Q4 2024 MakeMyTrip Limited Earnings Call
Vipul Garg: Hello, everyone. I'm Vipul Garg, Vice President, Investor Relations at MakeMyTrip Ltd. And welcome to our fiscal 24, fourth quarter, and four-year earnings webinar. Today's event is hosted by the company's leadership team comprising Rajesh Magow, our co-founder and Group Chief Executive Officer, and Mohit Kabra, 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 Araya website shortly after the conclusion of today's event.
Hello, everyone I'm were pretty dark Vice President Investor Relations at make my trip limited and welcome to our fiscal 'twenty for fourth quarter and full year earnings Webinar today's event hosted by <unk>.
Speaker Change: Company's leadership team comprising Rajneesh model, our co founder and group Chief Executive Officer, and Mohit <unk>, Our group Chief Financial Officer. As a reminder, this life event is being recorded by the company and.
Speaker Change: Oh 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.
Vipul Garg: At the end of these prepared remarks... We will also be hosting a Q&A session. Furthermore, certain statements made during today's event may be considered forward-looking statements within the meaning of the safe harbor provision of the U.S. Private Security Litigation Reform Act of 1995.
Speaker Change: Hum.
Speaker Change: 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. Direct to guaranteed litigation Reform Act 90 95. These statements are not guarantee of future performance are subject to inherent uncertainties and act.
Vipul Garg: These statements are not guarantees of future performance, are subject to inherent uncertainty, and actual results may differ materially. Any forward-looking information relayed during this event speaks only as of this date, and the company undertakes no obligation to update the information to reflect changes in circumstances. Additional information concerning these statements is 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 25, 2023. Copies of these filings are available from the SEC or from the company's investor relations department. I would now like to turn the call over to Rajesh. Thank you.
Speaker Change: Results may differ materially any forward looking information relayed 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 Companys annual report.
Speaker Change: On form 20-F filed with the SEC on July 25th to anybody.
Copies of these filings are available from the SEC or from the company's Investor Relations.
Department I would like now turn the call over to Roger.
Roger: Thank you.
Roger: Yeah.
Rajesh Magow: Welcome everyone to our fourth quarter and full year call for fiscal 2024. Fiscal year 2014 started on a positive note and only got better over the year.
Roger: Thank you everyone.
Roger: Welcome everyone to our fourth quarter and full year call for fiscal 2024.
Roger: Fiscal year 'twenty four started on a positive note.
Rajesh Magow: We are very pleased to end the year delivering a strong QPo performance despite it being a low seasonality quarter for leisure travel. Fiscal year 24 has been a year of many record milestones. For the full year, we crossed an all-time high gross booking value of $8 billion, and we posted a record-adjusted operating profit of $124 million compared to an adjusted operating profit of $70 million in fiscal year 2023. Our strategy of targeting various demand segments to serve millions of our customers and first-time travelers with a comprehensive portfolio of travel and ancillary products with personalized experiences is yielding results. Gross booking value for Q4 was more than $2 billion, growing 23% year-on-year in constant currency terms, and the adjusted operating profit was $32.4 million, registering a growth of over 70% year-on-year.
Roger: When you're going to break out over the year.
Very pleased to enter your delivering a strong Q4 performance despite it being a low seasonality portfolios you're traveling.
Roger: Fiscal year 'twenty four has been a year of many record milestones for.
Roger: For the full year, we crossed an all time high gross booking value of $8 billion and we posted a record adjusted operating broker golf on it and $24 million compared to an adjusted operating profit of $70 million in fiscal year 'twenty three.
Roger: Our strategy of targeting various demand segments, so millions of our customers and first time travelers with a comprehensive report.
Roger: Traveling to lead products with personalized experiences are yielding results.
Roger: Cross booking value for Q4 with more than $2 billion growing 23% year on year.
Roger: In constant currency terms and they're just good operating profit was $32 $4 million registering a growth of over 70% year on year.
Rajesh Magow: There are several macro factors that are contributing to the growth of travel and tourism in India. Robust GDP per capita growth is leading to growth in disposable income, fueling more frequent leisure breaks by people. Ongoing investments in transport infrastructure, including airports, roads, railways, and public transportation, have improved accessibility and the travel experience to various tourist destinations within the country. Spiritual tourism is also emerging as a crowd puller in the domestic travel and tourism market.
Roger: There are several macro factors that are contributing to the growth of travel and tourism in India robust GDP per capita growth is leading to growth in disposable income fueling more frequent leisure breaks by people ongoing investments in transport infrastructure, including airports roads Railways and public transportation.
Roger: I have improved accessibility and travel experience to various tourist destinations within the country.
Speaker Change: But true spiritual tourism is also emerging as a crowd puller recently in the domestic travel and tourism market in the last two years, we have witnessed over 97% growth in search is supposed to be a truly destinations on our platform.
Rajesh Magow: In the last two years, we have witnessed over 97% growth in searches for spiritual destinations on our platform. With further improvement in connectivity and infrastructure, we expect this category to be a long-term growth driver. According to the Ministry of Tourism, religious tourism in India is on an upward trajectory and can potentially grow at a figure of over 16% between 2023 and 2030.
Speaker Change: With further improvement in connectivity and infrastructure, we expect this category to be a long term growth driver.
Speaker Change: According to the Ministry of Tourism and leisure tourism in India has been on an upward trajectory and can potentially grow at a good off over 16% between 'twenty three and 'twenty suite 2030.
Rajesh Magow: According to WTTC, the overall travel and tourism sector will grow its contribution to GDP to INR 36.8 trillion by 2033, approximately 7% of the Indian economy, and will employ over 58.2 million people across the country, with 1 in 10 working in this sector. As a travel services company in India, we continue to seek collaborative opportunities to work closely with various government agencies as we strive to nurture the growth of the tourism ecosystem in the country.
Speaker Change: According to W. E T C. The overall travel and tourism sector will grow its contribution to the GDP to INR. So disappointed trillion by 2033.
Speaker Change: Approximately 7% of the Indian economy, and will employ over $58 2 million people across the country with one and then working in this sector.
Speaker Change: And travel services company in India.
Speaker Change: We continued to see collaborative opportunities to work closely with various government agencies as we strive to nurture the growth of the resume ecosystem in the country with.
Rajesh Magow: We recently signed MOUs with the state governments of Goa and Madhya Pradesh aiming to foster sustainable tourism development in both states. The collaborative effort with Goa aims to propel tourism in the region into a vibrant year-round destination, moving beyond its iconic sun, sand, and beaches. The MOU with Madhya Pradesh focuses on various dimensions of tourism, including promoting home stays and intensifying the focus on pilgrimage and wildlife-led travel experiences that the state has to offer through its platform.
Speaker Change: We recently signed and will use with state governments of Guar and Monday Pradesh, aiming to foster sustainable tourism development in both states. The collaborative effort with Gore aims to propel tourism in the region into a vibrant year round destination.
Speaker Change: Moving beyond its iconic Sunshine and beaches.
Speaker Change: The Mou with Madhya Pradesh focus on video dimensions of tourism, including promoting homestead and intensifying.
Speaker Change: The focus on pilgrimage and wildlife led travel experience.
Rajesh Magow: While the domestic travel and tourism sector is showing a promising outlook, outbound travel is likely to continue in the growth phase this year as well. According to the UN World Tourism Organization, India is one of the top three fastest growing outbound tourism markets and is expected to become the fourth largest global spender on travel by 2030. With India's emergence as a key source market in major tourism destinations, foreign tourism boards are targeting the Indian population with incentives, campaigns, simplified visa requirements, and new initiatives to attract more Indian outbound travelers.
Speaker Change: The state has to offer to its platform.
Speaker Change: While the domestic travel and tourism sector is showing a promising outlook outbound travel is likely to continue in the growth phase this year as well.
Speaker Change: According to your window of Tourism organization, India is one of the top three fastest growing outbound tourism market and is expected to become the fourth largest global spend around travel by 2030.
Speaker Change: We didn't hear the emergence as a key source market and major tourism destinations foreign tourism boards are targeting the Indian population with incentives campaign simplified visa requirements and new initiatives to attract more Indian outbound travelers.
Rajesh Magow: Let me now turn to the business segment, starting with our air-ticketing business. Our international air ticketing business registered a strong growth of 33% year-on-year in this quarter, while we continue to maintain our market share of 30% plus in the domestic air business. During Q4, the total number of departures was similar to Q3.
Let me now turn to the business segments, starting with our air ticketing business.
Speaker Change: Our international Air ticketing business I, just heard a strong growth of 33% year on year in this quarter right.
Speaker Change: While we continue to maintain our market share of 30% plus in the domestic business.
Speaker Change: During Q4, the total number of departures were similar to Q3 as we mentioned last quarter, we expect the domestic supply situation.
Rajesh Magow: As we mentioned last quarter, we expect the domestic supply situation to gradually start improving from the second half of the upcoming financial year. Keeping aside the short-term headwinds, the long-term outlook for the Indian aviation sector is robust, driven by the expansion of aviation infrastructure as well as record planes ordered by Indian carriers. On the customer experience side, we continue to innovate and enhance our product proposition. We have expanded our flexibility offerings on domestic flights by offering consumers a new add-on called FlexiFly, which enables customers to have a choice of exercising either zero cancellation or free date change. Option at a nominal incremental cost.
Speaker Change: To gradually start improving from the second half of the upcoming financial year keeping.
Speaker Change: Keeping aside the short term headwinds the long term outlook for the Indian aviation sector is robust driven by the expansion of aviation infrastructure as well as record planes ordered by the Indian carriers on.
Speaker Change: On the customer experience side, we continue to innovate and enhance our product proposition, we have expanded our flexibility offerings on domestic flights by offering consumers a new add on called Flexi fly, which enables their customers to have a choice of exercising either zero cancellation on freedom.
Rajesh Magow: We have also revamped our value-added bundles to support more inclusions such as seats, meals, cabs, priority check-in, etc., along with our existing products like zero cancellation and free day change. This has helped make these bundles more accessible to our customers. To further strengthen our international outbound proposition, we launched a new initiative called Visa Guarantee, which ensures a full refund of the flight fare to the customer in case the visa gets rejected by the embassy for some reason.
Speaker Change: Option at a nominal incremental cost.
