Q1 2022 MakeMyTrip Ltd Earnings Call
<unk> 4200, a day in late May.
Recently, a central government has ordered another 600 million vaccine doses and is targeting to have 940 million plus of darts vaccinated by the end of this calendar year.
While social distancing masking and restrictions.
And during the second wave has helped to bring down new daily infections. We believe once more of the population once more of the population gets vaccinated life and travel and gradually return to normal as exemplified by the experience of countries with high vaccination rates.
While the debt.
On margins from the pandemic have been unprecedented it has helped accelerate the shift towards online shopping across India. During the last few quarters as E. Commerce users has reached over $250 million so far.
According to a report published by World pay F I S.
And the ecommerce industry has substantial room for further growth.
Disruption can reach over $110 billion by 2024.
So the travel industry has been significantly dented by the pandemic. Our long term view is that the inherent need of people to experience the world and travel Hasnt changed.
User being validated by the pent up demand seen within the leisure segment has.
Entrants are lifted.
We witnessed this demand after the first waves impact and it and unlikely to see a similar pattern play out as the recovery from the second wave continues to unfold.
It's fair to say that our operating results this past quarter fared far better than the same quarter, a year ago, when I and diet nation was supposed.
Strict on in April and May of 2020.
Helping to further the industry's hope for a faster recovery is clearly ongoing vaccinations sensible and targeted movement restrictions and higher locked down and fatigue.
What would drive travel demand going forward.
And anticipation of recovery post the second wave the ministry of civil.
Civil Aviation has also increased airlines sloan capacity to 65%, which hopefully should continue to ramp up as the demand situation and improves.
<unk> more than 90% of chain hotels and over 80% of top independent hotels are now fully open for bookings.
Lastly, during the second.
Second wave, we were fortunate enough to have and established pandemic playbook to help us weather through the current bout of vitus induced volatility with minimal operating cash flow and building a highly challenging operating environment and the reported quarter.
The good news is that we believe that the worst of the second wave maybe behind us evidenced by the improving.
Proving veeco and weak travel demand seen across our business since early July.
And the increase vaccination rates, we believe that domestic travel demand will continue to recover in the coming months and online users who used to make my trip Cooper brands to plan and books and much needed and desired post pandemic trips.
We're also encouraged to see how governments recently announced support for the travel industry by providing financial assistance to multiple tourism stakeholders and the formal Vulcan capital and personal loans for.
For the mall the European Union has also recently accepted the use of and then made vaccines for travel to 16 countries within the region.
As part of the Green Boss program.
And trees aligned fully vaccinated and travelers to forego quarantine requirements include France, Austria, Switzerland, Germany, Iceland and 11 more.
Anticipate over time more countries will once again open its borders to our travelers, which will help us gradually recover bookings.
And on travel and services.
With that I'd like to hand, the call over to Roger ish to share some more color on our fiscal first quarter.
And give you and Hello, everyone.
And I hope.
You you and your loved ones are safe and healthy during this ongoing pandemic.
And for our <unk> had already outlined.
The progression of the virus during much of Q1, I would like and just echo the fact that the.
Fortunately, there and back to our business this past quarter, while still very material was not nearly as severe when compared to the same quarter a year ago.
And this was due to the fact and the country and manage the been the massive second wave without resorting to a complete nationwide lockdown and adopted a more localized and nuanced abroad and this time around.
In fact, most forms of transport and hotel properties, while operating with greatly reduced service levels.
During the hardest hit month of May we're still available.
During much of the quarter, we continued to adapt to ever changing travel restrictions and requirements and stay focused on the projects with a long term view.
While managing operating costs tightly in the short term to minimize quarterly cash burn.
You can see while the boss sportswear business momentum was lost during Q1.
Performance compared quite favorably year on year.
We achieved more than 2.8 times, the volume and segment and our air ticketing business, nearly 11 times, the volumes and room nights, and our hotels and packages with NES and.
As Lee 10 times increase in volumes of tickets and our bus ticketing business. This performance was supported by essential travel continuing with restrictions, while leisure and business travel were most severely impacted also importantly, while this quarter's adjusted operating losses, what unavoidable given the dramatic and build.
And that level of demand due to the second wave and we were still able to restrict our cash losses and left and $5 million.
