned and penetrated online during.
During Q4, you also saw a favorable regulatory change by the Union government lowering licensing or gourmet charges for the Interstate bus operator.
It showed lower prices for travelers and set the stage for longer and your bus routes to and mortgage going forward. In addition, and as availability of automobile transport had been affected due to the pandemic, we had seen a travel shift toward.
Towards buses as a result, we have partnered with iOS CTC or Indian railways to barbell their bus ticketing platform and.
In Q4, we also launched primal and invite only program open only to highly weighted bus and with it Andre bus.
Travelers can now book from this collection of our servers to enjoy the best possible onboard experience from the journey the program provides.
Great and constant feedback.
Data mining of customer ratings, and reviews and helping to improve their operations quality and occupancy rates and the team. We continue to be very optimistic about this business segment's long term growth prospects.
I would like to share a quick update on our other ground transport business, which includes cabs and train ticketing and this ground focused business was launched during the beginning of 2019.
And continue to see solid traction predominantly from the hinterlands of India.
Furthermore, this segment also helped the captured nearly 24% of all new users onto our platform.
To improve the booking experience for intercity travel non-GAAP relaunch features to pick a specific commodity fuel type.
Commendations and safety.
Similarly on really ticketing, you're also rolled out free cancellation for all our real users, which is the significant traction with the masses average users you also launched but and that clearly if youre content and to generate more organic growth beyond the English speaking population residing in the colloquial but it.
And as the revival of leisure travel continued from much of Q4. You were also pleased to see a revival of our domestic corporate travel business in fact, certain sectors like pharma E learning and construction and already leased over 80% of pre COVID-19 business driving levels.
Levels as a result, and corporate platforms of my business and.
Q2 <unk>.
I've seen healthy recoveries of 60% and 44% when compared to the same quarter last year.
<unk> supported by New accounts acquisition in Q4, my acquired more than 250 day, New key accounts and 750 more Smes and these new accounts and the quarter also accounted for nearly a fifth talk my business revenue highlighting the demand for self serve online corporate travel platform.
Like us.
As for our enterprise grade solution, you too deep on team on boarded 11, new large well recognized corporates onto the platform and in addition to our corporate and never I'm also pleased to reported aren't large phone for offline travel agents called my partner and continue to move forward designed as a way to expand our reach to the offline and board.
And an asset light and scalable way and all.
And have more than 11000 partners on the platform with more than 1 third actively selling <unk>.
And while initially launched with just our hotel product we have now added domestic and international flights also on our platform.
While it's early days, we believe this program will help us further broaden our reach going forward lastly, I would like to share and appeared on our efforts and the GCC argument lease market and we continue to focus on improving the user experience. We are now fully live with deep.
And a big language for our flight and hotel product on both desktop and mobile web the multi lingual content has helped us build a nuclear fewer pages and acquired motor and big speaking travelers soon.
And then on expanding our offerings to our mobile apps and other channels.
And <unk> download and new users and increasing gradually in the region, you believer and I spend and this region today and will help us capitalize the demand pick up as the market picks up post COVID-19.
As you can see Nick my trip has positioned itself, well, both and brand and product selection and offerings before and during the pandemic as it continued to build out the country's super apples and traveling.
We believe given our strong financial position you will certainly lead the way and the recovery once we get past the current pandemic and deliver long term financial value to our stakeholders lastly, with India's daily It is infections, reducing offered speak and early may and going by the Pittsburgh estimates net.
And waves and density will continue to come down and gradually from now onwards and.
And that happens travel recovery will resume gradually as well as we enter into fiscal Q2 of this year.
Recently.
From a local trade rating agency and distribute their domestic air travel could return to pre COVID-19 levels by fiscal year, 2020.3.
Indicated on mass vaccinations by year and that would blend any impact from and toward meaningful infections. This prediction is aligned with our views the recovery momentum will pick up only as domestic net vaccination.
Progress and daily recorded cases, and lower to a more manageable level and the country with that I would like to hand over the call to mohit to share more color on non financial results and Q4.
Thank God this and I hope all of them and it sounds like it's clean and safe and healthy.
And the previously shared new Covid pandemic, our financial focus as a company and.
Dean and continues to be optimizing our operating costs, while trying to maintain and even quarterly cash burn.
And that is clear.
And then on this growth until we reach from domestic problems and activity. Despite the near term challenges of the second day.
Relentless and disciplined cost optimizations, coupled with the ability and the diverse recoveries and bought in most part of the reported quarter helped us deliver operating.
Operating profits.
And $1 million moving to core which was a bottle and expectations.
And this is lower than the 1 day, they start operating profits or the previous quarter Lamar and serving the high operating leverage potential as it is and talk about rationalized cost structure.