Speaker Change: We also revamped our value added bundles to support more inclusions such as seats means gaps Friday check in et cetera, along with our existing products like zero Cancelation and for you to change.
Speaker Change: This has helped make these bundles more accessible to our customers to further strengthen our international outbound proposition, we launched a new initiative called visa guarantee which ensures.
A full refund of the flight flight fed to customer engaged the visa gets rejected by the embassy by some reason.
Rajesh Magow: Our accommodation business, which includes hotels, homestays, and packages, witnessed strong 41% year-on-year growth in adjusted margin in constant currency terms. The outlook for hospitality in India continues to be strong, with most global and local chains sharing ambitious targets of signing more properties, especially in Tier 2, Tier 3 cities. In the last couple of quarters, large domestic and international chains have announced plans to add over 650 properties in India on a current base of over 1,000 properties.
Speaker Change: Our accommodation business that includes hotels home stays in packages witnessed strong 41% year on year growth in adjusted margin in constant currency terms the outlook for hospitality in India continues to be strong with most global and local chains have shared ambitious targets of signing more properties, especially.
Speaker Change: Leanne tier two tier three cities.
Speaker Change: In the last couple of quarters large domestic and international teams, who have announced plans to add over 650 properties in India on a current base of over 1000 properties.
Rajesh Magow: We expect strong additions to the hotel inventory across categories in the future. We will continue to increase our supply. We now have 84,000 plus sellable properties on our platform with an unmatched penetration covering over 2,000 cities in India. Our international outbound business continues to scale during the quarter. We sold room nights spread across about 25,000 hotels in over 156 countries outside India. We will continue to dialogue and negotiate in international geographies frequented by Indians in the new financial year as well.
<unk> strong additions in the hotel inventory across categories in the future.
Speaker Change: We continue to increase our supply.
We now have 84000, plus sellable properties on our platform with an unmatched penetration covering over 2000 plus cities in India.
Speaker Change: Our international outbound business.
Speaker Change: Continues to scale during the quarter, we sold room nights per day crossover about 25000 hotels in over 156 countries outside India.
We will continue to dialogue direct contracting in interaction geographies frequented by aliens in the new financial year as well <unk>.
Rajesh Magow: During the year, we successfully launched our hotel products on the ICTC website with an encouraging initial response. Through platforms such as ICTC, Amazon Pay, HDFC Smart Buy, and MyPartner platform, we continue to attract new users from smaller cities. On the customer experience side, we made significant strides in the integration of AI within our accommodation business. Now we offer condensed reviews, empowering our customers with crisp summaries. This enhancement enables swift property selection and furnishes instant insights into each property's offerings.
Speaker Change: During the year, we successfully launched our hotel products.
Speaker Change: S DTC website with an encouraging initial response.
Speaker Change: Through platforms, such as ICT see Amazon pay H Dfc smart buying my partner platform.
Speaker Change: We continue to attract new users from smaller cities.
Speaker Change: On the customer experience side, we made significant strides in the integration of AI within our accommodation business now we offer a condensed reviews empowering our customers with crisp summaries.
Rajesh Magow: On our international hotel platform, we continue to improve the experience for Indian travelers by making the discovery and selection easier for them by scoring properties that are high on parameters like proximity to public transport, Indian food, and tourist attractions. Our homestay business continues to grow with increasing coverage of destinations and increasing customer awareness via our category building marketing efforts. During the quarter, we sold over 16,500 plus unique properties across 800 plus unique destinations, with strong growth across business and leisure destinations.
Speaker Change: This enhancement enables swift property selection and furnishes instinct insights into each property's offerings on our international Hotel platform continue to improve the experience for Indian travelers by making the discovery and selection easier.
Speaker Change: For them by scoring properties that are high on parameters like proximity to public transport Indian food and tourist attractions.
Speaker Change: Our homestay business continues to grow with increasing coverage of destinations and increasing customer awareness my our category building marketing efforts during the quarter, we sold over 16, and a half thousand plus unique properties across 800, plus unique destinations with strong growth across business and leisure destinations.
Rajesh Magow: While MakeMyTrip has been leading the way in the homestay and villas category, we have now kicked-started the journey on Goibibo as well and have rolled out multiple features for homestays, enabling richer information on food and dining, host discovery, etc.
Speaker Change: While mcmurtry brand has been leading the way in the home stay unrealized category. We have now kick starting the journey on <unk> as well and have rolled out multiple features about homestead are enabling richer information on food and dining horse discovery et cetera.
Rajesh Magow: Our holiday packages business continues to scale, driven by our innovative offerings, such as launching charter services to Bhutan from Mumbai, which is a key source market. Customer service is an important aspect of the holiday business, and we've been making continuous efforts to improve the post-sales experience. Our NPS on holidays is steadily increasing, which will improve our repeat rate in the business. Our business continues to grow well driven by strong demand and expansion of supply, with the total number of average daily bus services on the platform reaching 35,100 from 27,800 a year earlier and an increase of over 26%.
Speaker Change: Our holiday packages business continues to scale driven by our innovative offerings, such as launching charter services to bolt on from one way, which is a key source market customer service is an important aspect of the holiday business and we have been making continuous efforts to improve the post sales experience.
Speaker Change: N P. S on holidays is steadily increasing which will improve our repeat rate in the business.
Speaker Change: Our business continues to grow very driven by strong demand and expansion of supply with the total number of average daily bus services on the platform, reaching 35100 from 27800 a year earlier.
Rajesh Magow: With demand keeping up and diesel prices cutting, aiding the profitability of the sector, the momentum to add new buses and supply has improved, and we hope it will continue in the new financial year as well. By providing database intelligence to bus operators for the deployment of this additional supply to routes that have a high demand but fewer services, we are playing our part in their network plan. International bus markets witnessed healthy growth in Q4-24 on the back of Ramadan bookings in Southeast Asian markets and Good Friday Easter holiday bookings in Latin America. We launched RedBus in two new international markets this quarter. We went live in Vietnam on all channels with both English and Vietnamese booking funnels.
Speaker Change: An increase of over 26%.
Speaker Change: With demand keeping up and cutting diesel prices aiding the profitability of the sector. The momentum the momentum to add new buses and supply has improved and we hope it will continue into the new financial year as well.
Speaker Change: By providing database intelligence to bus operators for deployment of this additional supply to routes that have a high demand, but fewer services. We are playing our part in their network planning.
Speaker Change: International bus market witness healthy growth in Q4 24 on the back of Ramadan bookings in Southeast Asian market and good Friday Easter holiday bookings in Latin America relaunch grade burst into new International markets. This quarter, we went live in Vietnam on oil tenants with both English and Vietnamese booking funnel.
Rajesh Magow: We also launched our services in Cambodia with inventory from 30 plus bus operators flying on routes within Cambodia as well as to cities in Thailand and Vietnam. Our real business continues to grow. We continue to innovate, add product features, and strengthen our value proposition. As a result, we continue to gain market share in train bookings, leveraging all our brands, including MMTGI and others. On intercity cabs, we continued strengthening the supply side coverage during the quarter. We have progressed well on our integration with Savari post the investment announced last quarter.
Speaker Change: We also launched our services in Cambodia with inventory from 30, plus bus operators playing on routes with within Cambodia, as well as two cities in Thailand and Vietnam.
Speaker Change: <unk> business continues to grow and we continue to innovate add product features and strengthen our value proposition as a result, we continue to gain market share in crane bookings leveraging all our brands, including M. T. G I F.
Speaker Change: An intercity cabs, we continued strengthening the supply side coverage during the quarter.
Rajesh Magow: Working together, we are confident of unlocking the growth potential in this segment. Our corporate travel business, via both our platforms, MyBiz and Quest2Travel, is witnessing strong growth. Our active corporate customer count on MyBiz is now over 56,300 plus, and for Quest2Travel, the active customer count has reached 351 large corporates compared to 249 customers on March 23. We have further bolstered our service offerings by incorporating train bookings into our MyBiz platform as well. To tailor the booking experience even more closely to individual preferences, we have introduced personalized hotel recommendations, streamlining the discovery process for our corporate bookers.
Speaker Change: We have progressed well on our integration with somebody who's staying with sprint announced last quarter working together, we are confident of unlocking the growth potential in this segment.
Speaker Change: Corporate travel business via both our platforms my bids in quest for traveling is witnessing strong strong growth our app.
Speaker Change: <unk> corporate customer count on my visit now over 56300, plus and for Questar travel the active customer count has reached 251 large corporate compared to 249 customers in March 'twenty three.
Speaker Change: Further bolstered our service offerings by incorporating train bookings into our <unk> platform as well.
Speaker Change: To tailor the booking experience.
Speaker Change: Even more closely with individual preferences, we have introduced personalized recommendations streamlining the discovery process for our corporate Lucas.
Rajesh Magow: Our MyPartner B2B2C platform for small travel agents now has 44,000 plus travel agents compared to 36,000 agents during the same period last year and is helping us reach out to customers who are largely buying their travel offers. This is particularly meaningful in the case of segments with low online penetration, such as international outbound travel. And lastly, from my side, at MakeMyTrip, we believe that focusing on sustainability is essential for the long-term success and resilience of travel companies, as it not only protects the environment and supports local communities but also enhances brand reputation, meets customer expectations, and ensures regulatory compliance. Our social development arm, MakeMyTrip Foundation, is dedicated to climate action and community empowerment and has helped us make a substantial impact across 13 Indian states, positively affecting the lives of over a million individuals.
Speaker Change: My partner B to B to C platform for smaller travel agents now has 44000 plus travel agents compared to 36000 agents. During the same period last year and is helping us reach out to customers, who are largely buying their travel offline Mrs.
This is particularly meaningful in the case of segments with low online penetration such as international outbound travel.
my trip: And lastly from my side and make my trip, we believe their focus on sustainability is essential for the long term success and resilience of travel companies.
my trip: Is it not only protects the environment and sports local communities, but also enhances brand repetition meets customer expectations and ensures regulatory compliance.
my trip: Social development arm make my trip patient is dedicated to climate action and community environment and has helped us make a substantial impact.
my trip: 13 Indian states positively affecting the lives of over 1 million individuals.
Mohit Kabra: The details of our initiatives are available on MakeMyTrip Foundation's website. With this, let me now hand over the call to Mohit for the financial highlights of the quarter. Thanks Rajesh and hello everyone.
Sales of our initiatives that are available on make moderate foundation's website.
my trip: Let me now hand over the call to Mohit for the financial highlights of the quarter.
Mohit Kabra: During the last few years, we have invested in key strategic areas such as building wider and deeper offerings of travel and travel-related services for our customers with improved personalization, while scaling up multiple B2C and non-B2C platforms so that we can target differentiated demand segments. We have also been investing in technology to build efficiencies and increase our value proposition to our customers. As a result, our business has bounced back strongly from the pandemic and has also delivered better on profitability metrics.
Mohit: Thanks, Rod and Hello, everyone.
Mohit: During last few years.
Illustrating the key strategic areas, such as building wider and deeper offerings of travel and travel related services for our customers. These include personalization wireless scaling of multiple <unk> and non BDC platforms.
Mohit: We can Terry differentiator demand segments.
Mohit: We've also been investing in technology.
Mohit: <unk> and increase our value proposition.
Mohit: So much as it is that our business has bounced back strongly.
Mohit Kabra: Financial Year 2024 has been a true testament to this long-term strategy as we have delivered our best ever financial performance during the year across key metrics. Total revenue for the year was 216.7 million compared to a loss of 11.2 million in the previous financial year. This includes certain one-off items which I will talk about subsequently.
Mohit: Hoping to me and has also delivered a better on profitability metrics.
Mohit: Financially plentiful who's going to Testament to this long term strategy as we have delivered our best ever financial performance during the year across key metrics.
Speaker Change: With respect to the full year financial year, FY 'twenty before our gross bookings grew 24, 9% year on year in constant currency terms to about $8 billion.
As far as orders grew by 35, 7% year on year in constant currency.
Speaker Change: <unk> hundred $82 million.
Speaker Change: From about $593 million in the previous fiscal year roughly for the year was $216 7 million compared to a loss of $11 2 million in the previous financial year. This includes certain one off items, which I'll talk about subsequently.
Mohit Kabra: Keeping the one-off aside, the adjusted operating profit registered a very strong growth of 76.7% year-on-year and reached $124.2 million, compared to 70.3% in the previous financial year. As to the quarterly results for the reported fourth quarter of this fiscal year, gross bookings grew by 23% year-on-year in constant currency to about $2 billion, compared to $1.7 billion in the same quarter last year. Revenue as per IFRS grew by 38.1% year-on-year in constant currency terms to $202.9 million from $148.5 million in the same quarter last year. Adjusted Operating Profit registered a growth of 70.4% year-on-year and reached a number of $32.4 million during the quarter compared to about $19 million in the same quarter last year.
Speaker Change: Keeping the one off the site stirred operating profit that I just started up very strong growth of 76, 7% year on year and reached $124 2 million.
Speaker Change: <unk> 273 so.
Speaker Change: In the previous financial year.
Speaker Change: This is the quarterly results for the reported fourth quarter of this fiscal year.
Speaker Change: Gross bookings grew by 23% year on year in constant currency to about $2 billion compared to $1 7 billion.
In the same quarter last year revenue has been asked of US grew by 38, 1% year on year and persistency dumped cause to earn $2 9 million.
Speaker Change: So $148 5 million in.
Speaker Change: In the same quarter last year.
Speaker Change: Operating profit is.
Speaker Change: Is there any sort of growth of 74% year on year and reached to a number of $32 $4 million.
Mohit Kabra: Moving on to our segment results, our 8 ticketing gross bookings for the quarter came in at $1.3 billion, witnessing an year-on-year growth of about 20.9% in constant currency terms. Registered margin is stored at $83.7 million, registering a growth of 13.7% year-on-year in constant currency. The take rates for the aid ticketing business continue to be in line at about 6.5%.
Speaker Change: During the quarter compared to about $19 million in the same quarter last year.
Speaker Change: Moving on to our segment results.
Speaker Change: Gross bookings for the quarter came in at $1 $3 billion, we can see any year on year growth of about 29% in constant currency terms.
Just imagine you sort of $83 $7 million registering a growth of 13 7 million, 37% year on year in constant currency.
Mohit Kabra: For domestic air ticketing, we delivered performance in line with the market and have continued to hold on to our market share of about 30%. The highlight of the quarter and the year has been the growth in the international air ticketing business, which posted segment growth of over 50% compared to the last fiscal year. The mix of international air ticketing businesses has also grown by about 50% during this year to about one third of the air ticketing segment.
Speaker Change: The take rates for the air ticketing business continued to be in line at about six 5%.
Speaker Change: Our domestic air ticketing.
Speaker Change: Performance in line with the market.
Speaker Change: We continue to hold onto our market share of about 30%.
Speaker Change: The highlight of the quarter and deal has been.
Speaker Change: The growth in the international Air ticketing businesses, which is postpaid segment growth of over 50% compared to the last three fiscal years the mix of international Air Ticketing business has also grown by almost 50% during this year.
Mohit Kabra: We believe that the international ticketing business will continue to lead the growth in this segment. For the quarter, in the Huddleton Packages segment, we were at $495.6 million, witnessing strong growth of 28.8% year-on-year in constant currency. Adjusted margin growth was much stronger at 41.3% year-on-year in constant currency, resulting in an adjusted margin of $88.9 million during the quarter. However, take rates in this business continue to be in line at about 7.9% during the quarter.
Speaker Change: About one third of the ticketing segment.
Speaker Change: We believe that these are I think ticketing business will continue to lead the growth in this segment.
Speaker Change: Gross bookings.
Speaker Change: For the quarter in the hotel and packages segment, one at $495 6 million witnessing a strong growth of 28.8% year on year in constant currency.
Speaker Change: Consistent margin growth was much stronger at 31, 3% year on year.
Speaker Change: In constant currency, resulting in an adjusted margin of $88 $9 million during the quarter.
Mohit Kabra: We continue to drive supply expansion by going deeper and wider in the Indian market and growing directly contracted hotels in key international markets which are of interest to Indian overseas travelers. Our coverage and penetration in India has expanded meaningfully, and we now sell accommodation room nights in over 1,800 cities across the country. The number of directly contacted international hotels has been increasing, in line with the launch of direct flights to new international destinations. This year, apart from offering wider options across existing cities, we have also initiated direct contracting in about eight cities globally.
Speaker Change: The take rate in this business continue.
Speaker Change: Continue to be in line and about seven 9% during the quarter.
Speaker Change: We continue resides supply expansion by going deeper and wider in the Indian market and growing directly contracted hotels in key international markets, which are of interest to Indian overseas travelers, our coverage and penetration in India has expanded meaningfully and we now sell accommodation room nights in over 1800.
Speaker Change: Cities across the country.
Speaker Change: Our directly contracted international Telecom has been increasing.
Speaker Change: In line with the launch of direct flight to new international destinations. This year apart from offering wider options across existing cities. We have also initiated direct contracting in about hcp's globally.
Mohit Kabra: In our bus ticketing business, gross bookings for the quarter were $260.6 million, growing at 23.3% year on year in constant currency. Adjusted margin stood at $26.1 million, registering a strong year-on-year growth of over 36.6% in constant currency terms. The take rates for the birth business continue to come in line at about 10% for the quarter.
Speaker Change: And our bus ticketing business gross bookings for the quarter were $266 million.
Speaker Change: Growing at three 3% year on year.
Speaker Change: In constant currency adjusted margin stood at $6 $1 million the extremely strong year on year growth of over 36, 6% in constant currency terms.
Mohit Kabra: A large part of the growth has been driven by supply expansion, whereby our private bus operator count has increased by over 20% year on year. Given the short-term headwinds on the domestic air supply side, we witnessed travelers moving up. Apart from this, continued operating leverage coming in from the significant fixed cost optimizations through the COVID-impacted years has helped us expand our operating margins over the last few years. As the business is scaling, our cash generation continues to be robust.
Speaker Change: The take rates for the business that continue to come in line and about 10% for the quarter.
Speaker Change: No. That's part of the growth has been driven by supply expansion, whereby a private bus operators call has increased by over 20% year on year.
Speaker Change: Given the short term headwinds on the domestic supply side, we witness travelers moving.
Speaker Change: We're putting other modes of transport, which was reflected in the strong growth in our ground transport segment.
Speaker Change: Continue to remain focused on operating cost efficiencies.
Speaker Change: Marketing and sales promotion expenses at our customer <unk> cost for the year came in at about four seven percentage points of gross bookings compared to five one percentage points in the previous year.
Speaker Change: Awesome. This continued operating leverage coming in from the significant fixed cost optimizations to the Covid impact areas has helped us expand out operating margins over the last few years.
Mohit Kabra: During the full year of fiscal year 2024, our registered operating profit was about $124.2 million, and we added net cash of about $121 million. As a result, our year-end cash position stands at over $600 million. Besides maintaining a healthy watch list, we will continue to leverage this strong cash position to invest in potential organic and inorganic niche growth opportunities, as demonstrated in the recent past. Apart from domestic air ticketing, online penetration across travel services in India is still very low.
Speaker Change: As the business is scaling.
Cash generation continues to be robust during full year or financial year 'twenty four.
Speaker Change: Operating profit was about $134 $2 million and we added net cash of about 101 $21 million.
Speaker Change: It is at year.
Speaker Change: Year end cash position stands at over $600 million.
Speaker Change: Besides maintaining a healthy watches we will continue to leverage the strong cash position to invest in potential organic and inorganic niche growth opportunities as demonstrated in recent past.
Mohit Kabra: As a result, we believe there can be meaningful growth opportunities for us to pursue in the coming years. In view of the improving cash generation in the business, we may also pursue opportunistic share repurchases or buybacks. As reported in the past, we have been and will continue to leverage our employee stock option plans to be an important part of our people strategy. We could start with opportunistic buybacks to mitigate the dilution from our shared risk compensation programs.
Apart from domestic air ticketing online penetration across several services in India is still very low as a result, we believe that can be meaningful growth opportunities for us to pursue in the U S.
Speaker Change: In view of the improving cash ambition in the business.
Speaker Change: Pursue opportunistic share repurchases or buybacks as reported in the past we have been and will continue to leverage our employee stock option plans.
Speaker Change: To be an important part of our people strategy.
Mohit Kabra: Before we get into Q&A, I would like to call out two exceptional items or one-off items impacting the current quarter as well as the full fiscal year being reported. Firstly, in view of the established trend of profitability over the last couple of years, the company has recognized net deferred tax assets to the tune of $126.1 million based on an estimated utilization of carried forward losses and other deductible temporary differences against future taxable income.
Speaker Change: We could start with opportunistic buybacks to mitigate the dilution from Australia risks competition programs.
Speaker Change: Before beginning the Q&A I would like to call out two exceptional items of one off items impacting the current quarter as well as the full fiscal year, we reported.
Speaker Change: Firstly in view of the established trend of profitability over the last couple of years. The company has recognized net deferred tax assets to the tune of alternatives went to $6 $1 million based on an estimated utilization of carried forward losses and as a deductible temporary defenses against future taxable income.
Mohit Kabra: The other one-off game is due to a change in the carrying value of our 2028 Zero Coupon Convertible Notes. We had issued these notes in February 2021 with a life of seven years, and the put options in the note were at the end of year three and year five. Initial accounting treatment at the time of issuance was to true up the potential redemption value by the end of the third year, which was the first put option exercise.
Mohit Kabra: However, none of the notes were put in for redemption during the first put option, which came up on Feb 24, With the next put option being due two years later at the end of year five of the notes, the redemption value on the notes has been discounted to arrive at the current carrying value, resulting in a gain to the tune of about $30.6 million, which will be expensed over the next two years or before the next put date. With that, I'd like to turn the call over to Vipul for Q&A.
Speaker Change: Yeah.
Speaker Change: The other one off gain is due to <unk>, indicating.
Speaker Change: Our 2028 zero coupon convertible notes were issued these notes in February 'twenty, one with a life of seven years and the put options.
Speaker Change: In the note what it end of year, three and year five initial accounting treatment at the time of issuance laws to true up the potential redemption value by the end of the Tokyo, which was the first adoption thing.
Speaker Change: However, none of the north of Poland for redemption during the first production, which came up in February 24, with the next production being due two years later at the end of your five of the notes.
Speaker Change: Amgen value under North has been discounted to whatever the current carrying value.
Speaker Change: Resulting in a game to the tune of about $36 million, which.
Speaker Change: Which will be expensed over the next two years.
Speaker Change: Before the next date with that.
Vipul Garg: Mohit, any participant wishing to ask a question can raise their hand now, and we will take questions one by one. The first question is from the line of Sachin Salgaonkar of Bank of America. Sachin, your line has been unmuted. You may please ask your question.
Speaker Change: Like to turn the call to open for Q&A.
Speaker Change: Thanks Mohit.
Speaker Change: Any participants wishing to ask a question can raise their hand, now and they will take questions one by one.
Sachin Shrikant Salgaonkar: Should we see some impact of that as we go into the summer holidays? That's question number one.
Speaker Change: The first question is from the line of such until Dawn Kurt for Bank of America, such in Europe has been unusually repeat answer to your question though.
Speaker Change: Thanks Betsy.
Speaker Change: Three questions. So first question you don't wanted to understand a bit on domestic gas supply.
Speaker Change: And I just sat here, you're coming back in second half Fisher TNMP will maintain supply.
Speaker Change: But the question now kit is now, adding thereby less hedged to a lofty with startup I'll, let Sarah going on strike and we saw basically the impact of that how bad could we see them back and then the outcome and an extension of that question is should we see some impact of that as we go into the summer holidays.
Vipul Garg: Rajesh, you are on mute. Still on mute.
Speaker Change: That's question number one let me pause here.
Rajesh Magow: Yeah. Sorry. Sorry. Sorry.
Speaker Change: Ron I just shared on mute.
Rajesh Magow: Thanks for the question, Sachin. An observation is right, you know, as we've sort of called it out as well. If you look at the full year data, you know, fiscal year 24 over 23, and you look at the departures data, you would notice that, you know, all things considered, it has still improved 5% year-on-year. So, you know, despite all the issues and the noise that we hear, it has still managed to improve. And, you know, the go-first has been sort of grounded, and there's no sort of hope of that coming back, etc.
Ron: Still on mute, yes, sorry, sorry, sorry.
Speaker Change: Thanks, Thanks for the question Sachin.
Speaker Change: An observation is right.
Speaker Change: You know as.
Speaker Change: As we've sort of called it out as well if you look at like full full year data.
Speaker Change: On fiscal year 'twenty for over 23, and you look at the <unk>.
Speaker Change: The departures leader.
Speaker Change: And use you would notice that.
Speaker Change: All things considered it has still improved 5% year on year. So despite all the issues and the noise that we hear all.
Rajesh Magow: So, it seems like that despite all those issues that we see and hear, both Indigo and Air India, and also SpyJet have been able to sort of also get alternatives in place in terms of just replacing some of the planes where there were engine issues earlier, or, you know, the new planes coming in as part of their expansion plans, etc. So, my view is, obviously, the potential for growth is higher. We all know that, and that's the reason why, from the long-term outlook standpoint, they've placed record orders, etc.
Speaker Change: It is still manage to overall improve and you know and you know that the golf course has been sort of grounded and Theres no ourselves.
Speaker Change: Hope all of that coming back et cetera.
Speaker Change: So it seems like that.
Speaker Change: Despite all those issues that we see in your voting to go on Air India and also spy Jacob been able to sort of also get alternative.
Speaker Change: Alternatives and players in terms of just replacing.
Speaker Change: Some of the some of the planes are engineers showed earlier on.
Speaker Change: You know the new planes coming in as part of their expansion plans et cetera. So.
Rajesh Magow: And therefore, you know, so I'm not necessarily overtly worried about the mid-term to long-term outlook on domestic air supply expansion. I think that will fall in place. This recent issue of strikes, you know, thankfully on Air India Express got controlled very, very quickly. You know, we didn't really see, obviously, there would be an impact on a day or two, but we didn't really see a significant sort of impact beyond the couple of days that we saw.
Speaker Change: So my view is obviously the potential of the growth at Idaho, We all know that and that's the reason why from the long term outlook standpoint, they're placed record orders et cetera.
Speaker Change: And.
Speaker Change: And therefore.
Speaker Change: So I'm not necessarily overtly worried about midterm to long term outlook on on domestic air supply expansion I think that will fall in place. This recent issue of strike. So tactfully on Air India Express got control very very quickly.
Speaker Change: I Didnt, we didnt really see obviously, there will be an impact on day or two.
Rajesh Magow: And the other thing I think in Mohit's script that he was also trying to highlight is that we noticed a very interesting sort of trend as well, that if there is temporary disruption that happens on the air side, we see all the other modes of transport sort of gaining share as well. So, I don't know if you noticed that, you know, we highlighted that bus volumes are growing at about 17% on our platform, rail is growing at about 30%, and intercity cabs are also growing at a very healthy percentage.
Speaker Change: But we didn't really see significant sort of impact beyond a couple of days that we saw.
Speaker Change: And the other thing I think envoys script that he was also trying to high alert, we noticed a very interesting sort of trend.
Speaker Change: There is temporary disruption that the that happened on the air side, we see all the other modes of transport sort of gaining share as well. So I don't know if you noticed that we highlighted that the bus volumes growth at about 17% on our platform really growing at about 30% in intercity cab also grew.
Rajesh Magow: So, my sense is the demand momentum is because there is momentum in demand, and if there is, and the overall experience on the other modes of transport has also improved significantly, and for any reason, whether it is supply disruption or let's say fares going up, because, and the year-on-year fares have been up, if you look at this quarter compared to the last year, same quarter, about 15% to 17%, and then demand moves on So, overall, I would say that there will be a balancing act and should not even have, even from a short-term standpoint, or, you know, sort of big impact on the general demand momentum that is there in the market.
At a very healthy.
Speaker Change: Okay. So so my sense is the demand momentum is because there is there is momentum in demand.
Speaker Change: And if there is and the fact that overall experience on the other modes of transport have also improved significantly.
Speaker Change: And if for any reason or whether it be supply disruption or let's.
Speaker Change: <unk> is going up because and the year on year periods have been up if you look at water this quarter compared to the last year's same quarter about 15% to 17%.
Speaker Change: And then the demand moves onto the other channels and we do have alternatives today. So overall I would say that.
Speaker Change: There will be a bad thing Act.
Speaker Change: And should not have been have you been from a short term standpoint, or you know sort of a big.
Mohit Kabra: Thanks Rajesh, very clear and articulate. Second and third questions are to Mohit. Mohit, just wanted to understand personal expense and ESOPs increase into this quarter. Are there any one-offs or any specific reason which led to that? And third question is, you know, any thoughts on potential share buyback?
Speaker Change: Big impact on the general demand momentum there is there in the market.
Speaker Change: Thanks, Raj is very clear and articulate and second and third questions. Howard Route to Mohit I just wanted to understand a personal expense any swaps increase into this quarter.
Mohit Kabra: When it comes to the share-based compensation programs, like we have been mentioning, our overall full-year number on this count is likely to remain in the same range. So if you look at it over the last three years, this has remained around the range of about 36 to 37 million dollars, and the current year has also come in at about 36.9 million dollars.
Speaker Change: Are there any why not set any specific reason, which led to that and third question is you know any thoughts on a potential share buyback.
Speaker Change: Sure sure. Thanks switching.
Speaker Change: So the share based compensation broken out like we have been mentioning over.
Jim: Full year number on discounters like to remain in the family. So if you look at it over the last three years. This has remained around the range of about 36% to $37 million in the current year has also come in at about $36 9 million Jim.
Mohit Kabra: Generally, what happens is the truing up at the end of the year for a variety of variables such as, you know, attrition rates, etc., leads to a scenario where, historically, we have seen that in the initial three quarters, the charge out is higher, and in the fourth quarter, the charge out tends to be lower. In a manner of sorts, this has been a reversal of trend, whereby because of improving attrition rates and much better retention rates, the actual interest charge out in the fourth quarter has been higher compared to the first three quarters. But if you look at it overall for the full fiscal year, the trend remains intact, and the absolute dollar amounts remain the same.
Jim: Generally what happens is the the the twingo at the end of the year.