In the quarter by effectively managing our radio and Ddos.
During the quarter the business track similarly to the number of new cases recorded across the country with volume starting to.
And in New ICT declined late March into April followed by a steep drop off in May and then recovery beginning in late June. The good news is that we continue to see the recovery momentum continue into the first couple of weeks of July as daily flown passengers for our domestic air ticketing business reached occupancy.
40% of levels achieved in January of 2020, and nearly 30% of recovery on a book basis.
We are also seeing similar patterns of demand profile play out within our domestic hotels business.
With average daily.
Room nights bottoming out and the month of May followed by a sharp months and months recovery.
And in June and continuing into July with roughly 50% recovery to pre pandemic levels, so far and in Q2 non.
Not surprisingly our bus ticketing business also saw similar demand patterns and has also seen good recovery to nearly 35% of pre COVID-19 levels and July to date.
With gift loans.
<unk> and remaining controlled and vaccinations and increasing we are hopeful that a bit.
There is a third where it would be less Serbia and the day recovery trend seen so far and July well.
We continue now I would like to share some more color on the progress and trends by lines of business and the reported quarter.
Starting with the tailwind.
It is where we are pleased to see that over 70% of the room capacity within our domestic hotel network is open.
Our bookings at the end of the quarter. Furthermore, our hotel partners remain keen on driving high occupancies by offering attractive rates for customers.
Ongoing recovery since June has.
<unk> also been led by the premium segment over bells, which allowed us to grow our share with these partners to exceed even pre pandemic levels in July.
Across most major chain hotels, we are achieving greater volume and the first half of July versus the same period pre pandemic.
During the second wave our team remained focused on impact.
Actual projects to improve customer experience.
And our brands for example, we added greater contextualize issue within the P&L experience than before like adding relevant reviews for family travel we enriched.
Our points of interest databases to enable more defines us and searches and also improved.
Proved upon our free cancellations offering.
To respond to the needs of the or during the second wave.
For our alternative accommodation supply and we.
And also launched request to book, which will help us onboard more hosts by allowing them to interact with potential guests before agreeing to rental properties on our platform.
In addition to improving the experience for shoppers and suppliers as reported earlier, we added additional distribution channel to cater to different customer segments. My partner for me to be demand now has over 13000 partners onboard. Furthermore, our SME focused <unk> channel and the question.
Total corporate platform with very convenient and business travel booking solutions continue to expand with new accounts.
Now, let me share some of the highlights from our air ticketing business.
The market's recovery of attendance low now standard 36, 36% versus pre pandemic deep in January of 2020.
And improvement.
Just to kind of 15% market recovery level and me.
To highlight the sharp pace of recovery, we are seeing and the first 2 weeks of July the number of passengers non across our brands reached 40% of re pandemic levels up meaningfully from 18% and the Mi.
So.
Truck and up from 26.
<unk> profit and in June.
And if we compare the same day down our book basis, we hit nearly 49% of our pre pandemic daily segment and the past 2 weeks of July.
During Q1, our price teams also continue to adapt and roll out new products to help travelers navigate through the myriad of changes during the second wave.
<unk> example, we made changes to handle bookings per customers with non last name store brand growth and served up even greater personalization of offers on our listing page to drive greater convergence as international travel slowly opens up for Indian travelers, we also rolled out and destination adviser to help users search between multiple debt.
As actions that best suits their needs based on popularity price on <unk>.
Duration of light as we look forward and you've got requirements and.
In addition, we rolled out and maps view of all the countries embedded and with their respective COVID-19 requirements to further help users plan their trips better.
Now, let me move on to share and update.
On our bus ticketing business were roughly 50% plus of day inventories back online in July. So far we are also seeing roughly 30% and daily feed recovery within our business highlighting the strong recovery momentum that has continued since June the.
Good news is while the bus business was also impacted by the second wave.
And Asia truck demand and May we have seen.
Seen regions like and.
Western and northern.
And India recover faster than the south and the east as they will post hit with the second wave and also the first to see a reduction and the cases are previously announced program for total bus operators called Primal as continue.
We're getting good traction and has seen improved customer satisfaction scores amongst passengers traveling on these services. In addition, we rolled out red bus sake to help new operators on our platform with Onboarding and familiarizing themselves with the available online tools in order to help them drive greater occupancy and greater.
And those volumes.
Moving on to share a quick update on our other ground transportation business, which includes GAAP and train ticketing as a result of second wave the volume of cap rates and Q1 was about a quarter of pre pandemic levels and just about a third of pre pandemic average daily sales for air ticketing and the good news is the profitable.
<unk> has also seen very strong recovery and the first week of July versus deep endemic as we've seen nearly a recovery or to have a price per caps and over 3 quarters ago reported.
During the quarter, we launched our cash product within our corporate Michael Channel.
Adding and greater functionality like specific cabs and vendors.
But based on the type of corporate customers employ status and Egypt, low court approvals and volume usage.
Now allow me to share some trends seen in our corporate business, which was naturally severely impacted by the second wave and Q1 guidance.
<unk> dropped to 16% from language and 8% for Q2 on bookings terms versus.
Pre pandemic. The good news is exiting Q1 and into July we have seen sectors like pharma health care real estate and biotech companies covering to almost 100% of their pre COVID-19 industry level travel levels and other sectors like utilities and defense companies following close behind.
Overall in July and we've seen recovery and excess of 3% from my Best Hotel room nights, and nearly 100% recovery and Q2 deep <unk>.
And when compared to pre pandemic days, we are also anticipating air lease.
53% recovery of active accounts on our platform versus pre pandemic and expect nearly nearly a full recovery and but in Oregon.
Despite the severe impact of the second we are in Q1, we were successful and acquiring 60, new midsized and large accounts.
And and about $2.70 board SME accounts and successfully renewed.
Our annual agreements with all large enterprises that were up for renewal and tier 1.
With that.
And would like to hand, the call over to Mohit to share more color on our financial results and Q1.
Thank you Krish and I hope all our listeners are staying safe and healthy.
And as a reported quarter voted by the second degree and remove the pandemic, which entered the business recovery material over the last fiscal year the focus on.
Amazing operational cash burn during the quarter real strength to grow year on year over Q1 of last year, which saw the first phase of the pandemic.
And as a result quarterly adjusted operating losses, and there has been $9 million.
Compared with losses of over $21 million.
During Q1 of last year.
And.
Noncash depreciation and amortization expenses.
Cash operating losses were less than $5 million during the quarter compared to losses of over $60 million and Q1 of last year.
We're encouraged and the business. We currently seem to find and July mission remains focused on operating cost optimized.
Adding bearish and particularly until the time that the industry fully recovers from the pandemic.
During the reported quarter, our gross bookings.
<unk> between them and put 2% year on year and constant currency terms, but due to the second wave and was down by over 60% on a quarter on quarter basis.
Optimize moving on to our business segments.
Integrating and different margins stood at $19.2 million, representing an increase of almost fernanda and put them and <unk>. The level achieved in the same quarter, a year ago, but lower by half on a quarter on quarter basis on constant currency terms and <unk>.
Strong market share.
And the domestic air ticketing business continued to help US and is this part of the business has shown more resilience compared to other clearances and services, particularly in the period.
And the hit by the pandemic base.
Martin.
And packages business and stood at $12.3 million in Q1, which is nearly.
10 times EBITDA adjusted margin and the same quarter, a year ago, but lower by nearly 2 third on a quarter on quarter basis, and constant currency terms and 4.
And our bus ticketing business and different margin stood at over $3.9 million and represented nearly 12 times improvement from the year ago levels of Q1 last.
<unk> bye.
<unk> down nearly $2 as compared to the peers reported quarter and constant currency comps lastly.
And lastly, the adjusted margin and other businesses.
Was $2.5 million, representing a year on year improvement.
Recovery of nearly 2.2 times.
And just less than half the level of tier and the reported quarter.
Sales in constant currency terms.
Let me now shares and remains around operating cost and and profitability during the reported quarter, where we continue to sharply focus on fixed cost discipline and optimizing marketing effort and we split that.
And bill.
I'll begin by addressing our variable expenses, which largely comprises.
Marketing and sales promotions before entering the fifth Street.
First quarter authorizing confirmed new cases of COVID-19, we quickly scaled down our non.
Marketing campaigns.
And were intended to stimulate demand during the peak summer travel season based on recovery seen in the previous few quarters as a result.
These expenses could be curtailed and stood at about 2% of gross booking and improvement even from the previous reported quarter. The spending of $4.8 plus at this point on gross bookings and.
And for our fixed costs were a district personnel <unk> expenses came in at about $28 million.
Compared to our 30.
<unk> zone $3 million.
And the previous quarter.
This was largely achieved by flexing our variable outsourcing expenses.
And to reflect lower customer servicing volume during Q1.
And lastly, finally, a broker and tight cost management and being cautious of potential cultivate and we believe with <unk>.
And there is the level of explanation and the medical and trust secure creator who is the learnings from the second wave. We are past the voice of the pandemic and headed to a better time for the travel industry and the forthcoming quarters with that I'd like to turn the call back to John.
Thanks, low head and audience appeal.
Any questions for the management team. Please use the raise your hand button and we will commence with Q&A.
You have the first question comes from and Gaurav <unk> from Morgan Stanley caught up please on mute yourself.
Ask your questions.
Hi, My argument.
Got it.
Hi, mature and a tough and challenging quarter and so my first question is on actually the cash.
Because if I look at the last year same quarter free cash flow performance was very very differing and there was a huge working capital release and there was a positive operating cash flow, but this quarter, we have seen a working capital locking of around $24.25 million and the operating cash flow is quite negative and I'm also just trying to understand what really changed.
And how should we contextualize this quarter and.
Versus the last year's importers, and the pandemic and take us into <unk>.
Country.
Sure got it and maybe I can take that and you know.
If you see last quarter pretty much right until the end of the quarter or the business, we're completely down and.
And recovery pretty much started on <unk>.
And from the second quarter onward.
He says and.
June was a comparatively better quarter.
Within the reported income per month within the reported quarter and their whole business recovery and started happening to some extent from jewelry sales and therefore and that many of sources and not really like to like kind of in quarter and.
And through the pandemic there have been significant amount Aquino.
Changes to the working capital cycle.
And depending upon the kind of and a recovery or setback that we have seen on the business day, so that will be literally difficult comparative to me between this quarter versus the same quarter a year ago.
Okay and second question is on the competitive intensity and each of the segments any color on what's changed in the last couple of months are mimicking the stable any color on that will be very helpful bolt on especially on the air and hotel and packages segment.
Yes.
<unk> is a good question.
Right and take that.
But I think it'll be fair to say that now.
Nothing.
Significant here to call out, which is which is materially different from what it was and the last quarter or and the last few months.
And generally a pretty much the market remains the same from auto.
And maybe how do we continue to start up incrementally keep gaining our market share on the on the domestic side.
While there could be.
Startup and other players who are also trying to or maybe.
A little bit more aggressive on discounting et cetera, but from our point of view, we are sort of holding.
And 2 are improving our market share.
And yeah. So in terms of debt the old Otas. If you. If you will I mean as you know other turtles had been acquired by <unk>.
Flip cart, we haven't really seen any action on that front from their side as well. So you know all and all.
As.
Holding on Air segment is concerned no real change.
Good quarter and nutrition has been and.
And <unk> confirmed that again.
No significant change at all other global Otas continue to be given.
Given the fact, there is no international travel that has opened up so continue to be.
Operating at the same sort of level, so no massive action and charter there, they're all focused on their respective markets as well.
And and and in Indian market.
From an intermediary standpoint.
Yes.
Clearly, leading the back out there as well so.
And again.
It's a very stable situation, if you will from a competitive landscape standpoint.
And last question from me on the regulation side any color on the.
Recent draft regulations, which came on from consumer Affairs Ministry and how to think about.
From a business on so there has been some news flow around and the CCI are putting in obligation around putting the.
And on budget.
Our players back and apply for onshore under English and side any color will be helpful.
So maybe on the draft rules first.
And then and debt.
And empowered Rob can give all other.
Sorry, I've got together.
And you much every industry player in the ecommerce space and.
And we offered other presentations to various industry forums that center feedback and input stood up.
And to the Ministry.
And I and just basically.
And that was explaining the rationale behind all the inputs and the recommendations and demand and I think it'd be fair to say.
And typically in our draft rule always and we will find where there would be gaps.
And and and and the good news is that it is a general industry and being consulted right now and.
And and.
<unk> debt, we've also brought together and given our representation back so let's see how it goes it's going to be any greater profit.
But we are very actively engaged on now.
And in terms of our own participation in terms of this term.
Along with the industry other industry players and the programs and going back to them.
And the banking industry and presenting that.
We will keep I guess, everyone. Both here and how things are all debt.
And as far as Mike do you want to take that CCI question.
Sure.
Mercury sales division from who.
Yeah, and there are some news flow around and CCI and putting and obligation to potently.
No Magee from 10.
Operators back onto black from Richmond, non debt early and so any color on that and that has changed anything on our business for us and Shaw.
And if you said actually in a kind of recently and longer and commission acknowledged the consent order and universe and to the consent order is that all parties have been central to Canada.
Currently.
Both together and therefore debt position when.
<unk> total basis rich and order.
And really seeing Pos and some other genes from non beyond the platform can be kind of in and initiated on needs from initiatives and here on that process.
And hopefully, we can intervene and share more and the process kind of revenue growth.
And as took elimination, but here on it and like I said this is a consent order and therefore it is coming will be active.
And make better business.
Thank you.
And next question comes from Ashwin Mehta of and debt.
And.
And all of that.
Yeah, Hi can you hear me.
Yes, yes.
Congrats and good set of numbers.
1 question in terms of and other net revenue margins this quarter and what drove that.
Increases in our air and Air and East Africa.
Because hotels it seems is still being driven by the more premium hotels.
And secondly, if you can give some indication in terms of the sustainability and corporate for that.
Sure, maybe I'll take that and him.
And as you can imagine with other quarter.
No.
And you hit weighted second lever, we plan to make and we have seen when the when the market kind of Reno day.
Mine operating is extremely low.
And usually buying suppliers kind of renewable and to put in.
A bit more in terms of margins declined mainly really and try and get a great volume and this is a really volume.
Openness and pay mode during the reported quarter.
And we have been calling out and the POS we believe our margins and lastly, kind of a new stable.
And can move and historically, you could always have and slate increases or decreases depending upon the <unk>.
The specific quarter.
Overall.
Light vehicle about.
Good day by day, what kind of.
Coming in and are more around the 17.16, 80% levels and the last few quarters, but it was also because there was a significant mix of.
Premium, which we're getting store that has chartered correcting course correcting over a period of time and would.
Not be surprised if particularly on the hotel side and other margins continued to remain strong.
More on the highest rate of 70 to the 20% range.
Rather than necessarily being on the low website, so I think.
Little bit of tactical for the quarter and also to some extent a part of the year.
Kind of gradually.
Uhm.
Fair enough and just 1 more if I look at the domestic passenger data and given where DTC and there was a 53% sequential decline.
But in our case, there's almost a 62% decline in <unk>.
The <unk> segment.
So anything in terms of the high end.
Intensity on the air side, because there are quite a few other players with Jeff and <unk>.
In terms of debt exposures since from.
And for people to get a sense in terms of that because some of them are playing on that.
Convenience fee and even.
<unk> seems to have launched something with the lowest I'm curious and maybe I can see and Dino and.
And usually.
And the GAAP kind of likely comes in on a contract and Mariner that the data gets reported.
This is theory data would be kind of more based on facts travelers during the period.
And our numbers will be more based on <unk> books during because during the period and they publish and really an overlap on a little bit of AR and.
And difference between the 2.6 overall, they've really kind of keep giving us our share our market share and the domestic market and Legalisation corridor.
And their market share has remained strong and driven kind of early days and so on it and kind of improving over the year.
And so therefore, it's not that we've lost share and this might be more.
GAAP and the miners and the data is kind of core node.
The <unk> business and the manner in which we reported which is based on bookings.
Fair enough and the other part in terms of the cockpit and intensity.
And and.
And the impacts of any changes that you're seeing and in terms of strategy from say a clear trip above it and now in acquired by bio <unk>.
So I shouldn't maybe I can take that nothing specific from a clear.
And yet.
The same what we what we've been seeing it and the last few months are all what we saw and the last quarter.
And even the other players again.
And I'll get the similar nature I mean, there is no real.
Change and maintenance being either going upward.
Going down there is some.
Sure.
Discounting that is happening and this segment and the market.
And that has been continuing for a while.
Let's see how it sort of noise.
At some point.
As the as the market gets a little bit more consolidated.
And it should get last night.
And I'm going forward.
Thanks, Roger and thanks, Mike and the best for the future partners.
Great.
Next question comes from Richard <unk> from Nomura Securities. Mr. <unk> go ahead with your questions.
Hi, Hi, guys. Thank you for taking my question, congrats and a decent quarter yet.
So I've got 2 questions..1 I think we've seen some of the.
And discounting come back again and.
So I just wanted to understand your views and largely driven by the hotels and the partners are auto rerolls equally participating to that extent and.
How should we think of profitability.
The next quarter or onwards, our debt.
First and second.
If you could just.
And provide a little more color on the corporate segment, what are we essentially trying to do there and how many corporates or Smes that we on boarded.
Because that's 1 area, where I think the competition could comparatively much lower right, whereas from a linearity is and at focusing and what are we adding in terms of value.
Which can sort of help us gain significant market share and.
And the once the recovery come through thank you.
Yeah.
Yeah.
So let me just.
Let me take both of them are reached and both are good questions.
So the first 1 the answer to your question and your observation is that yes.
Dominant and becoming from the partners.
And your.
And we exist from Ms Charlotte.
And you would recall, where we had called it out earlier and as well. So there's got up there now and the features that are available for the partners for them to be able to decided on the on the go.
And depending upon how much do they won't do waters air pocket area.
They want to drive the yield.
From their point of view other occupancy from their point of view that keep coming up and with the different sort of promotions different sort of offers.
And depending upon how they see the demand moving yes, we grew.
And definitely provide them lot of the intelligent and Florida market and they'll be but in terms of other demand is moving and the variability.
Will it be all or the volatility of other all of the demand based on different price points et cetera.
And so therefore, a large part of the debt.
The sales promotion and there'll be opex et cetera that you would see would be driven by the partners.
And leveraging our large bump of Shaw.
And therefore, we.
<unk> really seen and all our.
Our own sort of margin getting diluted.
Because of debt and I think you should also keep in mind that during the third quarter.
As we were disappointing who the debt.
And be able to the pandemic.
The focus is lot more on occupancy and and getting them and there is definitely more.
We have a startup and desire to invest more money into the market to just.
Capture the and they've been demand sort of there and the market. So I guess, we have been working very closely with other partners to explore that we.
And just to get them the best of the Rois.
ROI of the investment at the end of making monarch platform.
So that's the kind of near that been happening on the on the retail side.
And.
And now coming to the corporate a second question on the corporate side. There's a really good question again and we've been we've been focusing we also believe by the way that you know that's a very important.
We had weird spot and this you know 2.2 and a half years ago. When you started making investing and we've been.
And you see improving the product experience and factor both in terms of just.
And window, and just improving and enhancing the experience from a booker standpoint, whether it's the volcker rule and the actual employee travel nurse orders and more.
And so.
It will be a sustained other R&M and auto central broker if you will.
And in a in a particular organization and all.
Looking at what their specific needs would be in terms of.
Making the.
The old booking and the post sales experience very very seamless and frictionless for them and.
1 second and the second site, we've been expanding the product portfolio. So.
And as I, just called out and the index.
And the script early on and that we have now and it got started because well you know besides we've got flight, we've got hotels, both domestic and international flights for domestic and international and we've now and it cabs and.
And benign and.
The rail and the other products are and the pipeline so.
And so we'll keep adding more and more products. So that it becomes almost like a 1 stop shop wherever he is.
And witness traveler part of particular organization, whether it's a small and medium enterprises.
Orders and large corporate which is being catered to.
And another a platform called the western.
And so we'll continue to keep sort of working on and that we do believe that it.
It will be and investing space for us to be able to gain market share and that.
And the last quarter, we acquired close to about 1 and the 360.
Accounts, which are like small medium enterprises accounts mid size accounts, including.
And it's that mid size accounts and and good about 60 odd.
Large and the upper end of the mid size accounts as well.
And every quarter.
Even in the previous quarter, so similar sort of trend off acquisition has been happening as well so and lot more focus on acquiring.
As the business.
And this has been our the business travel was there was a sort of quiet and all.
All these like look like and the last 3.4 quarters and focus was to acquire other customers as much as possible and.
And the product capability.
And so clearly we believe that all of these investments are going to do.
Okay.
You know rich dividends and in the quarters to come.
We should maybe just to add onto and home Butler and he has already called on and.
And you heard recently from some other part of your question.
Oh things, if you look kind of no.
The app called out and actually on.
On a quarter on quarter basis.
Marketing and promotional expenses have actually come down as a percentage of gross bookings compared to vertical 4.8% and the biggest quarter. These expenses actually installed and about 4.4%.
And in the current quarter, we just reported from give not really began to decline significantly promoting and language mentioned.
And that possibly will only go up as these type of things.
And coming through not necessarily at a time when you know.
And the recovery is actually kind of getting bad debt. So just wanted to kind of and all that out.
And secondly.
We do see despite the significant impact on business recovery.
And had gone.
And to round up and all.
Hi, 50, then even if you see some of the are getting months of the of the previously reported quarterly and kind of bottoming Tau and looked like 16, and 17 and themselves.
Domestic recovery.
This quarter is pretty much seen recovery on me and the high teens and it comes to volume and.
And despite kind of an all day.
And the significant rent on volume.
And history of cash burn was pretty.
Pretty much under $5 million, which means and as these tanker and does it all seemed simple module business, because we come back and we should hopefully we kind of and I'll back on the on the bar to productivity and this quarter, it's probably more like an aberration because of this and live.
And secondly.
Understood that was helpful. The other is just 1 follow up on that question, how many Smes and large accounts, we would renew would've and noted by now and why.
What is the market price like that we would aim to get debt.
Well.
And good question again, so maybe maybe I'll just follow up with you.
The actual number.
But.
And Jonathan would you have that handy video and music.
Capital ratios for <unk>.
And <unk> kind of a large corporate enterprise or about 100 account onboard.
So far and for our <unk> program with <unk> thousand and key accounts close to 5000 small medium enterprises already logged in and for you and much smaller business about 10000 already on boarded.
Thank you.
And our last question comes from 8 am all decide from lattice work investments Amo. Please go ahead and ask your question.
Yeah.
I'm, arguing on mute.
Okay.
Yeah.
Our model year <unk>.
And then on yogurt.
I'm all might want to use the chat function.
Okay.
And maybe you did anybody else and the Q you could kind of low.
And have them up.
And.
And our next question comes from the City Richard Gene.
Yes.
Yeah Yeah.
Hi can you hear me okay.
Yes, yes.
So you got my questions I have 2 questions.
1 is on the domestic air travel business could.
Could you give a sense of what you're carrying.
And our market share would be I know last quarter, you mentioned a number of.
Mismatches between <unk> reported and given the small and scale of Dore on site visits debt it might be a little color, but just a sense on what you and market share right now would be the domestic aviation business.
And my second question is.
You know just looking at total be other competition and now you have E. S piece that is least filings recently and.
And are looking to maybe.
Get more aggressive and the market goes foundries, how do you look low.
The competitive dynamics of piece and the a space going forward.
From that perspective.
Sure.
Richard maybe I can day Baird.
You know our market share.
Is close to about 30%.
Of the total market.
Right now and and maybe I can just take this opportunity to clarify.
The earlier question.
Performance from our side as well and.
Terms of nonprofit hull market non percentages have been growing because we book.
A good track of those numbers as well so as I see those numbers so.
For the month of June for example, the non percentages market was about 23% recovery about $95 million.
Non passengers and July post reports for example, it was about 36% and then subsequently.
And the.
All subsequent weeks of July and has only been increasing and debt gone to about 50% of <unk>, 5% as well and the last few day.
And average daily departures has also been.
And sort of increasing.
Month on month from May onwards.
2 of 29% June 33% and July 1 to 4 was about 44%.
And and our recovery.
And the loan percentage.
Actually has been ahead of the market the market was doing it.
Recovery was at 36% on zone, and we were at 41% like like let's say for the first 4 days of July.
And similarly for June.
And while market, where there are 23% and Europe, 26%. So just.
Just to clarify that a little bit more and this is more like an absolute like for like comparison. So that there is no confusion and I've already shared the market share number broadly as well.
Yeah and then.
The second part of my question is.
More than 1.
The company.
Competition in the air space, specifically I guess.
And Vince <unk> and recent guidance range, how do you see the overall competitive dynamic evolving from here I.
I guess.
And.
Do you see bookings and are making more active interest and the domestic business I know bookings.
And as dominant and India, inbound, but do you see them, making them more.
Concerted effort and the domestic.
Hotel market as well.
Thank you.
Maybe I'll take that.
So our visit though I think through the pandemic, what we have noticed and there's also been.
To us are with us by some of our partners is that most of the multinationals have actually not been active a large part of their businesses and bone so within bound completely drying up in fact, even till today.
Nobody and no foreign nuc, and actually coming back to India, even if you're a double vaccinated, which.
And Sharon anomaly and itself, but since we can go to various countries now but.
But because of that I think the business has been muted the business development efforts from the ground have been muted and.
And not to say that they're.
And they're not doing anything on domestic we do track those numbers carefully and there obviously.
You know.
Which is much smaller than they used to be and a much smaller part because there's no inbound as well and them. So we have taken that opportunity actually to double down on.
Because we felt firstly only domestic travel was coming back.
It is squarely a 4 day O pause because the desperate need for our sales partners because they.
Although some much higher than intermediaries and I think those partners who were willing to come forward.
Take some calculated risk open up their hotels, either entirely or partially we were able to work closely with them and bring forward deals, which I think makes the market requirement.
And I would like to stretch study even beyond.
Beyond hotels.
Hotels itself. So if you look at alternate accommodation thats been 1 other silver linings off.
Ah the Covid cloud, where we have found that a lot of people who pay their 2 would not have looked at alternate accommodation vilas et cetera.
And they were only hotel customers are now <unk>.
And that this was probably the safest option and started looking at such opportunities and therefore, we went and doubled down and contracted and many more we are now close to getting close to 30000 contracted and.
Dependent properties.
So that has been I think.
Partially strategic partially opportunistic, but I think it's worked.
Quite well because notwithstanding established ourselves in this space also so yeah. That's that's what I think we can share on that.
Question.
Great. Thanks, and just 1 final question from my side.
If you can give me on the AG business and under.
And our trip money business and how you look.
Decade and the.
And this guidance fiscal year fiscal 'twenty 2.
What do you expect.
From those verticals, thank you and.
Sure.
And we did.
While it's actually quite early days for boards because.
And just in the last quarter or 2 and maybe sort of rolled out both.
And meaningful traction if you will.
But it is definitely very promising.
From a long term point of view, so right now and just.
And just from a product and an enhancement standpoint on the on the Tech platform. The third party and with this new platform. We recently.
Enhance.
And then as we do our sponsored listings as well.
And so right now the focus has been just a me too.
Charter and the platform is.
And as more comprehensive in terms of capability.
But.
Having said that we've already started though.
And doing the dollar departments weighted with.
Pick a better as well.
In terms of numbers I think and the subsequent quarters when it becomes more meaningful and significant probably will be able to.
And we'll we'll make more sense to give you more color on that is just a very humble beginning right now, but it definitely has a lot more promise now express script money is concerned.
It's maintained.
Okay.
Sort of the status of the platform right now.
And again the focus there is to add more products and you recently about and more insurance card products. We are also now, bringing and credit card and we potentially would want to bring in like the other.
And <unk>.
And.
Right.
Power and exchanges.
Much before and maybe no international travel opens up.
And and and and the way we are looking at that our platform is that you know violet and continue to keep.
Offering the travel.
And our travel complementary products, but it could also be and independent.
And sort of platform just adding the more.
And all other financial services sort of product as well.
And again, we are thinking a lot more long term these are clearly.
Platforms, where we have maybe the more long term debt.
And right now is the time to invest and the capabilities.
And in guidance to come and definitely get more.
And sort of meaningful numbers in terms of <unk>.
Transactions are the revenues coming in from debt and added as they become.
We're chatting and he will be will definitely come back and show them.
Okay. Thank.
Really it's those are my questions.
Appreciate it thank you.
Thanks Richard.
Well. Thank you everybody for joining our call today, our first webinar and if you have any questions for us where the team please feel free to reach out directly and.
And I wish you all a very nice day you may now disconnect. Thank you.
Thank you Jerry.
And then.