And 2 for all business recovery compared to the same quarter last year, which was also of course I read from the pandemic started to take its toll on the government business was about 64% in terms of gross bookings and constant currency accounts, reaching nearly $260 million for the fourth.
Our gross but then to report there.
Over $1 million.
At about 28, 1 percentage of the bookings.
And the throughout fiscal year, 2020.
And wait long guns, and the pandemic has really impacted travel demand and across India.
And as part of fiscal year, 'twenty or 'twenty 1.
Moving on to our business segment.
And just and margin.
And $2 million reported figure recovery of 81, 5% and constant currency comps when compared to the same quarter a year ago.
And now what 47% quarter on quarter improvement over Q3.
For the full fiscal year and Mr Barton and probably the air ticketing business was.
$2 million on any political people think of the lemons attitude and fiscal year, 2020 and constant currency tops.
And just the margin.
And packaging business, we still have kind of pipelines and $6 million and careful which is a bulk.
Good point and supports and recovery and constant currency comps was simple.
Second quarter a year ago.
It's also a continued improvement of 42% on a quarter on quarter basis. The addition of either as a percentage of those bookings for this segment has remained stable over the last few quarters.
Okay.
More on it and year on year. This is due to the hired and excel Brandon.
And the bookings that has been leading the travel recovery so far.
For the full fiscal year, although sales.
Non packages interest and margin was $65 million or roughly 20% of fiscal year, 2020 and constantly getting pay downs.
That's not a bunch of it and business.
And margin stood at nearly $11 million and dividends paid.
More than 67% year on year, he's already got from kind of their jobs.
And was up nearly 22% over the previous quarter similar drug and it does business.
Perfect and adjacent.
And as a percentage of gross bookings remain steady.
Moving to yell at us and see more isn't clear sales was made available.
And that's down from operators and should call new designation of distribution and operations during dependent and recovery.
So the public school buses and the emphasis and margin stood at $22.9 million.
2% all from here trying to and constant currency dumps lastly.
Lastly, just on the margin.
That says Whatsapp and $2 million was it doesn't you don't get recovery up about 7% and gone since then.
And then try.
Try to 6% over the previous quarter.
Other income and just stared margin was 13.6 million.
Total fun box and all.
We have different margin part of the business during fiscal year 'twenty deep cost cutting systems.
Let me now share some details around the operating cost and profitability and the reported corridor and we continue to sharpen our focus on fixed cost discipline and optimizing marketing efforts and improve.
And we entered the comp mix across our lines of businesses.
And they can vary a bit.
Total expenses were low.
And it comprises of marketing and sales and promotional expenses.
And the previous quarters, we made as soon as they can be around the unemployment and lower expenses as it stood at 4.8% of gross bookings compared to 7.2% up we'd always look and did the same quarter last year.
On a quarter on quarter basis.
And there was a percentage of bookings did increase a bit but this wasn't language and group travel demand we witnessed during the last part of the reported quarter.
And that's a concern.
Although adjusted personnel and SG&A expenses came in at about $32 million.
Sales grew about $45 million and the same quarter last year and it does.
And multiple cost efficiency initiatives undertaken during the course of this year.
The Premier and <unk>.
And then and is very.
Expenses were lower by about 41% compared to the loss from Cisco.
Reflecting the full impact of fixed cost restructuring efforts during this pandemic and bacteria.
And so there's a couple of cost discipline efficiency gains and strong recovery momentum and most parts of the reported quarter.
And just sort of operating profit of $11 million and.
And couple that couldn't be $1 million.
And 1 day and improvement of $6 million, what was the previous quarter and.
And it just started cultivating developing margin expand with them, both pinpoint and Cooper se and.
And just takes hold up well.
Other non cash depreciation and amortization and expenses this quarter and just trade.
Operating cash flow stood at.
About $15.2 million compared to a loss of pulp and $7 million and to see.
And a year ago and up from a profit of about 9.5 and $5 million and previous.
It's part of the.
<unk> reported and go see them.
And part of it depends on how the fiscal year 'twenty 'twenty 1.
And we'll talk to you and just 2 and operating cash breakeven.
And then just hurt operating cash flow free.
It took us nearly $1 million.
Compared to just turn operating cash loss of about $200 million and the previous year.
And in February we Opportunistically and issue.
Zero coupon convertible senior notes.
And it took $2 million with a net cash flow through and I'm going to pull vignette and after factoring and transaction expenses and then.
And it doesn't launch insurance and positive quarterly adjusted operating cash flow of $15.2 million.
And as Andy and Curtis.
The first part and stood at.
And reported on 2 million.
Our cash and cash equivalents.
Additionally, we have deep and guarantee facilities.
And the million dollar.
And all of the credit facilities remain undrawn.
Before I hand over.
Because when you open it up for questions I'd like to offer some color on the different plans that they've been seeing.
In 2 days during the fiscal year and Q1.
And you have seen in the last reported quarters Susie and thank all of the nationwide Lockdown zone, we have been able to achieve gross recovery on a quarter on quarter basis across all lines of the type of horrible.
And the timing and scale of the second wave.
It's mostly from Europe, we have once again sales were travelling demand and big significantly impacted slightly by themselves low there.
And non mission by travel restriction and <unk>.
And if there's nothing that's the channel as well as and for safety concerns.
Good day demand for travel and services.
And this ongoing courtship.
And I hadn't really beyond our control, we have and continue to lean on our playbook of tight cost controls from last summer and and to maintain minimal cash burn, particularly during the highly impacted first quarter fiscal year <unk> approaching the Disney and Pixar and claims coming down to levels, where it was actually Cody.
Can resume all day, but.
I'd like to turn the call over to the operator for Q&A.
Operator please.
Thank you as a reminder to ask a question you'll need to press star 1 on your telephone to withdraw your question press the pound key and again Thats Star 1 to ask a question.
1 moment, while we compile the Q&A roster.
And again, that's star 1 to ask a question.
And I'm, not showing any questions and the cube.
1 moment.
We have a question from Ashwin Mehta with and its capital your line is open.
Yeah, Hi, Thanks for the Boston and Pete just.
1 question Mohit this quarter, you had the air ticketing day tranche and to substantially go dominate by 9%. So what other drivers of this are and do you think at least in the pediatric bad at lines and hospital Bush inventory that can be Boston.
D and elevation and given that you indicated that I didn't change gears and Chad driving that uptick.
Got it and you don't catch and think that.
The airlines and operating at a low load factor, if any and centralized in terms of driving demand and.
We have been large volume of later and all of the.
There has been and centralize isn't coming in from the airlines to the bulk of demand.
And on multiple factors and they reported I think.
Optically kind of and I'm, sorry, what the gross margin business.
And then just completely.
Completely and into the load factor.
Currently low and life, and a weird and mentioning and.
The load factors and steadily.
Bob and digital discovery.
And Kevin demand.
And the move the margins and kind of and I'll come back to the ship percentage levels.
Okay. Okay and is this is this largely a.
And he can give and can say make 90 day because of their dominant and sort of this is this is a cross state and that see that and know what he and his would have benefited because of this phenomenon.
I would kind of be a brittle.
Good.
Goodbye this quite a good month.
And that's been out saying this is probably a bit of both clearly.
I'll.
Probably see.
And the.
The devaluation kind up and not working much better.
And kind of an all on.
And then we now and if it's.
Coming through on <unk> sounds like myself and my people and therefore, we believe this will probably be and you can't get better than reported being made available to this subject.
Okay, Okay, and just 1 question in terms of you mentioned that.
You've seen a 35% and threes in terms of Dash IPC index.
And 3 on yacht and yacht large firms.
S RPC would be like knee deep dish.
And the pause that we have around and 1.5 million less seats and bus ticketing.
So as our D C would be how big in terms of industrial and oil and then 3 on that platform.
Yeah happy to take their dust free.
The overall size of the D C market by the day.
Is.
The largest private operator and bus market as well so the French laws and what's it going to be trying to highlight the benefits that doesn't happen during the pandemic. The difference was the private operators.
Coming online and had already come online and a big way and just sort of I'm, becoming more tech savvy and get them to be.
And also getting.
And thank them and their towards this and try to get good inventory online.
The steel transport undertakings, and we're taking time and for various reasons right. So not necessarily all of them, but absolutely up to speed in terms of gifts and bringing the entire inventory that they had and get on.
And the online platform, so what what happened during the pandemic and the lost or over several quarters now just over a year and.
As the Covid now.
And you know last March.
And that you know the offline distribution startup and dried up and then there was a clear desire.
And and lot of the efforts were putting on to bring that inventory online and so as it is learning stuff day, what inventory levels and you used to have it gone out and palm oil went up by 33%.
You know as compared to what we used to average pre COVID-19 levels, but in terms of just.
Seat. So it is pretty much the order value terms. It is the same size.
As the private operator bus market.
Okay, Okay, and just 1 last question.
So to me if that's at all and 51 million life day to day.
State Transacting users now what you mentioned was that GAAP booking and trained and booking is helping you expand to the backlog.
And back led by that.
So is there a divergence in terms of in terms of say the overlap as much noise between share hotel and air ticketing users was essentially a bus ticketing, CAD and <unk> and others and that at some point in time and.
And in terms of graduating the number of users, which I've got and TJ around $50.51 million.
Yes, you are right I'm sure and there is there is that's really the objective are good I mean, you know and we were trying to push the rail.
Transactions are all for that matter intercity cab between the 2 into 2 day cab and might have a relatively speaking more overlap and then real users and their tool. The real users. All 4 specifically you know and bookings second cloud bookings and not mess.
It's a lethal force plus all the air conditioner.
And you know the seats or are the customers, who are using those and sort of reservations.
And therefore, there too that we are seeing and.
And the benefit of on our platform.
And these initiatives are helping us and getting new users.
Because if you really see.
And we'll go to all of you can almost users are more than maybe about on and then $50 million today, but the overall travel E. Commerce users might be you know about 70 million plus minus.
And the idea is.
To basically expand and new users coming on our platform and this will certainly help beauty definitely.
We've seen and not necessarily.
Yes.
But also the fact that.
There has been a decent amount of cross sell happening to the other products over time as well.
Okay fair enough, thanks, a lot and all the best.
Thank you.
Thank you. Our next question comes from Contra Rytary and <unk> with Morgan Stanley. Your line is open.
Yeah, Hi from Jackson Pollock institution, and I have a couple of questions plus knee deep just wanted to get a little perspective on what do you think about the horizontal platforms and getting into the travel vertical we always hundreds more like our vertical business.
And not being able to do anything globally.
Is there any drag from horizontal and trying to scale up this part of the business or how to think about that.
Yeah, I got it no no. It's a good question and <unk>.
Is not a new market and we have seen horizontals trying to get into travel and the Boston as well and that we are also at some point of time powered some of the Horizontals is doing this.
I think.
And all you think total horizontal to want to do to get into more and more categories and sometimes the growth and the same guy degrees doesn't always keep pace with how fast you'd like to grow and therefore, you have the customers you'd like to sell them other things.
And it does what is during Dimensionalize 2 dimension of products, which is likely at all and ticketing. So horizontals have been successful and selling rail tickets are definitely read I think large and need there's an argument is such a price issue because it'll be 1 flow.
And there is effectively the only variable and the mine really is is there visibility on non U.
And so therefore, it and tickets have moved quite well, particularly discounts are offered at spectrum and platforms. In addition to that I think bus ticketing has seen some support but.
Less pantry and if we come to air tickets and it's even less.
2 dimensional product, it's really around price and timing.
But still I think people then have issues and concerns when you're buying something travel for COVID-19.
We have found through our research consistently is that the concerns are very different. So firstly when people are on the horizontal buying let's say something they need whether it's groceries or something so I mean durable et cetera, and are under the same frame of mind us travel when you're and travel it's a different frame of mind when youre looking for travel you want to go to and export and.
And then we'll start thinking about possibilities of changes possibilities of cancellation, specifically during such times of high flux and they definitely wanted to work with specialists, we have seen and Fortescue go to run more evolved products. So, let's say international air tickets and they're not succeeding at all on and demands on horizontal platforms.
Jeff.
Generally speaking and finally, if we talk about hotels and accommodations again, we have found that they haven't moved actually the needle when it comes to orders onto the platform. It's really the beryllium all for travel focused traveler dedicated players so I am not saying that they will not be any.
And definitely I think on the ticketing side of the business. We can expect to see that that is going to be another multiple funds and someone who is getting into this today and like flip cardboard box per trip is definitely going to invest and this line.
So avi or wouldn't be bothered all concerned not because we've seen this play out in the past not just from India, and even overseas and it hasn't really worked out as you get into the higher value added services.
Great.
If I share in Florida.
And you called out on the market share.
From a domestic air side and how it has changed during the course of the pandemic any color on that.
Yeah sure.
But I would like like we mentioned that we have been actually gaining you incrementally.
And B and announced last quarter same here are our share was about 27, 9%.
And in this reported quarter, we will be over and over 29% or so.
Got it and last question. Furthermore, hits and when you look at the customer and use them and cost.
Is it fair to say at this point in time, the large part of the path will be to drive repeat behavior and very limited box.
And to apply it and new customers and Worksite.
And I'll tell you, our tobacco and large part of the cost.
And new customer workloads to drive that each day.
And just trying to distinguish between the TARP.
Customer and disciplined path breaking it up into the acquisition of users of our society people.
Thank you.
Yes sure.
And let me just because they aren't diving deep.
And from the existing customer base.
Revenue for small business, you talked about but I think the Bruce for them and therefore clearly.
And that's part of it is is that a day towards that.
Other than kind of new customer attrition for the 2 day.
Thank you.
Thank you as a reminder, if you would like to ask a question press star 1 on your telephone.
Please stand by while we compile the Q&A roster.
I'm showing no other questions in the queue I'd like to turn the call back to management for any closing remarks.
And you Catherine thank.
Thank you to all our listeners today I hope you all stay safe and healthy and we look for.
Forward to speaking to all of your sales.
You may now disconnect.
Thanks, everyone.
Yeah.
And everyone.
This concludes today's conference call. Thank you for participating you may now disconnect.