Q3 2022 MakeMyTrip Ltd Earnings Call
Okay.
Great.
Hello, everyone.
These are lingering now a nice dinoto undergoing over to Liberty piece.
Thank you Richie.
Hello, everyone I'm with Cologuard quite fixated Mr Relations at make my trip limited and welcome to our fiscal year 'twenty two with third quarter earnings have been on today's event will be hosted by deep Kalra, Our company's founder and group executive Chairman joining him is <unk> <unk> our cofounder.
And group, Chief Executive Officer, and Mohit <unk>, Our group Chief Financial Officer.
As a reminder.
This life event is being recorded.
And.
Recorded by the company and will be made available.
And will be made available for replay on our IR website shortly after.
After todays session at the end of this these debated amongst new lots will be boosting our Q&A session.
Furthermore, certain.
Statements made during today's events may be considered.
Forward looking statements.
Statements within the meaning of Safe Harbor provision of U S. Private Securities Litigation Reform Act of 1995.
These statements are not guarantees of future performance are subject to inherent uncertainties and actual results may differ materially.
Any forward looking information really do you think this event speaks only as of this date and company undertakes no obligation to update the information to reflect the gene circumstances.
Additional information concerning these statements are contained in the risk factors and forward looking statements section of the company's annual report on form 20-F filed with the SEC on July 30 billion Dirty bomb copies of these filings are available from the SEC or from companies and Mr. Deletions dip.
With that I would like to now turn the corner with the deep overdue.
Thank you Rocco welcome everybody to our third quarter earnings call of fiscal 2022.
I sincerely hope everyone joining us today is keeping safe and healthy.
Let me start by giving a quick update on the Covid situation in the country.
India like other countries in the world is going through and other such driven by the omicron variant.
This leaves started in December 2021, and while the positivity rate continues to remain high India's vaccination coverage gets open assurance that the severity of infection. This time around will remain low.
It is definitely reassuring to see that the countries cumulative vaccination coverage has crossed 1.6 billion doses with over 72% of Indesit adult population being fully vaccinated.
152% of children in the 15 to 18 years Ord age group have also been inoculated with the first dose of the vaccine.
Going by predictions of health experts, India should soon start seeing decline in the number of daily new infections.
Travel in India much like other countries also slowed down with the onset of the Omicron Babes I'll beat with relatively lower travel restrictions than the previous fades.
As the severity remains low the country continued to see domestic travel is being undertaken in the formal fifth central travel Hartwig question.
Leisure travel has understandably taken a backseat temporarily that said overall travel sentiment remains moderately high with people waiting to hit the road again as the situation begins to ease out in the coming months.
During the reported third quarter financial year 2022, domestic traveled witnessed strong recovery riding on the back of pent up demand further fueled by festival travel.
And winter holiday season, Unfortunately, as omicron began to spread in December we saw demand for leisure travel sliding down towards the end of the quarter, although broad travel sentiment remained considerably high during the quarter.
As a result, the good news coming out from the reported quarter is that we recorded our best adjusted operating profit during the pandemic.
The past two years have been tough, but the silver lining is that similar to global trends, India has gained momentum and becoming a truly digital economy with significant improvement in online buying behavior.
Studies indicate that ecommerce that India has seen tremendous growth across the country. During the last two years is heartening to note the tier two and three cities in the country are now transacting online more than ever.
And tools by this new base of Internet users.
And increasing online penetration, we are focusing on growing the penetration of online travel bookings by making the end to end process of planning and booking travel simple.
And convenient for buyers across deal 123, and the hinterland.
This is one area, where I believe we have made tremendous progress in the last quarter from launching the platform in Hindi language, India's largest keep native language to supporting regional air connectivity by barring owed on autos regional flights on our platform and the governments as save a portal to introducing real ticket bookings.
Elvis on Greg bus with IR C D C and more.
We are committed to bringing more Indians to make their first ever traveled booking online. We're also aggressively ramping up our efforts to better travel products that are more inclusive and diverse I must mention that along the journey of building products. They're all we're also focusing on personalizing the experience of each user to make the booking experience more.
A relevant and meaningful across all our platforms.
With the third we are expected to subside soon we believe 2022 awards better prospects for the entire travel and tourism industry. We've seen strong recovery of demand following the previous waves, giving us adequate optimism for a strong recovery post the omicron waves as well.
We also believe that with our recent investments in new platforms like My bus My partner hosted App feature of our Homestay segment, and others were well poised to tap into new demand segments. My optimism is further fueled by the latest developments in the U S UK and other parts of Europe , where restrictions have begun to gradually ease.
We believe that the recovery in travel demand post the third wave will be led by domestic travel a resumption of scheduled international flights has been postponed till February 22, we can expect graded opening up of destinations for NIM travelers in the next fiscal year.
In the previous quarter, while only few international destinations. We're open for fully vaccinated and travelers, we observed a steady increase in bookings to destinations, including the Maldives in Dubai on our platform.
I'm pleased to also share that recently make my trip was recognized as the only Indian travel company to be honored with the top producer award at travel trade in the Maldives.
I would also like to briefly talk about our social.
Corporate social responsibility or CSR initiatives, especially the ones that focus on taking care of those impacted due to the ongoing health crisis as auto make mitral Foundation, we have launched a scholarship support program, our theater Hobart bit a hole for underprivileged students, who unfortunately lost their parents due to COVID-19 .
We're also closely working with the government of India Ministry of tourism and other not for profit organizations, such as startup trusts to boost community based shut tourism and extent support and scaling up travel infrastructure across the country.
With that I would request Rajiv to share highlights from the last quarter.
Thank you Lee and Hello, everyone.
As Dave mentioned, India like many other countries also but language grateful both hardware more tactfully wireless wireless laid into highly contagious it is less severe.
I inherited a vaccination and less hospitalization there is a hope of dismay of subsiding soon.
Wireless entrant travel as engineering, even in the middle of this vein are growth oriented performance in the reported quarter is a strong indicator that as the situation eases endeavour jump back to traveling for the leisure trips.
We continue to stay watchful of the situation on a daily basis and are managing the business accordingly.
Now, let me share some highlights from the previous quarter.
I'm happy to share that we reported one of the most profitable quarters over the years.
Linked to strong business growth coming in from pent up demand on gross bookings grew 95, 1% over the same quarter in previous year and 58.5% over Q2 in constant currency terms.
An audio business, we continued to stay on and upward recovery trajectory. Following the momentum picked up during July to September quarter last year. The good news is that we have managed to recover faster than the market in our domestic air ticketing business.
I think 68% year on year growth in passengers flown.
Festive travel season for the propane demand with November of equal a recording highest daily segments during the pandemic.
Huge surge in demand came from domestic leisure destination that accounted for 94% increase in volume of tickets as compared to the same quarter last year on the other hand international travel demand recovery continued to be slow overall with the exceptions of Maldives underway weird risotto with growth.
On the broader site relaunch make mitra bundles, our customer cost unfair option that allows customer customer store bundle various convenience based offerings, such as Bureau cancellation travel insurance airport means and gags and one booking.
Moving on to our hotels and packages business now.
Our domestic hotel in Birkenhead, Vanessa robust quarter on quarter and year on year growth during the third quarter, we recorded year on year growth of about hundred and 25% in constant currency terms and gross bookings. We also recorded highest check ins during the pandemic for the Christmas weekend, although the bookings had started to dip.
By the by the time as the Toyota vivo setting while B to C platform showed solid recovery growth was also partly aided by a corporate platforms, namely My base question travel and my partner B to B platform.
I shared earlier on my partner platform and still delivered on its promise all in poverty travel agent partners with quick and easy access to our wide range of inventory across four television flight and more product in future.
We have now ramped up to currently about 22000, plus registered travel agents on my partner and we are adding around 1500.
Agents every month.
On various segments of hotels, while premium hotels continued to lead recovery.
Glad to share that budget to mid segment orders have also started to see pick up in demand leading to inclusive recoupment.
Recoupment of oil price segments over there this quarter.
On our homestead segments bookings for realized managed to surpass pre pandemic levels.
On the product side, we continue to strengthen our offerings for the retail segment, we have scaled up packages across 450, plus day minimum barrels and are beginning to see great traction on board supplier as well as consumer side.
We have further refined the user generated content and content collection flows mobile site and post inflows ongoing vivo, we introduced barely still deals to make booking through the platform more value driven and rewarded in.
In Q3, we also introduced assurance driven products to help make travel planning worry free and Murdo on going uncertainty. These included zero cancellation fee on any last minute and last minute cancellations and more.
On our home state product I'm excited to share that we recently launched the beta version of our in App horse feature or does it become a host.
The feature allows accommodation owners to list their realized apartments and other independent properties on the platform in just a few clicks we're already seeing early wins hill since its soft launch in Berlin, We continue to stay focused on enhancing our products will further improve the booking experience. We've also ramped.
Homestead inventory further and closed the quarter with about 30000 properties recording a 66% increase in supplier with the pandemic.
On the holiday packages side of the business, we saw two X bookings in domestic packages sold when compared with same quarter in 2019.
On the other side, while bookings for internationally, that's been destinations remain muted Maldives that was open for vaccinated travelers registered 300% growth over same quarter during peak overtime on our platform.
Now I would like to share a bit on our bus ticketing business led by Red with Brian . This business has been has seen a significant quarter on quarter growth of 77% and gross booking values during the quarter as the festive season added to the travel demand along with well timed fuel price reductions we saw.
93% private supply and 102% regional Transport Corporation operators supply coming back online apart from bringing back supply our focus remained on driving both night vision and customization on booking experience on the platform such as introduction Onboarding point dropping.
Point.
A feature we also introduced customized nudges perforation triggers based on barometers, such as on time performance and readings from similar cohort of travelers to help customers choose the right bus service for the mall at Braemar program for top rated seller is taking shape nicely.
We now have close to 1800 Braemar branded buses across the length and breadth of the country and this is already helping build good top of the mind of aetna's. It is encouraging to note that about 85% of customized Udoka primary service standard. Their next trip would also be on our prime of us.
We have launched a number of new initiatives to differentiate a primary experience in.
Including an ongoing primary lounge pilot at one of the popular bus boarding wind in Bangalore.
I'm also happy to share some exciting news coming from overall ground transport business, while make my trip and going mobile platforms have been offering real booking services part of items. We have now launched a red rail on a robust web platform and have plans to have a red rail ads soon as well.
Prorate rail, we aim to leverage the customer overlap between bus travel bus bus travellers on Red bus.
Also happened to be a part of India's large screen passenger base.
And had that initiative. It also kept our ground transport being busy during this theater and departed pilot launch of raid on network of Gab franchisees across the country that operate under rides umbrella.
With superior technology at the backend it bothers, all aspects of booking fulfillment and travel and will help improve the reliability of supply.
Currently we are running a pilot in Delhi NCR.
And Bangalore and plan to scale this up and other cities in future.
With these new initiatives, we hope to build on the strong brand and user base of Red bus to create leadership positions in ground transport categories other than buses in future.
Moving on to our corporate and SME travel business, while business travel.
Overall saw a sluggish recovery pattern, but for us the growth was robust this quarter, partially aided by new accounts acquired over the past few quarters, we recorded a 122% recovery in comparison to same period in fiscal year 1920 more than 250 key accounts.
304 P. S M. He's brought onboard it on my base during this quarter on quest to travel also we celebrated some big wins, we Baghdad accounts of 11 large groups, including Garda capital NYCHA, and Gator Hagia Corporation and more.
Now sharing updates for from some of our recent strategic initiatives. We continue to invest in our Fintech initiative called trip money after having launched successful products, including travel loan book now pay later and insurance offerings, we are ready to launch Forex card on Mcmurtry Paraguay.
As international Air travel, except in the coming months, we are confident that this guard will make its way into wallets of Indian outbound travelers.
In GCC during the last quarter, our focus was on building supply months and products for best in class booking experience for Indian nationals, other experts and local Emmett Avi.
Population.
Happy to share that there was a 96% quarter on quarter increase in new user equation acquisition in Q3, Elbit at a low base.
Our focus will continue to remain on increasing our penetration in the region considering their 93% of U. A population uses the internet on a daily basis as well.
Serge estimates.
Lastly, allow me to give a short update on our loyalty programs.
To continue extending value to our loyal customers reorganize the empty black first or sale campaign ran in partnership with key hotel and flight partners, which has received positive feedback from our customers.
Since the launch of the program about one leg users have been added to the top tier.
Two tiers of FMT Black and 72000 users were able to upgrade their gears by transacting for more than one leg gross booking value on the platform for.
Argo viable loyal consumers under God Traver, we further simplified the flow of dry bulk wine all go cash redemption, helping improve usage by 94% in the quarter.
We also launched personalized instinct cash cashback engine on guar ruble to reward consumers with instinct of all guys to offer more value against a single booking.
With this let me now hand over the call to Mohit for financial highlights of the quarter.
Thanks, Alicia Hello, everyone, I hope, you're all staying safe and healthy.
The report.
Third quarter for the fiscal year started on a positive note with customers more confident than ever who step out of their homes and plant Amish spirit, how good of a strong surplus ethically across all segments further boosted demand say aluminum living with high seasonality quarter since.
International travel was too big.
Baird.
This quarter domestic leisure destinations and NGO solve a major recovery before bookings were slightly hit in December due to the Army Corps care.
In the beginning of the current view of the pandemic in India.
Over the last few updates we have spoken about our cost rationalization efforts through structural reductions in fixed costs and building efficiencies in variable costs like marketing and sales promotional expenses.
In quarter, three we could see the multiplier effect of these cost efficiencies, which aided by demand recovery led to a doubling of the registered operating profit compared to the last quarter a registered operating profit for this quarter stood at $13 $2 million, which is almost two times compared to $6 6 million in Q2 and almost two six.
Times compared to $5 $2 million reported in the same quarter last year.
Or just a photo of a noncash depreciation and amortization expenses.
The current quarter's adjusted operating cash profit.
<unk> nearly signed one $6 million the highest in a quarter is hereby years till date.
Our Q3 total gross bookings is stood at $801155 $7 million, which was the highest since the pandemic.
The string of strong growth of 58, 5% over the previous quarter.
And about 93% growth over same quarter last year in constant currency terms.
Moving on to our business segments.
Air ticketing and just to the margin stood at $52 $9 million, representing $105, 9% growth over same quarter a.
Year ago and cleared Franco person.
Growth over the previous quarter in constant currency terms, we can.
<unk> one of the most reportedly ticketing platforms with a market share of about 20% in the domestic air ticketing business.
Including both the online and offline module bookings.
Just a reminder, for our hotels and packages business increased to $54 $1 million during the quarter reported which is an increase of 117, 6% over same quarter, a year ago and 53, 6% increase.
Sure.
The adjusted margin reported in the previous quarter in costs from getting deals.
As far our bus ticketing business, the Winchester Martinez stood at over $41 million and represented a 58, 4% increase over same quarter last year and a very robust 79.1%.
Quarter on quarter improvement.
Led by supplier recovery in the domestic business or it was brand continues to lead in the bus ticketing segment in the country and in future, we'll be expanding that it was brand franchise two intercity cabs in rail bookings as mentioned realization.
Lastly, we are just in margin in our new businesses was $5 $9 million, an increase of 44, 4%.
Over last year same quarter, and an increase of 33, 3% over the previous quarter in constant currency and gums.
Let me now share some details around the operating cost during the quarter.
Using the reported Q3 after a little of almost two years, we finally return with onto who level Hygge campaign.
On the matrix brand on the Indian TV.
The campaign was targeted at boosting confidence, while highlighting the convenience and flexibility offered on the make metal platform.
<unk>, new marketing team up narrows to best service Hulu.
We're centered around our brand promise to always offer best value and value adds on travel bookings, even with the increased brand spending overall marketing and promotional expenses during the quarter stood at five 6% of gross bookings.
Marginally higher than the 5.4% reported in the previous quarter registered personnel costs and as vehicles for the quarter stood at about $34 $7 million compared to the pre pandemic and run rate of about $45 million per quarter.
Is it by significant long term fix caused the acceleration and efficiencies in our customer acquisition spend baked.
During the last six quarters.
Under the pandemic, we could witness the impact of scale economics filtering down to registered operating properties.
During this quarter, we have increased our stake in <unk> to travel.
As part of the acquisition framework and are excited about the strong future prospects of this business.
Radically towards facilitating travel bookings for large corporate customers.
Within the corporate segment, we have surpassed pre COVID-19 levels.
It remains one of the key demand segments for our company.
Signals that gives some color on a few nonoperating P&L elements. During this quarter, we recorded a profit of about $2 $5 million from exchange of our shareholding in <unk>, which was acquired by cloud now a Swedish Fintech company. We have also recently provision for eight.
Point $4 million fully provide for all the trade with an award in the ongoing litigation with the founders of the it still grew on a conservative basis, while we continue to pay all available legal remedies in the metal.
During the ongoing quarter, we continue to focus on tight cost control Amit muted demand.
We could report that many of the key cities in India have already seen the peak of the third wave. We believe there is.
A good possibility of a sharper recovery in demand in the coming months as Indians blonde and make some modifications.
Soon we'll be with them with the most trusted brands like mitral boy, we blended buzz to make their travel more connected and convenient with that I'd like to turn the call over to the operator for Q&A.
Okay.
Thank you Mohit, we are now ready for Q&A anyone who wants to ask the question can Pcs and.
The ninth community. Thank you.
The good ones to ask the question.
But if you can speak now.
Yeah.
Yes.
Sorry.
Richard is that Korea side.
No. It's I think it's better now yes, sorry.
My question is just on the business.
Now I know that international has barely recovered in Q T. N N O omicron, probably is no for the ongoing quarter by a deep does domestic business returned glitched equal weight.
Sales in Q3.
Given that you would I think approximately 75% to 80% of your pre Covid peak, if I understand it right.
You see that is my first question.
Yeah.
Yeah hybrid it services are just sure. Good question, let me just take this.
Youre right, we did you know.
October November December quarter, or a quarter that we're reporting out we did see.
On a run rate basis few days of AD Danang actually even further our air ticketing business, we had seen a recovery of 219, 95% on some days as well in fact, but even hotel.
Our bookings you know as I mentioned very briefly just in one lane that we had seen during the pandemic regard the check ins during the Christmas weekend, as well, which was very close to the pre pandemic because well so and so.
I guess that was a good indication of overall demand sentiment improving across the board and a recovery coming very close to express domestic travel is concerned you know I think with an exception of I would say business travel to an extent.
Leisure segment was definitely bag and some are visiting friends and relatives, but in any case happening.
So with an exception of I would say business travel, which was taking a little bit more time to come back I mean for us. It was a good story given that we had acquired a lot of accounts, but at an overall basis business travel was lagging behind a little bit, but all other segments of it.
Coming very close to.
Pre pandemic level on a run rate basis, I think that will be fair to say.
Thanks.
Thanks, and then just my second question is on the advertisement no vertical if you can give us some update because I think last time, you guys had mentioned that.
Looking to make further investments in that space. So any further update on that side of the business.
Also if I can add I think if we can.
Just a housekeeping question.
Again, Chad now working a census of a market Shannon in.
In the aviation business in India bus truck bus ticketing business.
Sure. Okay. Let me just take the first one first.
Yes, so the platform that we had built which was a third third third party advertisement platform, you've been making continuous investments on that.
In fact, our we've been just improving the product offering also on that so you know more recently, we have scaled up the sponsored link you know sort of our AG sector any any partner can come in.
And you know them advertise on our platform.
Further from what it was in the in the last quarter in terms of just the product enhancements that we are we've been able to do and we have been continuously getting good traction from you know all our partners, especially in the you know on the on the hotel side, but also on ground transport.
Sure.
And <unk> in some cases, even some of the airlines have been very very interested in.
Interested in participating in an advertisement advertising on our platform as well so.
This is a long term initiative.
We are continuously going to keep making.
Platform five more robust with additional features so we do have plans to.
Add a lot more analytics as times are in the in the coming quarters.
Our partners and keep making their product.
Far more sort of attractive and robust.
You know from from a you know people, who would come and advertise on our platform standpoint.
So it is going to be a continuous sort of our investment area from our point of view and you know like I said it is already.
Giving us good traction.
On on on the number of advertisers, who are increasing quarter on quarter.
Now talking about the civil aviation market share I think mohit just called out as part of his speech, we continue though to be close to about 30% of the you know if the total market both online and offline put together.
As far as domestic air ticketing business is concerned.
And as far as bus segment is concerned we continue to be.
The market leader I guess Ah you know by far from the online booking space standpoint.
And in and we should have all of the online booking space on bus we should have and are close to about.
65, 70% share I would have thought.
Got it thanks, a lot legislative Eva one final question before I jump back into the queue.
Our winter cab business that you called out on the ground a transport.
That's part I guess I'll kick off the bank and offering.
I noticed from the act that it's really a marketplace, where you are showing a availability of cardon drain from third party partners and stuff like that and you talk a little bit about monetization on that.
What does the commission structure on that business with your partners.
And assuming this will be housed in the other revenue line.
Yeah. So let me just.
I'd tell you a little bit more about.
So the whole card business that we're trying to build.
So it has to sort of a broader.
Products out there one is the airport transfer which is effectively.
And attached to a flight a customer would be idea importantly, you would like to or just a and I'll come to the airport article from the airport to the destination and the other one is the intercity cab.
Broader than I think what you were referring to was more of the marketplace or a lot of partners, who are already listed out there and the customer has the option to pick and choose from and duck at auction and then an answer it would be fulfilled by our.
Various sort of who our partners are the operators that we have entered the backend, which we have aggregated.
And we had if you if if I miss and sort of.
Also or add year that we had mentioned it in the past that we had made an investment on the supply side.
You know our software are where we were trying to just oh provide us the supply side the technology.
Technology platform for the operators as well or the or the Gaba Aggregators. So that's my model on the intercity cab what I was trying to highlight in the in the script. Early on was also there is one more initiative that we have launched and you know we're already by load testing it out in the market.
Daily NCR in the end.
In Bangalore and that is that is called ride VIX users slightly different model, where we earn a signing up partners Oh, who already have a pool of cabs.
We're.
Sort of branding the core GARS under on the road a year.
You know, taking a better control of the inventory to improve the overall product experience like the actual rate experience.
And trying to position into more like a differentiated experience.
That does set of partners that we are going to have them and we're calling it.
The right franchisees, who the partners, who would work with US the model for either aggregator model or the REIT model is going to be either a commission model Ora with a revenue share model. So that's really the monetization plan on that.
But it's early days in this market we are right now doing some strategic investments in this area.
But we definitely see this as a very big opportunity and we are going to sort of scale this up or in the coming quarters.
Alright, and thank you so much I'll just jump back into the queue. Okay. Thanks for that.
Okay.
Thank you Richard any other participants who wishes who wish to ask a question.
Yes.
Okay.
Okay.
Yes.
Okay.
Yes.
Okay.
Okay.
Yes.
Who wants to ask a question because you can sneak novels.
Yeah.
Okay.
Because your line is muted you'll have towards that and speak.
Seattle and rupee.
Yeah, Ashwin wants to ask a question.
Carsten.
Please.
Last question.
Can you can you hear me.
Yes.
Hi, thanks to their partners.
So I had one question in terms of the Horta <unk> US segment, wherein the Tv's materially made up almost a date and a 20% sequentially and there was a drop in terms of debt. They create said this quarter. So was it largely due to the skew towards the premium hotels.
Hi, Ashwin magazine that had been under to resolve theory, one there'll be skus kind of being more towards the premium side of hotels and also doing business specific quarter.
So the mix change was also in favor of the holiday packages a lot more growth is what we have seen coming through our holiday packages as customers have chosen to convert over that gets protos been slow if you're not doing standalone bookings.
And since the holiday package product is more like a.
Slightly muted margin business compared to hotels, because it is a combination of hotels as well as you know air tickets et cetera before.
The segment kind of margins have come down a little bit, but the hotel margins per se haven't really seen any significant contraction, but further mix change towards the Permian.
Okay.
And just one more in terms of the assay so sort of domestic passenger growth. If you look at it sequentially was up I think more than 60%.
But in terms of our flight segments. There was a lag so is it more of a timing issue.
Oh, what is driving that.
Yes.
Could easily be that sorry, I missed that one.
So essentially if you look at domestic flights they apply.
Traffic in India that goes up almost 60% sequentially.
In this quarter and for US the flight segment, the broad was tagged lower.
So is it more to do with the timings are.
Yes, absolutely.
Right.
What did you see a reporter is flown passengers. What we report is booked passengers and therefore, you know you'll see a little bit of a.
Difference across quarters based on the emerging trends on you know booked versus Florida.
Thanks, Mike Thanks, and all the best.
Thank you Oswald Mosley go.
Okay.
I think we have a question on chart as well, maybe we can take there because I think sort of.
Mike Edwards employees, not able to speak so maybe very picky with who we go to Krish Agra I can just quickly respond to that question and a question for everybody's benefit is how as your initiatives translated into improvement in client stickiness and LTV over the years in different businesses.
Yeah, no. It's a great question sort up so I'll tell you one sort of a metric where we very.
Closely track.
I think the short answer to this question is it has played out quite well.
Especially for our majority.
All lines of our products and the offerings.
And we measure it through the repeat trade.
And.
On any given quarter.
We would have.
Anywhere between 65, depending upon the quarter that you specifically look at anywhere between 65% to 70% of their transaction will actually come from the existing customers and the rest will come from the new customers in that particular quarter. So it's a pretty healthy repeat trade.
In fact, it's a very sort of a good balance between.
You know the repeater transactions coming from the existing consumer base.
But also the new users every quarter quarter after quarter that that keeps coming our way.
So overall Oh, you know given that we have been in the business for many years.
It has been playing out all these investments have been really playing out in a manner.
Hum.
Sort of helps the overall P&L as well.
I think we can go to push Agra now, which are Greg Please feel free to to your.
Thanks for the opportunity just one question on <unk>.
So if I if I look at your oil.
Our structure our cost structure.
If I can give them more things on now.
Which of the segments.
Sort of.
Taking a higher share it.
Expenses.
You have been you know marketing.
For a fairly long time, so the segment would be sort of cash generating for them.
Asia.
Generally it is one which would be taking a little bit higher share it with us.
Batesville adjusted Broadness and John .
If I have to look at it on the operating profit ways each of the segments probably.
We're taking a higher share and deal with all of that.
Spain's yeah.
Hey, Krish I could and maybe I can pick that.
Well kind of difficult to see.
Exactly hit to kind of segment, where he has kind of minimal profitability because as board Legalizes mentioned, we have a lot of repeat and a lot of customers come in and kind of transact.
Crossing our business segments.
And their first kind of in a very difficult to allocate.
It is this customer acquisition cost.
These segment Colo broadly.
At a high level sense, what we've always been calling out that you know the air ticketing business has been kind of profitable for a fairly long standing almost since the time of her I feeling because in Spain, and therefore be the you know the overall kind of you know.
Our customer attrition expense in there the business now a very well organized.
Clearly, we have been calling out the accomplishment of space.
Specifically hotels in Deadwood within hotels, the budget segment of hotels.
Been an area of investment over the last two years in 2016 onwards, and therefore lies part of these things have been directed towards the particular segment. The good part is you know are kind of you know.
Pretty much on an Englishman cycle, even on this segment or in this space also has pretty much played out now and therefore, the unit economics kind of Illinois start look much better and overall therefore, you can see our marketing and promotional expense has trended down very well over the last five or six years going to be joined with me.
<unk> leads to grow almost close to what 15 Alco some good points of those booking and we are now closer to what fakes exports to this point of those bookings would have seen that.
Significant deficiency coming in ASEAN banner accomplishing.
This is godfrey.
So there because he on a normative versus pre pandemic.
The hotels business no control almost like half of the business mix.
It has to be a very small contribution until about today is that so that there is broadly how we're just kind of playing out right now.
Her charter that's helpful seeking a last one from my side.
Like how do you see or do you see any commission in the hotel space or what are the euro but he didn't have this.
Commissions moving more the medium company Hotel segment and the reason I ask this question is.
So and Youre largely depending on I mean, you're Yana Sally.
Their parents in the premium workers. So one point of all these what is an already large awards more than mortgage basis.
A lot of these new models, which are coming up.
So there is a.
And are there is an implication towards more capital coming in this part of the hotel.
So.
Where do you see any commissions of what all heading over the median somebody who can take employee wasteful.
The entire event space in them.
Do you need to keep in mind that overall occupancy in India, and even in kind of in a normal times you know pre pandemic used to be more in the sixty's era for the industry as a whole.
Hum.
When it comes to this particular business any room night, which was unoccupied is actually kind of of Easter Tonight or is it's almost like a perishable who made right and therefore and also the incremental costs on and on and on and on a on a hazard room night compared to the.
The incremental margins coming in a political turmoil.
Disproportionate to the hotel is extremely incentivized in terms of taking the occupancy levels as high as possible.
But like I said in overall at an industry level also.
Great he has to be kind of annoying the sixties.
Therefore, compared to a lot of the adult.
Market, where the mature markets, where the occupancy rates are much higher and the fact that the hotel industry is extremely fragmented in India with more and more of an all independent mom and pop kind of properties rather than genes of hotels will landscape per se. There's also a slightly better margins compared to the mature markets.
From our own kind of inform our point of view, we've always kind of bluebird.
Creating long term sustainable economics with all our suppliers it was pretty overlay of this lens and therefore over the last few years, we've actually brought down our overall margins in the hotel business.
From being in the early twenties to wind up being more in the high teens now and that we believe is kind of in a sustainable.
Both in the short term liquidity longer term period.
For the reasons I like Garlock, yes got it thanks.
Yeah.
Yeah.
Andy I wanted to ask a question.
I would now please yes.
Yes. Thanks.
Yes.
Hum.
Okay. Thank a lot. So I mean, firstly you mentioned that.
<unk> Internet penetration outside of the Mcdonald in tier one cities. So how has the share of transactions cafe et cetera move for you.
On you know outside of Mcdonald's in tier one cities, we can track back and can you shed any numbers on that and maybe across the segments of them at all.
Not happy to Peter.
It will just give you a directional sense of this area and it's obviously a good question given the fact that.
The next level of growth.
As already been sort of coming in from the smaller cities now and more and more in the future is going to come in from there.
As we all know is deep also mentioned as part of his speech.
And the tanks to pandemic.
D a.
The penetration on the adaptability of Internet.
And even e-commerce sort of accelerated.
In these cities as well so we are taking bunch of initiatives some of them we've already called out.
But I think it would be fair to say that the new user acquisition for.
For instance for a real bookers or for that matter even bus bookers.
We've been getting.
Out of those new users as I called out about 30% of the <unk> and then a quarter come from new users.
Our overall and the contribution coming in from small listen in.
And on through the real book or the West Bakr.
On the back of that new user base is about 25, 30%. So about 25, 30% of the new users are coming through the smaller cities.
You know on doing.
Our rail bookings our bus bookings.
And sort of budget hotel bookings etcetera, well and the other.
Sort of a product that are in the area that we've seen.
A lot of traction coming in.
Yes.
On the on the air ticketing side, initially or Ron sites, So all the regional small sectors.
They all of those bookings that are untapped, because our effectively tier two tier three cities in fact, even beyond I and then future also the expansion of airports are also going to be like that.
And we've been actually more than lion's share of all of the sectors, even on the air ticketing business. So all in all we you know good traction coming from.
Okay.
I will remember to remove all of them.
I think they've got good.
Yeah.
From your side or somebody else's.
Sure.
Could you give us a proposal not 10% new user new Minsheng is I'm thinking out of basin.
Hum.
Hi.
Your entire base of new users yes.
Secondly.
Can you talk a little bit about sort of.
And how you expect the margins to move next year.
Assuming at some sort of normalized yard, but doesn't solve your investment in some of the Archstone, etc is also going to come back.
So can we expect you to be profitable on a full year basis somewhat.
The ends of Martina you're looking at.
Yeah.
Charlie I can pick that language is called logging on the hotels business. We do expect margins to head of lives. They remain stable in the high teens. So is the case with the bus ticketing business and over the margins kind of largely remaining probably stable closer to the.
Isn't hopkin I need help with some kind of range Columbia ticketing business also we do expect margins to remain.
Around 6% to 7% range at least now we've got kind of a mining structure and by line of business. We do believe.
With the kind of efficiency that we've seen all the on the customer acquisition spend side, which I've just talked about we do expect that while there might be small increases in the overall kind of you know I was going with almost no spin it is unlikely to kind of go beyond say the seven odd percent kind of you know.
They spun out of gross bookings.
Level compared to the 900 enforce at this point of those booking that it used to be you know pre pandemic and therefore that kind of gives us confidence that we can that should kind of remain on a profitable path I mean, just to kind of give a little bit color on how you don't give kind of an affair that piece over the last two years, if you see loss.
Here, which was a high pendant makes it kind of in your kind of almost cash breakeven.
In Brazil, we expect to be kind of you know obviously, you now have a profitable year and therefore that gives us even more confidence that efficacy in this particular quarter also you know feet with volumes kind of in a recovering and with kind of you know.
Good recovery in the in the in the couple of months of the quarter coming through.
<unk> been able to scale up profitability very nicely.
Therefore, we believe.
Nobody can.
It's back in you know normally.
Travel, Italy is kind of coming back in place.
As the pandemic and we should be in a good space on the profitability side.
And lastly, any update on <unk>.
Is it.
And more stability.
Question about on the call who are not on the not speaking to kindly put it on mute because there's a lot of.
Background voice.
Ooh Ooh.
Sure.
Can you did.
Did you get my question Mohit do you want.
Yes.
Please go ahead.
Yes, so any update on the India listing plans could it happen next year.
How are you thinking about.
You're not allowed anymore.
Didn't really colored in listing plans as such.
Well cube cube out options open on that.
No plans as yet, but they've been open and legacy call loads and our focus is to kind of you know.
If we look at it from a cash position point of view, but kind of have the.
Big comfortable undercarriage, pushing we've got to put it in $50 million of free cash and cash.
Equivalents on the balance sheet.
And also just kind of mentioned it is we should probably be cash accretive and not be kind of in a decline in cash for operations.
We also don't believe there's any.
Large investment opportunity requiring a significant amount of unknowns get rid of infusion.
So therefore, keeping that in mind I think the focus right now is in terms of making sure that the <unk>.
On the travel side kind of comes through we see through the <unk>.
And of the pandemic and kind of have a much better kind of your cost structure and candidly, we earn tobacco profitability as that happens really kind of taken appropriate view, if you're going to kind of look at an alternative capital raise models.
Sure. Thanks, that's all for me.
Yeah.
Uh huh.
Alright.
Mike maybe we can take burden recall there is a I can see one more question from the costs on the on the chart and then there's an anonymous similar question and I guess or.
Another question on profitability.
Because we are already profitable.
We actually called out that it's the best ever profitable quarter that we just reported out.
And as we've been sort of recovering out of the behavioral whenever there has been recovery on the quarter based on all the measures that we've taken.
You know historically just to restructure our cost base.
We've been profitable unprofitable large scale.
I guess when I said that also answers the anonymous question that we have got many animals at Lilly, yes, yes.
Sounds good.
Any last questions, we could take that now.
As you know, we've kind of luker wrapping up the call.
Okay.
Yeah.
And I think mohit.
We can be and in the call, but now and any any further questions I will request the participants.
To me unless and until we get back to that.
On May <unk> updated on six keys in their disclosures and on the website. So please.
Feel free to reach out to us.
Thank you everyone. Thank you. Thank you.
Thanks.
Thank you everyone.
Thank you.
Okay.
Okay.