Q1 2025 MakeMyTrip Ltd Earnings Call

July 23, 2024

I am Vipul Garg, Vice President, Investor Relations at MakeMyTrip Limited.

Vipul Garg: Vipul Garg, Vice-President, Investor Relations, MakeMyTrip Ltd., Welcome to our Fiscal 25 First Quarter Earnings Webinar. Today's event will be 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 IAEA website shortly after the conclusion of today's event.

Prashant Kothari: Okay, thanks. And one of the questions that we frequently ask you, Vipul, any update on the India Listing Fund? I think there's nothing more to add over there. Like we have said, you know, we're not really kind of looking at raising any funds right now and, therefore, not looking at any capital market activity per se.

Speaker Change: And welcome to our Fiscal 25 First Quarter Earnings Webinar. Today's event will be 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.

Speaker Change: As a reminder, this live event is being recorded by the company and will be made available for replay on our IAEA website shortly after the conclusion of today's event.

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 Securities Litigation Reform Act of 1995.

Vipul Garg: These statements are not guarantees of future performance, are subject to inherent uncertainties, 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 changed 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 2, 2024. Copies of these filings are available from the SEC or from the company's Investor Relations Department.

Speaker Change: At the end of these prepared remarks, we will also be hosting a Q&A session.

Speaker Change: 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 Securities Litigation Reform Act of 1995.

Speaker Change: These statements are not guarantee of future performance, are subject to inherent uncertainties and actual results may differ materially.

Speaker Change: 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.

Speaker Change: 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 2, 2024.

Speaker Change: Copy of these filings are available from the SEC or from the company's Investor Relations Department. I would like to now turn the call over to Rajesh for his remarks. Over to you, Rajesh.

Vipul Garg: I would like to now turn the call over to Rajesh for his remarks. Over to you, Rajesh. Thank you, Vipul. Welcome everyone to our first quarterly call for fiscal 2025. We are pleased to share that we have started the financial year on a strong note with the highest ever quarterly gross bookings, revenue, and adjusted operating profit, with robust growth across all our businesses. We delivered these strong numbers despite the late start of the season for leisure travel due to general elections in April. Ross booking value for Q1 was more than $2.4 billion, with growth of 22% year-on-year in constant currency terms, and the adjusted operating profit was $39.1 million, registering a growth of about 30% year-on-year.

Vipul Garg: But should there be a... All right, perfect. Thank you very much. Thank you, Prashant. At this time, we have no further questions. Any last questions any attendee wants to ask? Otherwise, we can end the call.

Vipul Garg: So Rajesh, we have no further questions; over to you for your closing remarks. Thank you, Vipul, and thank you, everyone. Thank you for all, you know, asking the right set of questions. They were all relevant.

Rajesh Magow: And thank you for your patience. Look forward to seeing you next quarter. Thanks, everyone. Thank you, everyone. Can I please disconnect the call? Thank you.

Rajesh Magow: Thank you, Vipul. Welcome everyone to our first quarter call for Fiscal 2025.

Vipul Garg: I am Vipul Garg, Vice President, Investor Relations at MakeMyTrip Ltd. And welcome to our Fiscal 25 First Quarter Earnings Webinar. Today's event will be 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.

Vipul Garg: As a reminder, this live event is being recorded by the company and will be made available for replay on our IAEA website shortly after the conclusion of today's event. At the end of these prepared remarks, we will also be hosting a Q&A session. Furthermore, certain statements made during today's event may be considered forward-looking statements within the meaning of the safe harbor provision of the U.S. Private Securities Litigation Reform Act of 1995.

Rajesh Magow: We are pleased to share that we have started the financial year on a strong note, with the highest ever quarterly gross bookings, revenue and adjusted operating profit, with robust growth across all our businesses.

Vipul Garg: These statements are not guarantees of future performance, are subject to inherent uncertainties, 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 changed 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 2, 2024. Copies of these filings are available from the SEC or from the company's Investor Relations Department. I would like to now turn the call over to Rajesh for his remarks. Over to you, Rajesh.

Speaker Change: We delivered these strong numbers despite the late pickup of the season for leisure travel due to general elections in April .

Rajesh Magow: Welcome everyone to our first quarterly call for fiscal 2025. We are pleased to share that we have started the financial year on a strong note, with the highest ever quarterly gross bookings, revenue, and adjusted operating profit, with robust growth across all our businesses. We delivered these strong numbers despite the late pickup of the season for leisure travel due to general elections in April. Gross booking value for Q1 was more than $2.4 billion, with growth of 22% year-on-year in constant currency terms, and the adjusted operating profit was $39.1 million, registering a growth of about 30% year-on-year.

Speaker Change: Gross booking value for Q1 was more than $2.4 billion with growth at 22% year-on-year in constant currency terms and the adjusted operating profit was $39.1 million, registering a growth of about 30% year-on-year.

Rajesh Magow: Our strategy of catering to various travel use cases and targeting different demand segments on multiple customer touch points is helping us deliver sustained growth. A wide spectrum of travel products is also helping us increase our share of the wallet of Indian travelers' overall travel spend, and there is no cap on the number of times one can avail discounts on flight add-ons, such as zero cancellation, in-flight meals, free day change, etc. Although it is the early days of the new MMT Black program rollout, we've already seen improvement in the operating metrics compared to the earlier version, indicating better value for our Black customers.

Rajesh Magow: Our strategy of catering to various travel use cases and targeting different demand segments on multiple customer touch points is helping us deliver sustained growth. A wide spectrum of travel products is also helping us increase our share of the wallet of Indian travelers' overall travel spend, and there is no cap on the number of times one can avail discounts on flight add-ons such as zero cancellation, in-flight meals, free day change, etc. Although it is the early days of the new MMT Black program rollout, we have already seen improvement in the operating metrics compared to the earlier version, indicating better value for our Black customers. On the macroeconomic front, India's robust economic growth has boosted the disposable income of its growing upper middle class, leading to higher disposable income in their hands.

Speaker Change: Our strategy of catering to various travel use cases and targeting different demand segments on multiple customer touchpoints is helping us deliver sustained growth.

Speaker Change: A wide spectrum of travel products is also helping us increase our share of the wallet of Indian travellers' overall travel spend.

Speaker Change: We now have a lifetime transacted user base of 75 million across all our three brands to build strong,

Speaker Change: To build stronger loyalty, we relaunched our flagship loyalty program MMT Black with simplified two tiers and with new benefits such as guaranteed room upgrades and meal upgrades for participating hotels and homestays.

Speaker Change: [inaudible]

Speaker Change: Although it is early days of the new MMT black program rollout, we have already seen improvement in the operating metrics compared to the earlier version, indicating better value for our black customers.

Rajesh Magow: On the macroeconomic front, India's robust economic growth has boosted the disposable income of its growing upper middle class, leading to higher disposable income in their hands. As a result, there is a visible increase in spending on discretionary services, including travel and tourism. On the other hand, the lower middle class is also a growing number, acting as a booster for domestic travel. Besides, the increasing number of households headed by the younger generation is helping drive a cultural shift toward taking more breaks in a year.

Speaker Change: On macroeconomic front, India's robust economic growth has boosted the disposable income of

Rajesh Magow: As a result, there is a visible increase in spending on discretionary services, including travel and tourism. On the other hand, the lower middle class is also a growing number, acting as a booster for domestic travel. Besides, the increasing number of households headed by the younger generation is helping drive a cultural shift toward taking more breaks during the year.

Speaker Change: As a result, there is a visible increase in spending on discretionary services, including travel and tourism. On the other hand, the lower middle class is also a growing number, acting as a booster for domestic travel.

Speaker Change: Besides, the increasing number of households headed by the younger generation is helping drive a cultural shift towards taking more breaks in a year. The rise of flexible working arrangements has also influenced travel behavior.

Rajesh Magow: The rise of flexible working arrangements has also influenced travel behavior. Many people are combining work and leisure through vacations and extended stays in different locations. The shift in work culture allows individuals to travel more frequently without compromising their professional responsibilities. As per a McKinsey report, India is currently the world's 6th largest domestic travel market by spending, with a growing middle class powering travel spending, growth of roughly 9% per year. India's domestic market could overtake Japan's and Mexico's to become the world's fourth largest by 2030.

Speaker Change: Many people are combining work and leisure through vocations and extended stays in different locations. The shift in work culture allows individuals to travel more frequently without compromising their professional responsibilities.

Speaker Change: As per a McKinsey report, India is currently the world's 6th largest domestic travel market by spending, with growing middle class powering travel spending, growth of roughly 9% per year.

Speaker Change: India's domestic market could overtake Japan's and Mexico's to become the world's fourth largest by 2030.

Rajesh Magow: Domestic air passenger traffic in India is projected to double by 2030, boosted by government initiatives to build infrastructure and connect underserved domestic airports. Let me now turn to the business segment, starting with our air ticketing business. A positive development in this quarter was international outbound travel. As reported earlier, international outbound travel recovered fully in FY24, but in this quarter, we witnessed robust growth of 25% year-on-year in the international air segment. It now contributes over 37% to our air ticketing revenue.

Rajesh Magow: Domestic air passenger traffic in India is projected to double by 2030, boosted by government initiatives to build infrastructure and connect underserved domestic airports. Let me now turn to the business segment, starting with our air-ticketing business. A positive development in this quarter was international outbound travel. As reported earlier, international outbound travel recovered fully in fiscal year 24, but in this quarter, we witnessed robust growth of 25% year-on-year in international air segments.

Speaker Change: Domestic air passenger traffic in India is projected to double by 2030, boosted by government initiatives to build infrastructure and connect underserved domestic airports.

Speaker Change: Let me now turn to the business segment, starting with our air-ticketing business.

Speaker Change: A positive development in this quarter was international outbound travel.

Speaker Change: As reported earlier, international outbound travel recovered fully in FY24, but in this quarter we witnessed robust growth of 25% year-on-year in international air segments. It now contributes over 37% to our air ticketing revenue.

Rajesh Magow: It now contributes over 37% to our air ticketing revenue. The long-term outlook on outbound travel from India is also very positive, with fast-growing pools of first-time tourists. Many short-haul and long-haul destinations are investing in increasing their awareness of Indian tourists, considering India a very important source market. A couple of emerging destinations like Turkey and Kazakhstan, the number of Indian tourists has significantly grown and touched new highs. For Kazakhstan, India is now the third largest source market, witnessing a threefold increase in Indian tourists compared to 2021. For Turkey, the number of tourists from India surged 34% in the first five months of 2024 compared to the same period last year.

Rajesh Magow: Long-term outlook on outbound travel from India is also very positive, with fast-growing pools of first-time tourists. Many short-haul and long-haul destinations are investing to increase their awareness of Indian tourists, considering India a very important source market. With a couple of emerging destinations like Turkey and Kazakhstan, the number of Indian tourists has significantly grown and touched new heights. For Kazakhstan, India is now the third largest source market, witnessing a three-fold increase in Indian tourists compared to 2021. For Turkey, the number of tourists from India surged 34% in the first five months of 2024 compared to the same period last year.

Speaker Change: Long-term outlook on outbound travel from India is also very positive with fast-growing pools of first-time tourists.

Speaker Change: Many short haul and long haul destinations are investing to increase their awareness for Indian tourists, considering India a very important source market.

Speaker Change: A couple of emerging destinations like Turkey and Kazakhstan, the number of Indian tourists has significantly grown and touched new highs. For Kazakhstan, India is now the third largest source market.

Speaker Change: Witnessing a three-fold increase in Indian tourists compared to 2021.

Speaker Change: For Turkey, the number of tourists from India has surged 34% in the first 5 months of 2024 compared to same period last year. We continue to invest in this opportunity and aim to increase our share of revenue from this segment over the years.

Rajesh Magow: We continue to invest in this opportunity and aim to increase our share of revenue from this segment over the years. In the domestic air market, the supply situation has improved marginally. The total number of domestic departures saw a slight increase in Q1 compared to the previous quarter. We expect the domestic supply situation to improve further in the second half of the financial year. The growth in the domestic air market continues to be muted.

Speaker Change: In the domestic air market, the supply situation improved marginally. The total number of domestic departures

Speaker Change: So, a slight increase in Q1 compared to the previous quarter.

Speaker Change: We expect the domestic supply situation to improve further from the second half of the financial year. The growth in the domestic air market continues to be muted. On a flown basis, the market grew by 4.5% year-on-year and we continue to grow faster than the market.

Rajesh Magow: On a flown basis, the market grew by 4.5% year on year, and we continue to grow faster than the market. To further improve our product experience, we have introduced a JNAI-assisted chatbot named Myra in our international flight booking funnel. Myra assists users with various flight-related queries and actions, such as applying conditional filters, obtaining visa or transit visa information, understanding baggage policies, learning about cancellation, date change penalties, etc. Additionally, it can suggest the cheapest travel days for a destination and perform searches based on simple chat commands.

Speaker Change: To further improve our product experience, we have introduced JNAI-assisted chatbot named Myra on our international flight booking funnel. Myra assists...

Speaker Change: Users with various flight related queries and actions.

Speaker Change: Additionally, it can suggest the cheapest travel days for a destination and perform searches based on simple chat commands.

Rajesh Magow: AI-based feature enhancement is the journey we plan to make Myra more and more intelligent using consumer insights in the future. Additionally, we have further expanded our integrated eVisa feature now for five additional destinations, such as Singapore, Indonesia, Vietnam, Azerbaijan, and Sri Lanka. To increase affordability and address cash flow issues, we have introduced a new EMI feature that converts the international flight price into a six-month EMI plan, thus addressing affordability concerns. On domestic flights, we now have premium airport services such as meet and assist, porter, and buggy transfer, along with regular flight booking.

Speaker Change: AI-based feature enhancement is a journey we plan to make Myra more and more intelligent using consumer insights in the future.

Rajesh Magow: Additionally, we have further expanded our integrated eVisa feature now to cover five additional destinations, like Singapore, Indonesia, Vietnam, Azerbaijan, and Sri Lanka. Additionally, to increase affordability and address cash flow issues, we have introduced a new EMI feature that converts the international flight price into a six-month EMI plan, thus addressing affordability concerns. On domestic flights, we now have premium airport services such as meet and assist, porter, and buggy transfer, along with regular flight booking.

Speaker Change: Additionally, we have further expanded our integrated e-visa feature now for five additional destinations.

Speaker Change: Singapore, Indonesia, Vietnam, Azerbaijan, and Sri Lanka.

Speaker Change: To increase affordability and address cash flow issues, we have introduced a new EMI feature that converts the international flight price into a 6-month EMI plan, thus addressing affordability concerns.

Speaker Change: On domestic flights, we now have premium airport services such as meet-and-assist, porter and buggy transfer, along with regular flight booking. We plan to expand this feature on our international funnel as well soon.

Rajesh Magow: We plan to expand this feature on our international funnel as well soon, thereby enriching the flight booking experience with additional services. Meanwhile, our accommodation business, which includes hotels, homestays, and packages, continues to witness strong growth. We recorded over 27% year-on-year growth in the adjusted margin on a constant currency basis, contributing 44% to the overall revenue. As we improve our penetration, we continue to add more properties across the country and now offer properties in more than 2100 cities in India.

Speaker Change: Thereby enriching the flight booking experience with additional services.

Speaker Change: Our accommodation business that includes hotels, homestays, and packages continues to witness strong growth. We recorded over 27% year-on-year growth in the adjusted margin on a constant currency basis, contributing 44% to the overall revenue.

Speaker Change: As we improve our penetration, we continue to add more properties across the country and now offer properties in 2100 plus cities in India.

Rajesh Magow: Our international outbound business for hotels continues to scale as well, contributing 15% of total accommodation business revenue. On the customer experience side, we have introduced the Street View feature to enhance the user experience by providing an accurate view of the external surroundings of the properties, ensuring safety and visual appeal.

Speaker Change: Our international outbound business for hotels continues to scale as well, contributing 15% of total accommodation business revenue.

Speaker Change: On the customer experience side, we have introduced the street view feature to enhance the user experience by providing an accurate view of the external surroundings of the properties, ensuring safety and visual appeal.

Rajesh Magow: We are the first platform in India to introduce this capability for both domestic and international properties. We are also now giving personalized recommendations for a customer across room types, meals, and amenities. For example, highlighting options for properties in remote locations where meal plans are essential.

Speaker Change: We are the first platform in India to introduce this capability for both domestic and international properties. We are also now giving personalized recommendations for a customer across home types, meals and amenities. For example, highlighting options for properties in remote locations where meal plans are essential.

Rajesh Magow: This intervention not only enhances user convenience but also helps improve conversion. We have also launched 360-degree imagery for virtual tours, initially covering 200 mid and premium properties with plans to expand over 1000 hotels. This feature gives users an immersive experience visualizing hotel rooms and amenities, leading to a higher conversion rate among users who interact with it and helping us promote higher ASP properties.

Rajesh Magow: This intervention not only enhances user convenience but also helps improve conversion. We have also launched 360-degree imagery for virtual tours, initially covering 200 mid and premium properties with plans to expand over 1000 hotels. This feature gives users an immersive experience, visualizing hotel rooms and amenities, leading to a higher conversion rate among users who interact with it and helping us promote higher ASP properties.

Speaker Change: This intervention not only enhances user convenience, but also helps improve conversion. We have also launched 360° imagery for virtual tours, initially covering 200 mid and premium properties with plans to expand over 1000 hotels.

Speaker Change: This feature gives users an immersive experience, visualizing hotel rooms and amenities, leading to a higher conversion rate among users who interact with it and helping us promote higher ASP properties.

Rajesh Magow: Our homestay business continues to grow with increasing coverage of destinations. During the quarter, we sold over 19,300. Please Like, Share, Comment, and Subscribe. As part of our MOU signed with the Goa government, we launched Goa Beyond Beaches, promoting homestays near temples and heritage homestays in cities.

Rajesh Magow: Our homestay business continues to grow with increasing coverage of destinations. During the quarter, we sold over 19,300. Thank you very much. Promoting homestays near temples and heritage homestays in cities.

Speaker Change: Our homestay business continues to grow with increasing coverage of destinations. During the quarter, we sold over 19,300 homes.

Speaker Change: plus unique properties across 850 plus unique destinations with strong growth across business and leisure destinations. We endeavor to grow this category by offering unique experiences to our customers.

Speaker Change: As part of our MOU signed with the Goa government, we launched Goa Beyond Beaches campaign promoting homestays near temples and heritage homestays in cities.

Rajesh Magow: The collaborative effort aims to further propel tourism in Goa and position it as a vibrant year-round destination moving beyond its iconic sun, sand, and beaches. MakeMyTrip, in collaboration with Neeti Aayog, launched Project METRI, a women's entrepreneurship program aimed to empower female entrepreneurs from Northeast India by leveraging the entire potential of homestays as a pathway to entrepreneurship, economic empowerment, and independence. Thirty hosts attended the inaugural workshop, where comprehensive training focusing on key areas such as finance, legal, taxation, hospitality, and OTA management was provided to help them set up and run a successful homestay business.

Rajesh Magow: The collaborative effort aims to further propel tourism in Goa and position it as a vibrant year-round destination moving beyond its iconic sun, sand, and beaches. MakeMyTrip, in collaboration with Neeti Aayog, launched Project METRI, a women's entrepreneurship program aimed to empower female entrepreneurs from Northeast India by leveraging the untapped potential of homestays as a pathway to entrepreneurship, economic empowerment, and independence. Thirty hosts attended the inaugural workshop, where comprehensive training focusing on key areas such as finance, legal, taxation, hospitality, and OTA management was provided to help them set up and run a successful homestay business.

Speaker Change: The collaborative effort aims to further propel tourism in Goa and position it as a vibrant, year-round destination moving beyond its iconic sun, sand and beaches.

Speaker Change: MakeMyTrip, in collaboration with Neeti Aayog, launched Project METRI, a women entrepreneurship program aimed to empower female entrepreneurs from Northeast India.

Speaker Change: by leveraging the entire potential of homestays as a pathway to entrepreneurship.

Rajesh Magow: Our holiday packages business delivered robust performance as well, achieving highest ever gross booking numbers, driven by strong growth in international outbound packages, with new destinations like CIS countries, America, and Japan leading the growth. