Q4 2022 MakeMyTrip Ltd Earnings Call
Yeah.
What have you what I'm <unk>, Vice President Investor Relations at make my trip limited and welcome to our fiscal year 'twenty, two and fiscally.
Fiscal year 'twenty to fourth quarter and full year earnings Webinar today's event will be hosted by deep Kalra accompanies group Chairman and chief mental joining him is Rajiv <unk>, our co founder and group Chief Executive Officer, and Mohit <unk>, Our group Chief Financial Officer. As a reminder, this live event is being recorded by the company and will be.
Made available for replay on our IR website. Shortly after the conclusion of today's event.
At the end of these prepared remarks, we will also be hosting a Q&A session. Furthermore, certain statements made during today's event, maybe considered forward looking statements within the meaning of safe Harbor provision of the U S. Private Securities Litigation Reform Act of 90 to 95.
These statements are not guarantees of future performance are subject to inherent uncertainties and actual results may differ materially any forward looking information or delay. During this event speaks only as of this date and the company undertakes no obligation to update the information to reflect changed 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 13th 2021.
Copies of these filings are available from the SEC or from the company's Investor Relations Department.
I would like to now turn over the call over to Roger for his remarks over to you <unk>.
Thank you Robert.
Everyone to our fourth quarter and full year earnings call of fiscal 2022, I hope everyone. Joining us today is keeping safe and healthy.
India went through turn covered with <unk> video and that started in December 2021, and continue during January and February .
While the reported cases of a high severity of infection was low as compared to the veterinarian.
Possibly aided by significant vaccine coverage, which has now crossed about $1 9 billion doses.
Travel slowdown with the onset of homegrown, but picked up a game later part of the quarter when only kind of omicron started to recede.
Demand started to come back, especially for leisure segments.
<unk> momentum remained under pressure due to inflationary pressure due to price increases acuity.
Leading to high airfares.
This full fiscal year overall.
Second pandemic impacted deal for travel sector with the robust recovery places in between and between vans. However, what is encouraging now is that pandemic related moment restrictions have been lifted across India and pretty much in the rest of the world, except China leading to try.
Coming back to near normal.
Human sentiment for travel, especially for leisure is quite positive right now and more and more people are looking to travelers obligations in 2022.
Government of India also open commercial and international flights from 27th March and this is has been revived in international travel demand as well.
In fact, as we enter summer holiday season, we are witnessing pent up demand for both domestic and international leisure travelers.
While the interest and demand momentum has been strong we are watchful of geographical geopolitical crisis inflationary pressures and its ripple effects on the overall economic environment in travel demand in the future.
As highlighted earlier there has also been a significant improvement in online buying behavior during the pandemic leading to growth in internet users across all demographics as a result, while other e-commerce categories have seen accelerated growth in number of transactions, we expect online travel sector to benefit.
From the shift in future at <unk>.
Things normalize and more and more people start to travel.
Currently there are 622 million active mobile into use internet users in India, which are expected to grow to about 900 million by 2025, driven by smartphone penetration.
<unk> online shopper base is expected to reach $220 million by 2025 from the current base of about $160 million.
We are also aiming to increase our online penetration to bring new users to transact on our platform by not only.
Continuing to focus and grow our leading travel use cases of hotels and packages.
Flooring alternative accommodations and bus, but also investing behind adding and growing other travel and adjacent use cases in line with our already called out vision to be the travel superdrug.
We recently expanded our real and intercity cab booking services with the Red rail on Red bus platform as well as an independent <unk> rollout.
And ride our intercity cabs to make our adverse platform our comprehensive ground transport services platform now.
This would help booking any of the services Super convenient for our ground transport travelers. We also believe both rail and gas offering will be significant source of new customer acquisition in the coming years.
With a promise to add ancillary use cases in this reported quarter, we launched global cash card by money on a travel focused fintech initiative to cater to forex needs of our international outbound travelers.
In terms of targeting new travel growth segments, apart from going deeper in penetration to tier three and tier four cities on the <unk> side, we are now aggressively growing b to b.
Corporate travel segment with Smes and large enterprise product solutions via my vision and quest to travel brands that are becoming increasingly popular with our clients and.
In addition, we are also driving b to B to C demand through our my partner and my affiliate solutions.
Coming to the highlights of Q4 quarter now do.
During the reported quarter.
Despite the headwinds and slowdown in business compared to the previous quarter.
Able to ensure sustained profitability in all patients with gross bookings touching.
$1 billion.
And our air business to.
We continue to maintain our leadership position, we continue to gain market share and our share in Q4, 22, 31% as compared to 29, 7% in Q3 and fiscal year 'twenty two.
Domestic traffic leisure desert leisure destinations like Srinagar there alone.
They have shown more than 100% recovery.
Higher sales due to increase in fuel prices affected the demand momentum to some extent, but we continued to see steady recovery on the back of pent up demand in leisure.
Leisure travel during summer holidays.
International Flight daily departure supply.
And also now started to scale in April 2020 to nearly 65% of the capacity has come back overall.
As compared to January 2020, which is pre pandemic.
<unk>, Maldives and Nepal, our key destinations where in capacity recovery has touched 100% by UA is that about 85% of leaf oversupply levels at <unk>.
<unk> is open for the demand recovery will be led by popular destination for Indians, like Thailand, Malaysia, Singapore, Indonesia debate, Maldives, all of Europe et cetera.
Coming to our hotels packages and alternative accommodations business, where demand pattern was not any different from January and February months, but where January and February months were somewhat impacted by omicron much Stephanie the company starting March on account of leisure travel.
<unk>, social and corporate events.
<unk> has now started to stabilize and we have seen steady demand recovery across all price segments. Most of leisure destinations are already clocking volumes above pre pandemic levels and the outlook for Q1 remains strong.
We continue to improve our product offering and bring more and more hotels online.
As mentioned earlier, we are going deeper into the country and we have now hotels listed from 1600 cities as compared to 1300 cities in fiscal year 'twenty.
This extensive inventory is helping us bring new users from tier three and tier four towns on our platform.
Further improved the experience for our Luxe collection of Super premium properties, we have started offering loves packages with which deliver more value to the customer.
And bring additional revenues for the advertise these value added services have been well received by our by our customers.
One of the trends that will continue to remain strong as preference for alternative accommodations.
In short rates.
Pillar opting for Staycations in homestead, such as well as in 100 homes, we continue to invest and grow this business.
Total active rock properties on our platform have now increased to more more than about 34000.
We have witnessed.
70% increase in homestead listings from tier two cities and unexplored destinations or pre pandemic levels homestead as a key segment for us from strategic point of view and is one of the fastest growing segments.
Our holiday packages business was slower at the start of the quarter like other businesses, but we were able to grow month on month end and currently this business is already above pre pandemic levels.
Majority of travel during the first half of Q4. It was dominated by domestic destinations with international travel started to pick up towards the end of quarter during the quarter.
Schmidt Himanshu and demand GOR in northeast weather destination, which attributed to about 85% of the domestic demand.
<unk> seems to continue for the Q1 as well with an addition of destinations like Ladakh for international destinations that demand was majorly dominated by Maldives underway Oliver with easing of restrictions Europe also started picking up towards land going to head into Q1, the demand trends are similar with edition.
Of new destinations such as malicious embolic.
Coming to our bus ticketing business Q4 saw a steady recovery post the third wave. It is expected that the demand picking up further in April .
June quarter on account of school vacations reopening of offices, especially in Nike sector inventory will bounce back for them, particularly.
Clearly in the southern region.
Towards the end of Q4, we also saw green shoots on new fleet additions.
Addition from operators in a few states. This is a silver lining as operators have shown interest in New Fleet addition for the first time since March 2020, and augurs well for both inventory expansion as well as improvement in net promoter score.
On the product side enabled bus operators to cross sell add ons in booking enforced booking touch points in.
In the first phase operators can enable food related add ons.
Jim will be extended to other categories, such as luggage travel essentials et cetera.
In the current quarter Primal program for top rated sellers, which aggregates the best.
<unk> services is shaping up well, we have close to 2000 and 450 physically branded buses on the road across the length and breadth of the country and this is helping us create a robust top of mind awareness there have been several new initiatives to differentiate the brand more experience <unk>.
<unk> three the adverse lounges, which are live across there.
Top floating point spanning yet.
Other ground ground transport use cases, which include realigning into cyclic apps continue to scale and bring new users on our platform.
Witnessed strong growth in both seats and gross bookings value despite omicron impact.
Brown transport contributed to 27% of the overall new users acquired on an make my trip and glad we book platform in Q4 significant part of this new traffic comes from the non English speaking DSP and tier four cities, thereby expanding the reach of our offering into new geographies and user segments. We are already witnessing strong growth.
In our rail bookings business.
66% growth in seats in Q4 fiscal year 'twenty two.
<unk> Q4 fiscal year 'twenty, one surpassing fleet covered leverage during the quarter, we launched the Standalone read read real App with an upsize of seven two N V. This is the latest step in the industry to target about user base. The App has already seen unending 60000 downloads in for 30 years.
Days of launch with 75000 active user base.
The right to buy that Bush, our curated and certified intercity cab offering with quality vehicles and train drivers is also piloting into big cities Bangalore R&D.
21% of our overall bookings originating out of Delhi, and Bangalore are now re certified.
Application, which is a key component in the gross booking experience was enhanced to allow for detailed tracking and auditing related promises like driver wearing uniform and mask and clean cats.
All three of our brands make my favorite why be borne redbox.
To enjoy highest top of mind recall and concentration we have industry, leading repeat rates for Q4 over 70% of transactions were done by existing customers clearly showcasing the strength of our product experience and Brian .
Coming to our expansion in GCC.
So far it has been a strong quarter for DCC with a continued focus on efficient customer acquisition by enhancing customer proposition and competitive advantage, while covered did affect the growth. The region is bouncing back and is expected to recover to pre pandemic levels in 2022 for the quarter.
GCC business grew by 52% quarter on quarter.
Our Travelport Fintech platform trip money is shaping up well as well.
We continue to invest and expand our offerings. We have introduced book now pay later payment option, while booking travel flight articles on make my trip as well as the boy people out.
If money has established the marketplace, attracting 15, leading fintech players.
And with <unk>.
And banks to offer easy travel credit to the travelers.
Initial response to be NPL on the mcmurtrie platforms has been very encouraging.
With a 60% growth in the NPL transactions quarter on quarter over the past one year.
Trip money has also strengthened its position in the Forex space by acquiring a majority stake in leading online currency exchange platform in India.
Called book My Forex.
With this strip money has a unique position in the industry by being the only player in travel Fintech space to offer a suite of services like INR denominated Global guard multi currency Forex card foreign currency delivery Pan, India, and instant foreign remittances coming.
Coming to our initiatives one non direct me to see demand segments. My partners are projected to par offline travel agents. We have now on boarded more than 25000 travel agents net additions of new travel agents in Q4 was about 3089 by the end of March 2022.
2% of overall agents have transacted at least once when the platform and the number continues to grow steadily we are bringing more value to the agent to product enhancements during the quarter, we launched new Onboarding page to empower faster and smoother Onboarding for agents also launched a detailed counsel lenders.
On the platform to facilitate cross sell reconciliation for the travel agents.
Our Miami affiliate program is to power other online platforms for driving services. This initiative is aligned to our outlook for the future.
During the quarter, our exclusive partnership with Amazon pay went live in phone pay went live in April 2022.
These partnerships are aimed at providing greater value for customers with access to make more trips best in class flight and hotel all things. There is an accelerated digital shift happening because of the pandemic and through these partnerships will be able to extend our customer reach to Amazon pay than phone based large consumer base, especially.
Firstly in smaller cities and towns.
Our aim is to make travel bookings extremely convenient for new adopters, thereby increasing your online penetration of travel bookings.
Our technology investment in getting to corporate travel demand have started paying off as people have started returning to offices in greater numbers gross bookings for corporate business during fiscal year 'twenty two grew by 266% year on year, driving non DTC mix to high single digit.
Acquired 262 key accounts and 502 Smes on my list during Q4 some of the key accounts that went live with <unk> in Denmark S. C. Johnson MVP news et cetera.
Western travel our active customers count has surpassed pre COVID-19 level active customers on <unk> to be the 855 in March 'twenty two versus 114 in January 'twenty.
Some of the notable customers acquired during the quarter or NYCHA, Tata Medical <unk>, Tata Motors finance, drawing books et cetera.
Continue to work on both of the products to enable seamless integration with our corporate systems and drive employee adoption. It is noteworthy that.
Despite being a late entry into the corporate travel segment, we have emerged as a significant player in the corporate segment in terms of gross booking value as well as revenue.
To conclude consumer.
Consumer sentiment remains strong.
Especially for leisure travelers.
While the demand momentum could have been even more stronger but for high fares and inflationary pressures. We are hopeful of a recovery to pre pandemic levels in domestic travel demand by first half.
And international travel demand by second half of the upcoming fiscal year 2022.
With this let me now hand over the call to Mohit for financial highlights of the quarter.
Okay.
Okay.
Hello, everyone I hope, you're all staying safe and healthy.
On LINTA booking in India is still an independent underpenetrated market.
The aim is to continue to grow at all thing and bring more and more users on up.
Platform via the newly big travel use cases right.
Ensuring the diabetes reach drive profitability.
Leading business segments as reported earlier during the last couple of years to the pandemic.
After the coupon strategy on cost optimization to drive better operating leverage firstly.
Concentrated efforts towards long term fixed cost reduction and secondly brought in more efficiencies in our variable.
And in particular, because some litigation costs.
Result of this despite a 12, 4% sequential decline in gross bookings versus the previous quarter.
We maintained strong profitability and posted an adjusted operating profit our adjusted EBIT of about $10 million.
Adding back noncash amortization and depreciation.
Assisted cash operating profit on the adjusted EBITDA.
Stood at about $15 5 million.
For the full fiscal year.
Slide 22, adjusted operating profit is at about $3 2 million as compared to an adjusted operating loss of $18 million in the previous fiscal year and a loss of about $17 million.
<unk>, which was VP pandemic here.
Moving on to our business segments.
During the quarter.
Ticketing adjusted margins stood at about $44 $8 million.
Representing a growth of 25% year on year in constant currency terms.
This is the first quarter, where we have seen growth over pre pandemic.
Comparable quarter of Q4, FY 'twenty in the domestic air ticketing market.
Assuming that regularly international flights have been restarted.
Since 27th of March 22, the recovery in the internationally ticketing segment, which has stood in the forty's during the reporting quanta is likely to improve in the coming quarters.
With the strong recovery in the AG business margins on expected lines have gone back to pre pandemic levels and it stood at about 1% during the reported quarter.
Our OTA brands, both mid market and why we will continue to be the top two travel brands in the country with a combined market share of over 30% in the domestic air ticketing business.
Adjusted margin product, who doesn't packages businesses stood at $42 $3 million witnessing a growth of 22, 2% in constant currency terms.
In the case of the integrated business the recovery to pre pandemic levels is much stronger than the domestic hotel bookings compared to international hotel bookings.
This is likely to gather pace in the coming quarters.
Reopening of regular conventional flight.
The margins in the segment stood at 17, 7% for the quarter and 17, 9% for the full fiscal year.
Likely to remain stable in the 17% to 18% range.
Now, let's ticketing business.
The adjusted margin stood at $12 4 million registering a growth of 15, 7% over the same quarter a year ago in constant currency terms.
But as the brand continues to be a leader in the bus ticketing segment of the country and in future leveraging this to make a foray into existing ground transport services like intercity cabs.
Bookings etcetera as management both at age.
Adjusted margins for other businesses during the reported quarter and stood at $5 $7 million witnessing an increase of 13, 6% over the same quarter last year in constant currency terms.
Moving onto operating costs, we continue to be prudent with our variable spend, especially the customer acquisition cost marketing and sales promotion expenses stood at about four 5% of gross bookings compared to five 6% in the previous quarter overall.
Overall with domestic business recovery under the base, we are hopeful of international recovery gathering fees in the next fiscal year and there is the same we have launched the great Indian travel fee to net travelers to book early in the ongoing seasonally strong summer quarter.
While we continue to pursue organic growth, we keep looking for strategic acquisition opportunities to enhance our product portfolio or technical capabilities, we are well capitalized to be able to pursue such opportunities last month.
The acquisition of a majority stake in India, <unk> currency exchange platform by Forex.
He will help us in offering <unk> services towards <unk> as well as global customers with international travel reopening Forex services are showing early signs of traction and we expect growth momentum to increase.
Long travel with the horse faster here onwards.
We will continue to look prostate investment opportunities in the new growth areas that <unk> already talked about.
With that I'd like to turn the call.
For any Q&A.
Thank you Mohit.
Anyone who wants to ask a question to the management and please click on the <unk> option and <unk>.
Take the questions.
First question is from the line of Oliver to ADR of Morgan Stanley Cutoff, you can unload airliners.
Ask your question.
Hi, congratulations on great performance am I audible.
Gaslog.
Yeah. The first question is typically in a down quarter that we see an impact because all for various colleagues as we have seen competition getting more impacted than.
I'll make my tapes. So has that been the case in the current quarter, which is what led to the market share increase.
And how does that kind of played out in the hotel segment Ashwin.
Okay.
Yes, Hi, Bob maybe I can take that.
Yeah, I guess historically, you know perspective, when we look at all the number when you just compare it from the market that probably is the case and I think it's a testimony of the fact.
Longstanding things presence of the brand.
Across the segments that we have.
And how do we treat that we also have on our platform.
Now as I was mentioning in this script RFP created about 70% plus right. So.
Obviously that is what we have seen as a trended historically.
As far as this reported quarter is concerned.
I guess, we will wait and see.
And it might as well be the case as well.
Sorry. The second question is with respect to some of the partnerships that you talked about the day to get some color on what kind of traction that we are seeing that.
And how different it is from historical partnership that we have had and were not material progress happen.
Do you expect this to really become at some point in time.
Yes, again, a good question Laura No I would say specifically if you were referring to my affiliate partners sort of a program. It's a partnership that we had with the Amazon.
Amazon pay that we've gone live with and we very recently gone live with the phone pay as well as <unk>.
Highlighted deal the objective of these partnerships are.
Essentially trying to ride on the <unk>.
Sort of broader and wider customer reach.
Now on to the deeper India.
These platforms here by virtue of them being in those categories right. So Richard Smith, clearly sort of reaches two or tier three tier four cities as well so that the early.
Sort of trends that we've seen on.
The numbers happening on these platforms.
Clearly we have seen one that we've seen new user contribution coming in more and more from tier three and four cities, which is very encouraging which is exactly what was our objective as well.
And and we have seen decent traction on.
The absolute number of sort of booking gone so coming in from these platforms.
Actually Amazon pay because.
We've just sort of gone live.
Recently and in.
The subsequent quarters, we will be we should be able to share more color on that but as far as Amazon pays concern I guess one difference.
From the past maybe.
Some of the similar sort of our.
Partnerships that we had.
This time around the integration is depo and with our brand so from a consumer point of view when they go on Amazon <unk> basically.
In the main effort of make Mitra brand pretty much the same UI same product experience because because thats what its control.
From a pricing standpoint.
It's effectively from a consumer point of view the transaction is happening on make my trip. So so the reliability or the trust in the brand that has been there on the mix might review get naturally.
Along with sort of riding on to the <unk>.
Broader base of traffic on these platforms.
That's fairly classical glad to know that last question as to more hit on you know how should one think about the advertising and sales promotion expenses, especially in a normalized environment.
I wouldn't assume that it kind of showed increased from the car.
Current levels, where you were not required to spend so much.
And the competitive intensity to little bit increased.
Compared to a down quarter like the March quarter.
Yeah, and you've seen that variability in the in the <unk>.
And the multiple quarters that we've reported even during the current fiscal year.
The recovery was was kind of better in Q3, and therefore, the spend was slightly higher and the recovery in Q4. It was was marred by the omicron barrier and therefore, we've kind of seen much lower kind of not only absolute expense, but also lower marketing and promotional expenses as a percentage of gross bookings. So I think we.
Continue to.
Kind of going to keep this a broadly in line with the growth momentum of the recovery momentum.
Once we kind of you know robustly overall is kind of in a pre pandemic levels. Both on domestic and international I think we'll have a much better kind of you know competitive versus the pre pandemic kind of you know.
Expense level, which is about 9% to 10%.
Indeed indeed.
In the current trending we don't see this really kind of an employee anywhere beyond say, the six and the highest 7% mark but again too early to call. It out like I said.
We'll take a step at a time at least now that the benefit of close to.
Complete recovery on the domestic side. The fact that we are kind of I know this is a larger part of the business and the cost of alternative operating the business.
Even prepayment in Houston with domestic considering that domestic is completely come back and we are able to see significant.
Directionally in the in the customer acquisition cost.
I have reason to believe that we'll be able to kind of do a similar.
Kind of an efficiency improvement even on the international side of the business. So overall, the timing should not getting very differently.
Quarter to quarter the numbers were.
Based on actual activity.
Great. Thanks, a lot and all the best thank.
Thank you Laura.
Got it.
The next question is from the line of Vishal Potshot, you cannot niche assets and ask a question.
Yeah.
Forgive me can you protect yourself I hate the question is on the.
Hotels as well as the bus in terms of the growth that we've seen on the metric.
Metric site. So hotels is just about 2% to 3% growth in muscle actually a drop can you just explain what is happening there because I believe the market should probably be great faster than that.
But maybe I'm wrong.
Yes, maybe I can interpret from the observation is not off percent, but the reason is and even if you look at even historically you would always see that.
The overall recovery coming out of the waves. This quarter My view as we highlighted was actually January February large part of the quarter was impacted by only growing and when we see the recovery. The first segment to recover is always slides and then it starts.
And then on the titles and then by sort of a fall in place.
And then specifically for bus.
It is also a function of <unk>.
We were also highlighting in the script.
It was also a function of some of the use cases, which is effectively.
A link to the.
Office going deeper which is effectively linked to the opening of the offices, which has happened only very recently.
And that and there are some specific reasons why it takes a little bit more time, there's a lag effect for bus recovery.
And which is exactly what we are seeing in current quarter. So it <unk>.
Just a matter of.
This recovery happening with a little bit of a lag effect, both for hotels and bus and nothing else and.
We are currently seeing that robust recovery coming on both hotels and bus in the current quarter.
Okay.
Thanks for that and get that question a lot of systems with profitability site any new parts items. So how much module to be Walter G by when because.
You would obviously know tests what is happening globally in terms of investor expectations are rising in terms of a higher profitability so not.
And kind of working forever.
Any costs that you have.
So Paul maybe in April guidance on that.
Represent maybe I can take that and I'm just kind.
As the world color that is secured on the previous question. There's also wanted to call out there.
It's really the only.
And say like we have been seeing the recovery has been a bit slow in the budget segment of hotels.
As you will recollect close to about 50% of our volumes as to comment on the <unk>, where we are seeing gradual recovery, whereas if you actually look at the mid to the premium segment I think we kind of already sitting at.
Close to pre pandemic are higher than pre pandemic trained up and the volumes.
So that's one of the reasons why the overall recovery, particularly on the segment side kind of because of the volume numbers under budget that much more.
The recovering local needs new date and hotels because of the of the partner segment per se in fact be recovery in gross bookings is much better than it is than it is on the segments right.
For the same reason either on this call at all.
On the unprofitable <unk> like you will have seen I think to the year at least.
Guidance for the last fiscal year was that.
Shifting the kind of weird.
And we are seeing on the pandemic started in last year's war to pandemic wave.
One in the first quarter and the second overlapping between the third and fourth.
Carload was as you would like to be in that.
Plus or minus $10 million range.
Oh, Hi, Vectren quarters could see small negative registered operating losses, whereas.
The good quarters on recovery.
We could possibly at the top end of the Iranian EQT this quarter, although the last two quarters, you've kind of beaten the top end of the range of $10 million.
This quarter was also higher than the previous quarter was us, Ohio. So I think on the on the fact that we would like to accelerate.
The profitability I think we've kind of seen that come through.
I think now it's going to be a more a question of <unk>.
Turning to drive back.
100% recovery in pulling on the international side and also the growth momentum beyond the pre pandemic levels and by doing so I think we'll be more focused on ensuring that the operations remain profitable.
We don't really kind of add in a hurry in terms of driving.
Profitability as a percentage of gross bookings I think if you kind of.
We're able to get to even.
Mid single digits.
Profitability on the on the on the.
On the electric side that could be embraced on it's kind of in a much better off.
If you see on gross bookings kind of in a way to view it as a blended margin of about 11% currently.
Adjusted operating profit is that kind of.
More than one percentage point.
I think even if we kind of are able to maintain this level.
Those at this point level, a bit about that should trend well and allow us to kind of keep reinvesting behind growth and keep reinvesting the IMD.
Doesn't mean years of future growth.
Carlo.
And we just I mean I could send.
I mean, you have been in the business for 20 years, and you have to kind of make a deal.
<unk> profit and the net bottom line.
There would come a point, where maybe you're allowed to get disrupted and we would rather that you kind of make some nice cash profits.
Further to that until it happens so I mean, there is that maybe a life time window, okay, great well the competition is little bit when they travel is recovering.
When the hotels and airlines want these customers to come in because then you could be looking to make profits.
And they will not kind of lost but that's the only because it can be higher.
No of course.
Partly to kind of even look at it now.
While the business has been in operation for 20 years for all practical purposes. The other demand.
The business started only about the PC seniors back and within that you can see the.
The business, which is kind of predominant at that point in time, because as the air ticketing.
It is probably.
As profitable.
As the as the behemoth in the OTR market globally.
Whereas if you look at some of the other segments beyond air ticketing hotels et cetera, we have been in that segment only for about five to seven years for all practical purposes, and therefore build.
<unk> due to mix of the business now is coming in from non air ticketing segments and business analytics.
<unk> been kind of like I said been only in play for the last seven years, and therefore, they need time to deliver that into mature phase of profitability, but they'll definitely get there you know would be over the time period of the 10 to 20 years. If you are looking at so I think there is a short update on the other segments air ticketing clearly.
Comparable Amazon that already some of the other segments will get onto that pot and overall digit profitability higher.
These are the blended business.
Alright, thank you.
Oh.
Thank you Pasha and the next question is from the line of Legit Chen of city, which if you can please UN mute yourself and ask your question.
So my first question is any impact are you seeing in your customer acquisition costs from our new App the privacy rules.
And do you have any sense also.
Any impact that could happen from whatever Google might do.
And related to that.
Do you think that impact.
Some of your global competitors like booking Airbnb should they decide to come back into India at some point now that international is the company.
Yes, Hi, Richard maybe I can take that on the first question. The answer is no. We haven't really seen any impact yet and we'll watch this space as it goes.
And it's also the fact that as we've been sharing earlier as well that we do have a very high share of direct traffic that ex large hog getting traffic on our platform given the fact that the brands have been pretty strong.
Over the years and this is across all three brands that we have.
So the short answer is so far we haven't really seen any impact and we'll see how it goes.
As far as your second part of the question is concerned.
Booking dot com and expedia or any of the international Otas until they have been around I mean, they have been around for many years and maybe during the pandemic. The focus was given the international borders are not really open up our focus was more on their core markets, but for the last couple of quarters there.
Our active and they will continue to be.
Sort of active.
In the domestic market as well.
And from our point of view on our strategy and execution roadmap is pretty focused on continuous so continuously sort of keep improving the customer experience, making sure that the supply of depth as they're making sure that our penetration goes to tier three tier four cities. There are a bunch of investments that we made.
During the pandemic.
Sort of going out and reaching out to the different demand segments as we highlighted.
Even non direct <unk> segments et cetera, all of these investments that we've made in the last couple of years.
Are only going to help. Additionally, it's also.
All the adjacent case is that we have.
We have sort of invested behind toolkit money and now all of them are just going to <unk>.
Help us get more and more new users and more and more established.
Our brands further on consumers' mind in terms of.
Just the comprehensive Shaw for travel use cases of all kinds and even enabling.
Travel use cases, including consumer lending and so on so.
I guess, we will continue to keep staying.
Staying focused on or not.
In executing our strategies.
And can a healthy competition is always welcome and we'll keep sort of dealing with it.
Thanks, I guess my second question is on <unk>.
On the affiliate program that you talked about so first Josh.
Is that across all segments already that is bus screen as it is hotels and a related question to that is you mentioned <unk> I'm just curious given that on pay as a part of slip guide which has clear trip.
How does that work in that sense.
Interesting.
The first part of your question is is going to start with flights and hotels.
And we can always add more services as we go along.
To start with a discussion our annual sales, we do have read both independently by the Repowering Amazon pay even before this.
Just make my trip.
Affiliate of alliance that we hired and so the buzzwords already bear buzzwords already there on form payers, while we don't have real yet, but potentially we can add and maybe we can add the underground transport et cetera, as well as as we go along.
And the.
The second part of question, which is you know.
Operationally other way cellphones and Kurt.
Sort of run are being run completely independent entities irony, there was absolutely no.
Im sort of concerned their different business models different differently and independently run outfits and there were no concerns because we were in any case using <expletive> pig, even historically just to get the new user acquisition from them like many other players in the market would be using them.
And this was an opportunity to see if we can sort of exclusively powered.
Them from.
From <unk> standpoint, and subsequently hotels as well.
And therefore, we went ahead and deliberate but we don't have any any sort of such concerns.
<unk> bin.
Having the same ultimate ultimate parent and so on.
Alright. Thanks.
If I can just switch.
And then one final question you mentioned some of these investments during the pandemic right now they're just sorry. If this is already clarified in the filing but I see your net cash generated from our used in investing activities of 119 million for 2021.
78 million in 2022.
If you could give a broad stroke will reward dishes.
Yeah.
Well it maybe.
Maybe maybe if you could do bigger and as a follow up yeah, yeah sure.
Thanks, Tom.
Thank you that those are the questions.
Thank you Richard.
No question.
As such in the chip such an unit. Please ask your question.
Sure INR dasher and Mona Thanks paradigm.
I have a quick question on the cost side, so customer behavior and customer life. So one like if you can provide some color on an empty black program, how long theyre going on like our customer willingly paywall, it's mostly getting passed on us.
Like.
I know.
Manuel cost with the credit card can answer Joe Secondly.
You do it like do you have any color on the wallet share that the customer is spending on them.
I believe one but I need to let I'll, let you.
On the one on the wallet share that the EBITA loyal make my good question, but it's been quite good.
Secondly, your voice was breaking but I heard part of your question and I think it was to do with our loyalty program Black program, and let me try and address that.
So our group loyalty program Black <unk> black on.
Our trip and go try it so I'm glad we believe is actually doing very well.
I think overall over the years from alarm from all the learnings in the past we've been able to effectively crack the code on the loyalty program or an intermediary like us.
Now working quite effectively we continue to keep growing the number of users.
And I can give you just one sort of data point that would support that.
You said.
Our repeat rate.
On in general overall platform versus the repeat rate coming from the black.
Our loyal members.
Coming from a black oil remember, there's about 20% higher than the normal non black members, so which is.
Sort of a good measure to test how the block.
Graham, it's working effectively or not so clearly from a consumer behavior standpoint, when they see the value when they see the value the real value tangible value coming through.
As part of the loyalty program. There is there is clearly an attraction to that program.
Sure.
The next question that I had was on the customer wallet share color.
Any context on how much the wallet share that the customer spending on make market.
Yes, no I think it's a very good question.
And part of the the reason why we are a comprehensive show up is that the goal behind the scene is to get more and more wallet share footprint practically every travel use case.
And that the customer might have.
So just to give you an example.
From a cross sell up sell standpoint, we see a lot of the flight because <unk>.
End up buying hotels with us and vice versa.
And lot of the.
Of late we've been acquiring a lot of the new users on our rail platform and from rail platform. We have started to now very effectively sort of also.
I'll put a buffet the cross sell auction as well for a lot of the let's say for example.
It lifted customers on rail, which is a like a very big use case in India.
And then you end up doing that so.
And so basically what we are trying to do is to from a customer point of view pay per view.
With the customer at the center and think about possible every travel use case that he could be.
Would need from his point of view, while she would mean from our point of view in that session or in the subsequent sessions or during.
During the course of the time right, so and will we be able to sort of address every possible need or not.
And.
The direct output of that would be that we will get more and more wallet share from one particular customer over time, that's really the idea.
We haven't really.
Have any sort of.
The X <unk>.
Fuel wallet share.
On a reported out but over the over the next.
Now a few quarters when we have more data on this given that the cross sell and upsell is effectively picking up across the platform, we should be able to give more color on that.
Okay.
Thank you.
Thank you Sachin and if anyone has a question. Please raise your hand otherwise.
No no other person in the queue.
Just wait for a few more seconds if anyone has any questions.
Okay.
Alright. Thank.
Thank you very much we have no more question sluggish in Q. So.
We can end the call with your closing remarks.
Alright. Thank you everyone. Thank you for your time.
The call today.
Stay safe and healthy thank you so much.
Thank you you may please disconnect.