Jim: But for a variety of variables such as attrition rates et cetera.
Jim: Leads to a scenario, where historically we have seen that the initial three quarters, that's always a desire and in the fourth quarter advertiser tends to be lower.
Speaker Change: In a matter of ourselves. This is Barry was enough trend whereby because of you know improving at.
Speaker Change: Attrition rates.
Speaker Change: And much better retention rate the activity sales charge RMB, one quarter has been higher compared to the first three quarters, but if you look at it overall for the full fiscal year the trend remains.
Mohit Kabra: So that's on share-based compensation. I presume the same logic for personal expenses, or anything more to look into that?
Speaker Change: In fact in the absolute dollar amounts in the industry.
Mohit Kabra: Not really. Largely in line because, you know, no significant kind of additions on the other personal expenses as well.
Speaker Change: Correct, that's been shared based compensation I presume the same logic for personal expense hurt anything more to protect.
Speaker Change: Largely in line because.
Mohit Kabra: On the buyback side, like I've just called out, we do have good cash surpluses now, and therefore, we would be open to kind of pursuing opportunistic buybacks. And the initial intent is that we do have the share-based compensation plans, the one we just discussed, close to about $36-37 million of the kind of expense that comes in or the issuance that comes in every year. So, if nothing else, we should be able to start with trying to mitigate the dilution coming in from the share-based compensation programs going forward. So that could be the initial start in terms of a foray into share repatriation.
Speaker Change: No no significant ground up you know editions on the on the other personnel expenses as well.
Speaker Change: Correct and thoughts on buyback on the buyback side like Ive just colo.
Speaker Change: No.
Speaker Change: We do have.
Speaker Change: Cash surplus is down and therefore, we'd be open to kind of pursuing opportunistic buyback and the initial intent is that we do have the share based compensation plans you know the one we just discussed close to about 36 $37 billion of kind of expense that comes in at issuance that comes in every year. So.
Speaker Change: If nothing else, we should be able to start with trying to mitigate the dilution coming from this year. This competition programs going forward so that could be the initially start in terms of.
Sachin Shrikant Salgaonkar: Any timeline in mind, next six months or more?
Mohit Kabra: Not really. I mean, we'll keep an open mind. There is no kind of, you know, urgency around it. And therefore, we'll keep an open mind. And, like I said, this will be more opportunistic in nature than some kind of steady state by that program.
Speaker Change: On D C.
Speaker Change: Share repurchase.
Speaker Change: Any timeline in mind next six months or more.
Speaker Change: Not really I mean, we keep an open mind.
Speaker Change: There is no kind of urgency around it.
Sachin Shrikant Salgaonkar: Thank you. I'll return to the queue.
Speaker Change: And therefore, we keep an open mind and like I said this will be more opportunistic in nature, rather than kind of a steady state buyback programs.
Vipul Garg: Thanks, Sachin. The next question is from the line of Manish Adukia of Goldman Sachs. Manish, you may please ask your question now.
Speaker Change: Got it thank you I'll return back to the queue.
Speaker Change: Thanks <unk> next question is from the line of you shouldn't kill for Goldman Sachs Manish <unk> ask you a question.
Manish Adukia: It's been quite strong in this quarter, like you called out, Rajesh, despite it being a seasonally weak quarter. And like you said, maybe the second half of this year, the supply situation should further improve. Internationals are quite strong, and hotels' momentum has been great.
Paul: Thanks to Paul Hi, good afternoon team and with the capital.
Manish Adukia: So first question on the mine now it's been.
Speaker Change: Quite strong in this quarter like you called out a tragic despite it being a seasonally weak quarter and like I said, maybe second half of the theater.
Manish Adukia: So, I mean, trying to understand what kind of, let's say, visibility do you have on the medium-term demand outlook for MakeMyTrip? I mean, in the past, you've said you can grow at 1.5 to 2x of the underlying market, given online penetration is low. But I'm just trying to understand, can this 25% kind of growth sustain for the next two, three years? What are the possible upside or downside risks? Just maybe your thoughts on that. That's my first question.
Speaker Change: Fly ash situation should further improve international.
Speaker Change: Strong hotel.
Vipul Garg: Yeah. Thanks.
Speaker Change: So I mean, what I'm trying to understand what kind of let's say visibility do you have.
Mike: On medium term demand outlook for me, Mike I mean, the parts. You said you can grow like you know what in the house two weeks of the underlying market given online penetration is low but I'm trying to understand can this 95% kind of a growth sustain for the next two to three years, what maybe the upside or downside risks, yes, maybe I'll touch on that that's my first question.
Rajesh Magow: Thanks for asking this question, Manisha. You know, our thoughts actually haven't really changed from what we had shared earlier, and you pointed that out as well. We do believe that if the market is able to hold on to the projected numbers of double digit growth overall, this I'm talking about the travel and tourism market, and some of the reports have spoken about anywhere between 10% to 13% growth. And we, like in the past, should be able to grow higher than the overall travel and tourism market growth rate, you know, by 1.5x or thereabouts.
Mike: Yeah.
Speaker Change: Thanks, Thanks, a lot asking this question many shops.
Speaker Change: At heart actually haven't really changed from what we had shared with you and you called it out as well.
Speaker Change: We do believe that if the if the market is able to hold on to the.
Speaker Change: Our projected numbers of double digit growth overall, this I'm talking about travel and tourism market and some of the reports I've spoken about anywhere between 10% to 13% growth.
Speaker Change: And we.
Speaker Change: Like in the past, we should be able to grow all higher than the overall travel and tourism market growth rate.
Rajesh Magow: So, I don't think there is, at this point in time, anything pointing towards changing the view on that from a midterm standpoint. Because like I was just saying earlier also, even in this quarter, it's supposed to be a low season leisure quarter, you know, and that we were able to, if you look at the overall adjusted margin in absolute terms, very close to the seasonal quarter absolute number.
Speaker Change: By 1.5, XR or thereabouts. So I don't think there is at this point in time, there is anything pointing towards of changing the view on that from a midterm standpoint.
Speaker Change: Because like I was just saying it earlier also even in this quarter.
Speaker Change: It's a little it's supposed to be a lower season leisure koto.
Rajesh Magow: So, and that's partly also because, you know, our investments into various other segments have also sort of yielding results. But it also points to the fact that there is momentum in travel in every particular use case. Now, whether it is, you know, VFR, or leisure, or, you know, business travel, or spiritual travel, and so on. So, at this point in time, I would say, Manish, our view remains the same. And there's nothing that I can see, at least at this point in time, that points towards just, you know, forming a different point of view.
Again, I'm glad we were able to if you look at the overall adjusted margin on an absolute downs.
Speaker Change: <unk> are very close to the season quarter absolute number so and that's partly also because that we have been at a nice wins into various other segments have also sort of yielding results.
Speaker Change: But it also points to the fact that there is momentum.
Speaker Change: In travel in every particular use case now whether it is you know VFR or leisure or.
Speaker Change: Business travel law spiritual travel and so on so at this point in time I would say when you ship Egan our view remains the same.
Manish Adukia: Thank you Rajesh. That's very helpful. Maybe a follow-up on that?
Speaker Change: And there's nothing that I can see it at least at this point in time that points towards.
Manish Adukia: Your marketing and promotion spend obviously has remained below 5% for some time, because the competitive environment seems really good. So that 1.5 to 2x, which is the growth of the underlying market, is great from the shift to online. But do you think there is opportunity over the next 2, 3, 4 years to actually grow even faster because you may win more market share given how benign competition is? Do you think the market share has stabilised, or do you think there is more room for it to move higher?
Speaker Change: Just forming a different point of view thank.
Speaker Change: Thank God I, just that's a handful maybe a follow up on that.
Speaker Change: Marketing and promotional spend obviously you have some mean below 5% for some time competitive and alignment seems.
Really good so that's one point I have to ask I guess the growth of the underlying market is great from the shift to online, but do you think there is opportunity over the next 234 years to actually grow even faster because you win more.
Speaker Change: More market share given how benign company and if so do you think youre gaining market share is steady state or stable market change don't foresee and I'm talking about specifically the online cohort within the online do you think your market share now have stabilized or do you think there's more room for that to animals.
Rajesh Magow: You know, I would, I would, Manish, put it slightly differently. I mean, rather than just going with any kind of a preconceived thing or notions, I would say, and this is how we operate, by the way, or have been operating in the past as well, that we would not necessarily miss any opportunity that wherever in whichever segment we see an opportunity and we are not holding on on our investments and you know and the overall brands have become more and more reliable and popular and our repeat rates have been very very robust but wherever we see and you know you've seen some of the recent investments where we have been powering different different platforms to be able to get to the uh you know expand our reach for the new user acquisition etc uh so i i don't think we are uh we are saying that we will hold on to any potential investment that will be required obviously trying you know need to do that intelligently need to do that uh you know data data bagged and and more sort of uh uh looking at uh you know what kind of return on investment that you could potentially get etc so doing it more intelligently but we're definitely not uh going to leave any opportunity that might be out there staring on our face and saying you know in this particular segment that we could grow more for example like international segments you've seen there is more headroom and we are growing at a faster rate you know our homestead segment has been growing at a faster growth rate um uh potentially we've called out that there is a potential unlock that we can do for the intercity cab as well now all of these areas are where there is more headroom more potential and we will continue to keep investing uh behind those
Speaker Change: No I would I would manage put at this slightly differently I mean, rather than just.
Okay.
Speaker Change: Going with any kind of a brief.
You can see obtained on oceans.
Speaker Change: Hey.
Speaker Change: I would say and this is how we operated by the way would have been operating in the past as well that we would not necessarily miss any opportunity that we see.
Speaker Change: Wherever in whichever segment, we see an opportunity.
Speaker Change: And we are not holding on on our investments and the overall brands have become more and more reliable and popular and our repeat rates have been very very robust, but where would we see and you've seen some of the recent investments where we have been powering the fingerprint like <unk> to get to the.
Speaker Change: Expand our reach for the new user acquisition et cetera.
Speaker Change: So I don't think we have.
Speaker Change: We are saying that we will hold on to any potential investment there to be required. Obviously trying you now need to do that intelligently need to do that.
Speaker Change: No data data back then and more sort of.
Speaker Change: Looking at you know.
Speaker Change: What kind of return on investment that you could potentially get et cetera, so doing it more intelligently, but we're definitely not.
Speaker Change: I'm going to leave any opportunity that might be out there standing on a pace and saying you know.
Speaker Change: In this particular segment that we could grow more for example, like international segments. You've seen there is more headroom and we're growing up a parcel rate you know our homestay segment has been growing at a faster growth rate.
Speaker Change: Potentially we have called out that there is a potential analog but we can do for the intercity cab as well now all of these areas, where there is more headroom all potential and we will continue to keep investing.
Mohit Kabra: So Mohit, on the cash addition, maybe a follow-up to the question Sachin asked earlier, when you think about, you've called out some of the numbers that, okay, a maximum buyback of, let's say, $60 million, but you also talked about in your opening remarks that you would also look at organic and inorganic opportunities. So specifically on the inorganic opportunity, is there like a threshold cap number that you have in mind that you will not, let's say, buy assets that are larger than a certain number, given, of course, the cash balance is really large, and you could potentially invest a lot?
Speaker Change: Behind doors.
Speaker Change: Thank God, Yeah that makes sense my last question, maybe a little more head.
Mohit Kabra: So just trying to get some sense as to whether inorganic could be like a large investment area, or would it not? And maybe another follow-up was on ESOP also. So just to clarify, this $35-40 million will also be the run rate for the next year, or is the $13 million for the quarter annualized the new run rate for ESOP?
Speaker Change: So Mike on the cash.
Speaker Change: Cash and just maybe a follow up to the question is if I can ask them.
Mac: When you think about you've called out some of the numbers, okay, Mac, some buyback of like $60 million.
Speaker Change: Like do you also talked about in your opening remarks that you would also if you could look at organic and inorganic opportunities specifically on the inorganic opportunity.
Speaker Change: Is there like a GAAP.
Speaker Change: GAAP number that you have in mind that you will not let's say biotechs that are larger than a certain number given of course. The calculus is really ligand, but you know potentially large so just trying to get some sense as to in organic be like a large investment ADR would it not and maybe another follow up was on Aesop also so just to clarify this 35 to 40 million.
Mohit Kabra: Sure, maybe I'll take the second part. So, it is between $35 and $40 million. The full year number is the run rate that I was talking about. So, it's best to look at it in the full year terms and not really by the quarter because you could have, you know, slight variations across quarters based on, you know, vesting schedules, etc. So, it's more the full-year run rate. And, you know, coming to the inorganic growth opportunities, fortunately, I don't think there's any cap in mind.
Speaker Change: <unk> will also be the run rate for the next year or if the 13 million for the quarter annualize the new run rate for you somebody was asking about that.
Speaker Change: Sure maybe I'll take the second one first so introductory $30 million to $40 million.
Speaker Change: Number is the run rate that I was talking vessel, it's best to look at it in the full year terms and not really by the quarter because you could have.
Slight variations across quarters based on you know lifting schedules et cetera. So it's more of a full year run rate and then coming to the.
Mohit Kabra: And we don't necessarily need to put in a cap in mind right now, with the kind of, you know, the platforms and coming into the group and therefore going forward the inorganic investments are likely to be more in niche spaces which can help us you know drive faster growth or kind of you know accelerate our plans in some of these segments now whether it could be you know like say for instance the last few examples have been in the intercity cab market or say for instance in the corporate you know kind of you know demand segment or say for instance on the hotel side or on the forex side so we would be open to kind of looking at investment opportunities pretty much across the board except for the fact that we have historically never you know made any inorganic investments on the ticketing side or on the a ticketing side so most of the other segments is where we kind of you know keep looking for opportunities to augment our growth or accelerate our plan so that is where I would leave it. Thank you.
Speaker Change: Inorganic growth opportunities and unfortunately, I don't think there's any gap in mind.
Speaker Change: And we don't necessarily need to end up within our cap in mind right now with the kind of Oh.
Speaker Change: Yeah. She lives that we have on the balance sheet didn't even otherwise the everyday to be able to reach.
Speaker Change: Cash if need be for any inorganic growth I think the.
Speaker Change: The the realistic toward over the areas that we don't necessarily see any large consolidation opportunities per se and like we've been saying the large consolidation opportunity has already played out in that case, we're in we have kind of already.
Speaker Change: Brands like I do blended was coming into the platform. So called minions group and therefore going forward. The inorganic investments are likely to be more in niche spaces, which can help us.
Speaker Change: Very faster growth or kind of inaction laid our plans in some of these segments and whether it would be like say for instance, the last few examples have been in the intercity cab market. Okay for instance in the culprit.
Speaker Change: Kind of inner demand segment Asta funding stands on the hotel side.
Speaker Change: Or on the Forex side, so we would be open to kind of looking at investment opportunities pretty much across the board.
Speaker Change: Except for the fact that we have historically never.
Speaker Change: Made any inorganic investments on the on the ticketing side or on the air ticketing side of most of the other segments is where we can let me know keep looking for opportunities to argument our growth or accelerate our plans. So.
Vipul Garg: Thank you. Thanks, Mohit and Rajesh. Thanks for taking my questions.
Aditya Suresh: Thank you, Manish. The next question is from the line of Aditya Suresh of Macquarie. Aditya, you may please ask your question now. Thanks, Vipul, and good afternoon, Mohit and Rajesh. Rajesh, for you, in terms of your
Speaker Change: That is that I would do it.
Speaker Change: Thank you. Thanks Mitra, Thanks for taking my questions. Thank you.
Speaker Change: <unk>. The next question is from the line of deterioration from Macquarie.
Speaker Change: Sure.
Speaker Change: Thanks for calling in.
Speaker Change: Good afternoon.
Speaker Change: Or is it for you in terms of your cash position and be in best ambitions, maybe you could just clarify one.
Vipul Garg: Yeah, no, of course. I was just trying to, I think the audio was not that clear.
Speaker Change: <unk> ambition is off from Macquarie. Please.
Speaker Change: What's the ambition on sorry.
Rajesh Magow: See, international, Aditya, what I was trying to highlight was there are two types of international use cases here in our business, right? So one is outbound travel. And the one that you see the numbers that, you know, we particularly highlighted, actually both for flights and hotels, it's the international outbound travel for our flights and hotels and even the packages, which is part of the hotel and packages reporting segment. There we see a lot of headroom, both from an online penetration standpoint, but also, you know, rising income, and people are looking to sort of get back to their foreign travel as well, as the supply situation improve And again, that has been significantly improving, you know, over the last year.
Speaker Change: International side, there was some news flow in the quarter.
Yes.
Speaker Change: Excellent aspiration.
Speaker Change: Yeah, No of course not.
Speaker Change: I was just trying to I think the audio was not that clear he international at the table. There was trying to do highlight whether there are two types of international use cases, you're in a business where tier one is outbound travel.
Speaker Change: And the one that you see the numbers that we.
Particularly highlighted actually good for flights and hotels, it's the international outbound travel for all flights and hotels and even their packages, which is part of the hotel and packages reporting segment.
Speaker Change: Segment.
Speaker Change: We did we see a lot of headroom both from an online penetration standpoint, but also.
Speaker Change: You know rising can come and go and people are looking to to sort of get back to their foreign travelers as well.
Rajesh Magow: Also, the fact that visa operations, you know, for many, many countries, and they're trying to fly within five or six hours of flying distance, Southeast Asia, the Middle East, many countries, new countries, even some parts of Europe, they have opened up the visa operation, trying to sort of move Indian tourists and travelers into their countries. And we've seen a tremendous amount of inbound interest coming in from all the tourism ministries of various countries as well.
Speaker Change: As the supply situation improves and again that has been improving.
Speaker Change: Over the last year significantly.
Speaker Change: So the fact that the resort operations.
Speaker Change: For many many countries and they're trying to probably about a six hour flying distance Southeast Asia Middle East and many countries new countries, even some parts of Europe, but they have opened up the resolve and trying to sort of Oh Indian tourists and travelers into into their countries and we've seen tremendous amount of inbound inbound sort of interest coming in.
Rajesh Magow: So that is something that we were trying to say that, you know, there is a good potential opportunity for growth there. And, you know, our ambition there is clearly, see our overall vision is for the Indian travelers, whether traveling within India or traveling outside of India, we would like to provide all kinds of travel services and travel-related services. And that's really, you know, our focus has been, and we continue to sort of keep driving that.
Speaker Change: From all the <unk>.
Speaker Change: Tourism in history go various countries as well so that is something that we were trying to on to say that there.
Speaker Change: So there is good potential opportunity of growth there.
Speaker Change: And you know our ambition there is its clearly see our overall vision is for.
Speaker Change: For the Indian travelers.
Rajesh Magow: And then the other part of the international business that we have is for different markets. So the GCC launch, for example, for McMutter's brand, starting with the UAE market, is for that source market. Now that has been steadily growing as well, starting with there, and then, you know, we want to also grow the hotel business, sort of organically growing that as well. Now that travel might be, you know, coming to India and back and forth between India from that region, but that travel could also be expats from that market going to various, you know, sort of other leisure destinations for their break or for their holidays.
Speaker Change: Within India are traveling outside of India.
Speaker Change: We would like to provide all kinds of problems services and the travel related services and that's really our focus has been and will continue to sort of keep driving that.
Speaker Change: And then the other part of international business that we have is for the different market. So.
Speaker Change: The GCC launched for example for me quite a blind.
Speaker Change: Starting with the UAE market is is for that source market now that has been steadily growing as well starting with that and then you point towards so good ol business sort of organically growing.
Speaker Change: That as well now that travel might be coming to India and back and forth between India from that region, but that Travelport also be there.
Rajesh Magow: So that is the other sort of aspect of our international business growth, if you will. And last but not least, I would also mention that I think it's there in the script, which we called out as well.
Speaker Change: Expect so from dark market going to various.
Speaker Change: Sort of other leisure destinations for their break for the holidays. So that is the other.
Speaker Change: Sort of aspect of our international business.
Speaker Change: And this growth if you will and last but not the least I would also mention I think it's there in the script.
Speaker Change: We called it out as well as our Red bus trying to go to all various international destinations.
Speaker Change: No.
In this quarter, we launched a.
Speaker Change: In Vietnam, and Cambodia, as well so variable.
Speaker Change: And do you see there is large bus market. When you already have a playbook that has worked very well in India. We are taking it to those markets as well, which is again a midterm to long term play.
Mohit Kabra: Thanks, Rajesh. And the second piece was on margins, right, or commissions in the air business, which have steadily improved and have remained healthy. So any trends for us to think about in terms of how commission rates in the air business could kind of shake up this year?
Speaker Change: It is another job sort of aspect of our international business growth if you will.
Speaker Change: Yeah.
Speaker Change: Thanks, Mike and.
Speaker Change: And the second thing was on margins right or commissions and the emphasis which is steadily improving.
Speaker Change: So it remains healthy so any trends there for us to think about in terms of how commission rates and in the air business could kind of shake out for this year.
Speaker Change:
Speaker Change:
Speaker Change: Medium term kind of estimate as you know this will kind of sleep and the orderly ticketing base will go.
Speaker Change: Salt worse, but not in a very large manner. So they should largely remain their own b and.
Mohit Kabra: Whether it is hotels and packages around the 16-17% levels, or whether it is bus ticketing around the 9.5-10% levels, we do believe that margins should largely remain stable in the coming years.
Speaker Change: And then the 6% market would be small plus or minus over that number but we do believe that most of the margins you know across segments are likely to remain stable or whether it is a beginning in around the 6% level, whether it is hotels and packages around the.
Speaker Change: 16, 17% levels or whether it is bus ticketing around Atlanta to half to kind of 10% levels. We do believe that Marty mentioned.
Aditya Suresh: Thanks so much. And the final piece was on other expenses, right? Obviously, that's increased strongly, and there's been a reclassification of your distribution costs and other expenses. There's been ongoing team work, but if you shed more light on this, should we expect, for example, the sales market to remain within that 5%, but perhaps other expenses are going to grow stronger? Any thoughts on this?
Speaker Change: Largely remained stable in the in the coming years.
Speaker Change: Thanks, a lot.
Speaker Change: I think you said it was on other expenses rate, obviously, that's increased strongly and is it a reclassification of.
Speaker Change: Of your distribution costs and other expenses there has been an ongoing employed but if you let's shed more color yet on this thing.
Speaker Change: Should we expect for example sales market has been in.
Speaker Change: But in that 5%, but.
Speaker Change: Other expenses grew stronger eight any thoughts please.
Speaker Change: Yeah I think this is a.
Speaker Change: Better view better presentation, which has kind of been starting from this year onwards, and therefore, we've started calling it out from the from the last few quarters and this is a continuation so no no real change of what Edwards is more than appropriate representation and does.
Mohit Kabra: have a very good comparable this year compared to the previous year. But going forward, we'll have a clear-cut comparable because already the first full year of this kind of antifree classification has gone through. So I think we'll have good comparables over there. I think we'll continue to keep looking at these expenses very differently because they're kind of not necessarily interchangeable per se.
Speaker Change: These aren't really kind of ethanol marketing or promotional expenses is that excluding the nature of the supergene costs and therefore being turned up you know reported accordingly human artery.
Speaker Change: You know a good comparable in this year compared to the previous global one probably will have a.
Speaker Change: <unk> comparable.
Speaker Change: Already the first full year of kind of you know that this reclassification is has gone through so I think you'll have good comparables over that I think will cause you to keep looking at these expenses.
Aditya Suresh: Thanks a lot. If I can, may I ask you one more question? Sure. Thinking about the operating leverage of the platform and thinking about staff expenses, should our expectation be that the staff expenses, employee expenses, that line grows in tandem with revenue? Or do you see that as a potential area for operating leverage as you cross the Kingsgrove?
Speaker Change: Currently.
Speaker Change: Because they are kind of not necessarily.
Speaker Change: Tangible per se.
Speaker Change: Yeah.
Speaker Change: Thanks, Luke if I can maybe ask one more question sure.
Speaker Change: Alright.
Speaker Change: Thinking about the operating leverage the platform.
Speaker Change: And thinking about it but the H J.
Speaker Change: <unk> expenses.
Speaker Change: Should our expectation be that the staff expenses employee expenses that line grows in tandem with revenue or.
Mohit Kabra: Some small amount of operating leverage should keep coming in, you know, on the personal cost side because, you know, we do not really kind of expect to add any significant number of headcount. So, it will predominantly be more inflationary increases which will come through on an ongoing basis in the next few years. And hopefully, the growth kind of, you know, in the business should be, you know, should be higher than that.
Speaker Change: Do you see that as of today.
Speaker Change: Okay.
Speaker Change: Area for operating leverage as the as the magical speaking.
Speaker Change: Some small amount of operating leverage should keep coming in you know in the personnel cost side.
Speaker Change #100: As you know, we don't really kind of expect to add any significant number of head count. So it will predominantly be more infill.
Aditya Suresh: Thanks very much. All the best. Thank you.
Speaker Change #101: Hey, Sterling. This is this will come through.
Speaker Change #101: On a on a ongoing basis in the next few years.
Vijit Jain: Thanks, Aditya. The next question is from the line of Vijit Jain of Citi. Vijit, you may please ask your question now.
Speaker Change #101: Hopefully the growth kind of in the business would be.
It should be higher than that.
Speaker Change #102: Thanks, Mike all the best.
Sterling: Thank you.
Speaker Change #104: Thanks. The next question is from the line of Richard Chin City digit tiered. Please ask your question.
Vijit Jain: My first question is, you know, just looking at the other component, right now this quarter, if I look at just comparing it with the last quarter, generally, this is a seasonally weaker quarter, so all GVVs are lower versus last quarter, but there's a pretty decent jump here and it's been a story for a while. So just trying to understand what is the most sensitive. [inaudible]
Speaker Change #105: Thank you.
Speaker Change #105: Hi.
Speaker Change #105: Congratulations.
Speaker Change #106: Pay telecom again.
Speaker Change #107: My first question is.
Speaker Change #107: Just looking at the other component right.
Speaker Change #108: No this quarter, if I look at just comparing it with the last quarter.
Speaker Change #109: Generally this is seasonally weaker quarters, so on GBP, either lower versus last quarter, but there's a pretty decent jump here and it's been a story for a while so I'm just trying to understand what is the most sensitive.
Speaker Change #109: Travel segment, which seem to affect the other businesses.
Speaker Change #110: Is that effect related to the S aid, where the pricing has been slightly higher so some of the products you have like locking etcetera is doing very well just trying to get a sense of what the key drivers for that thesis.
Speaker Change #111: The address.
Speaker Change #111: Has been increasing in terms of the number of offerings that we can end up reporting.
And historically, if you would recollect it used to be predominantly.
Speaker Change #111: The insurance related income, which used to be kind of coming in over there right.
Mohit Kabra: improving very meaningfully, you know, through the years. So, things like income from rail ticketing, income from intercity cabs, et cetera, right now are all kind of reported in the other segment. You may recall we launched a full TripMoney platform, which is more of a FinTech platform, wherein we have also kind of, you know, built in a variety of options for offering various other ancillary services, such as Forex, et cetera.
Speaker Change #111: Great.
Speaker Change #111: Travel related services, including some travel services for instance.
Speaker Change #111: Talking about.
Speaker Change #111: No.
Speaker Change #111: Other ground transport kind of you know.
Speaker Change #111: Moving very meaningfully even through the sort of things like.
Speaker Change #111: Income from rail ticketing income from Intercity cats exercise right now, resulting in a reported indeed in the other segment.
Speaker Change #111: You would recollect, we had launched a phone.
Mohit Kabra: All of that is also kind of, you know, part of the other services. I think one reason is that there is kind of, you know, natural growth coming in, in the existing kind of, you know, offerings in that particular segment and also, you know, an increase in the breadth of services that are now being kind of, you know, captured under that segment. So, that's what is driving it.
Speaker Change #111: Plenty of platform, which is more of a fintech platform that India also kind of built in a.
Speaker Change #111: A variety of.
Options for offering.
Speaker Change #111: Are there ancillary services, such as Forex et cetera. All of that is also kind of in a part of the other services.
Speaker Change #111: Services I think.
Speaker Change #111: One it is kind of international growth coming in in the existing tender.
Vijit Jain: My second question is just sticking to the air side of the business and the international outbound part, did that do much better this quarter versus last quarter, and how much of the air business that you see this quarter is advanced booking for the upcoming holiday season? If you can relate it to that, just share what your market share in domestic aviation is now.
Speaker Change #111: Offerings in that particular segment and also the.
Speaker Change #111: The increase in the in the past of services that are now being turned up and now captured under that segment, but that's more deserving it.
Speaker Change #112: Alright, Thanks, and my second question is just sticking to the U S side of the business are a and b.
Speaker Change #113: The international outbound back.
Speaker Change #114: Okay Tag do much better this quarter.
Speaker Change #115: We assess our you know last quarter and how much of a.
Mohit Kabra: Sure. I think the market share in domestic divisions like Rajesh Kaldor continues to be around the 30% level. And, you know, if I talk about the mix of international versus domestic, I think the much faster growth in international has been the kind of, you know, the highlight that I had called out, not only for this quarter but across the year. So, for the full year as well.
Speaker Change #116: The air business I can see this quarter is Eric lunch booking for the upcoming holiday season.
Speaker Change #117: If you can relate it to that gets shared working our market share in the domestic aviation is.
Sure.
Speaker Change #117: Market hearings only supervision Legalizes color continues to be around the 30% level and you know if I talk about the mix of international versus domestic.
Vijit Jain: And, you know, just to give you some color, our mix coming in on the adjusted margin side, in the aid of getting business from international used to be hovering around, you know, about 24-25%. It's already kind of gone up to about 33% plus. So, it's seen a significant, you know, improvement through the fiscal year. And therefore, you know, that's been a story for the year across quarters, not just for Q4. And secondly, it is also coming from the fact, like Rajesh had called out, that the growth in the domestic division, you know, the industry has been muted.
Speaker Change #117: The much faster growth in international has been the <unk>.
Speaker Change #117: Has been the kind of another highlight that I had called out not only for this quarter, but across the year. So for the full year as well and just to be doing.
Speaker Change #117: Some color are.
Speaker Change #117: Mix coming in on the on the adjusted margin side in the air ticketing business in Australia to be operating at all.
Speaker Change #117: About 25% metrology kind of gone up to about 33% plus so we've seen a significant.
Speaker Change #117: We went through the through the fiscal year and therefore.
Speaker Change #117: That's been our install report for the year across quarters, not just for Q4.
Vijit Jain: In view of a variety of kinds of, you know, one of the industries facing, and as a result of that also, you know, the mix has been moving more in favor of international aid ticketing. So, those are the two large reasons.
Speaker Change #118: It is also to some extent coming in from the fact legalizes it called out that the growth in the domestic ambition.
Speaker Change #118: The industry has been muted.
Speaker Change #118: Last year in Europe for a variety of kind of you know about half the industry is facing and as a result of that it also makes.
Mohit Kabra: On the bus side, I heard when you mentioned the launches in Cambodia and Vietnam.
Speaker Change #118: Mix is moving more in favor of internationally hitting so those are the two to two large items.
Speaker Change #119: Good morning, Thanks, guys and the last question on the bus side.
Speaker Change #120: I I heard when you mentioned the launches in Cambodia, and Vietnam engender.
Speaker Change #120: In general overall for the bus business.
Speaker Change #121: Specifically, what would be the share of international versus domestic right now.
Speaker Change #121: But each one is growing better.
Speaker Change #122: Have you just ballpark of about 10%.
Speaker Change #123: The expansion are kind of going up to four into Cambodia, and Vietnam is pretty much in line with our overall strategy, where we've been calling out that we do see an opportunity.
Vijit Jain: more countries to it, launched it in Indonesia, and now we are kind of launching it in Vietnam and Cambodia. So, we do believe overall Southeast Asia offers a good opportunity for expanding the rate of the stock. And I guess, sorry Vijit, I was just going to add one.
Speaker Change #123: Of getting into multiple markets in southeast Asia on the bus ticketing is back then you were to collect yet started with Singapore, Malaysia.
Speaker Change #123: And if you kind of you know added more context, we launched it in Indonesia, and now we're kind of launching it in Vietnam and Cambodia. So we do believe overall Swankiest Michelle.
Speaker Change #123: It was a good opportunity for expanding the business.
Vijit Jain: Just a last question from my side. In the budget hotel segment, any change, any new momentum that you see there? I know you've said before that the super budget segment continues to suffer, but the cheaper part of the market has done relatively better.
Speaker Change #124: Thank you thank you for that.
Speaker Change #123: Yeah.
Speaker Change #125: Going to add one additional comment on that.
Speaker Change #126: I sort of in this two to double their contribution from 10% to 20% in the midterm as well.
Got it.
Speaker Change #127: Just the last question then from nice say the.
Speaker Change #127: In the chemicals.
Speaker Change #128: The budget hotel segment right.
Speaker Change #129: Any any change any new momentum that you see there.
Speaker Change #130: And I know you've said before that the so called budget continues to <unk>, but the <unk>.
Speaker Change #130: But the cheapest part of the market has.
Speaker Change #130: Done relatively better and I'm just wondering with all these price increases are in the premium category have you seen.
Speaker Change #131: Any change in activity in any place to your point to spend all the hotel chain do you think that is going to happen eventually or do you think that is going to gain a little bit lackadaisical.
Speaker Change #132: You know what was it what has happened is and as we realize over the quarters.
Speaker Change #132: Analyzing the data very very deeply.
Speaker Change #132: Any any.
Speaker Change #132: It's a better price point of around 1000 or beyond.
Speaker Change #132: There is no problem. It does come back the growth has come back.
Speaker Change #132: And that segment is also growing and you see the growth in line with let's say the other segments as well maybe premium is growing relatively higher than maybe my segment in and budget.
Speaker Change #132: Just just about.
Now onto the small gap relatively but all of the all of the segments are growing now.
Speaker Change #132: If the deep and the trend that we had seen it in the past on the ultra budget, which we have been speaking about.
Speaker Change #133: <unk> thousand was unfortunately artificially live in houses.
Speaker Change #133: They were they were they were operating where they were getting sold some 400 500 rupees 600 rupees.
Vijit Jain: And those investments have stopped, and those price points for those hotels have also come back. So, you know, so if you really see effectively the same set of hotels which were just artificially being sold at a ridiculously low price, and now that correction on the price has already taken place, which means that they are getting or inching towards or moving beyond thousands
Speaker Change #133: Arthur Ridiculously low levels was only.
Speaker Change #133: Because of the investments being made in the marketplace in that segment.
Speaker Change #133: And in those in the stock.
Speaker Change #133: And those price points for those are terrible to come back so.
Speaker Change #133: You really see effectively the same set of hotels, which was just artificially being sold at a ridiculously low price are now or that correction on the prices already taken place, which means that they are getting are inching towards or moving beyond <unk> thousand repute, our night as well.
Speaker Change #133: And out of that segment is definitely growing.
Speaker Change #133: Like I mentioned in line with all the other segments as well. So I don't think I think that is a thing of the past.
Speaker Change #133: Maybe there was a little bit of a fraud because of just a very very aggressive.
Speaker Change #133: You know sort of where our price points in the market.
Vijit Jain: All right, my last question, if I can squeeze that in. On international outbound travel from India, apart from maybe you adding supply on the hotel side across new cities and new geographies, is there anything else that is kind of missing from your product bouquet that you think that you need to still invest in to kind of accelerate the share shift to online or to kind of support your international outbound business? Just trying to think of whether there are any major investment areas that you still have to look into.
Speaker Change #133: And that is now behind us and that is that part.
Speaker Change #134: Richard artificially came in has gone away, but otherwise all of those segments are now smart.
Speaker Change #135: My last question, if I can squeeze it in on.
Speaker Change #135: On the international outbound travel from a net eight.
Speaker Change #136: Apart from you know maybe you are getting a supply in New York and say Ada across new cities and new geographies is there anything else.
Speaker Change #137: That is kind of missing from your product, okay, you're saying that you need to sell investing to kind of accelerate.
Speaker Change #138: Sure sure.
Speaker Change #138: Nine or to kind of.
Speaker Change #138: Supported International Congress. This I'm just trying to think of whether there are any major investment areas I guess, you'll have to look into.
Speaker Change #138: You know the online price product and we see that continuous improvement and we will continue to keep doing that we obviously will will you use.
Rajesh Magow: We actually have a partner channel that is sort of helping with the B2C growth, especially for outbound international segments as well, both for flights and hotels. Because of the ticket price, there is that market that is sort of offline sitting out there, and we've been able to sort of reach out to that market as well.
Speaker Change #138: The latest technologies to enhance the front end experience and that's an ongoing innovation that will continue to happen.
Speaker Change #138: I wouldn't say I would actually say on the platform side, we are ready.
On the channel side also we already we actually have my partner our.
Speaker Change #138: Channel that is sort of helping getting there'll be two we can see growth, especially for outbound international segments as well both for flights and hotels.
Rajesh Magow: I think the area of investment for future sort of fueling the international growth both for flights and hotels is going to continuously be on the supply side. Like we called out in some of the international markets and hotels, we are adding new destinations where Indians are going to do the direct contracting more and more. Like every quarter, we will add a couple of destinations and so on. And similarly, on the flight side, we continue to keep working with sort of different or multiple sources of supply and then see what kind of sort of permutations and combinations, including virtual interlining, for example, that we can offer to our customers, which will help them sort of get value for the money, if you will.
Speaker Change #138: Because of the ticket price there is that market there is sort of offline.
Speaker Change #138: Sitting out there and we've been able to sort of reach out to that market as well.
I think the area of a nice win from a.
Speaker Change #138: For a future sort of fueling the international growth both for flight centre brands is going to be.
Speaker Change #138: Continuously going to be on the supply side.
Speaker Change #138: We called out in some of the international markets on hotels, we are.
Adding new destinations where trends are going.
Speaker Change #138: To do the direct contracting.
Speaker Change #138: More and more like every quarter, we will either.
Speaker Change #138: A couple of destinations and so on and similarly on flight side, we continue to keep working with the sort.
Speaker Change #138: Sort of a different or multiple sources of supply and then C.
Speaker Change #139: What are the kind of sort.
Rajesh Magow: So those are the kinds of areas, but the large area of investment there is going to be more on the supply side. On the product side, the continuous innovation will continue, but on the channel side, I think overall we are in good shape there.
Speaker Change #139: Sort of permutations and combinations, including virtual Interlining for example that we can offer to our customers.
Speaker Change #139: We'll help them sort of.
Speaker Change #139: Get value for their money if you will.
Speaker Change #139: So those are the kind of areas, but the larger reorganize went dead is going to be more on the supply side on product side.
Vijit Jain: All right, great. Thanks, Rajiv. Those were my questions. Thank you. Thank you, Vijit.
Vipul Garg: Thank you, Vijit. We're almost out of time. We'll take the last question from Dennis O'Kane of GGHC. Dennis, you may ask your question now. Dinesh, you'll have to unmute yourself.
Speaker Change #139: The continuous innovation will continue.
Speaker Change #139: On channel traded I think overall.
Speaker Change #139: We are in good shape there.
Speaker Change #140: Alright, great. Thanks Ali It also.
Speaker Change #139: Okay.
Speaker Change #139: Thank you Richard we're almost out of time, we'll take the last question from Dennis O'kane of Dfc Danish.
Speaker Change #141: You May ask your question.
Speaker Change #139: Okay.
Dennis O'Kane: I am not sure; the NSS is still on.
Speaker Change #142: Dennis you'll have to mute yourself.
Vipul Garg: In that case, we'll end the call now. There are a few questions in the queue, but we can take them separately offline and turn Rajesh over to you for your closing remarks.
Speaker Change #143: Not sure Dennis is still on.
Rajesh Magow: Thank you Vipul and thank you everyone for your time, and thank you so much for your patience as well.
Speaker Change #144: In that case, a real bill will end the call now.
Speaker Change #145: There are few questions in the queue, we can take them separately offline and would like to share with you to for your closing remarks.
Speaker Change #145: Thank you Paul and thank you everyone for your time.
Speaker Change #146: And thank you so much for your patience is what.
Speaker Change #146: Thanks, everyone. Thank you everyone.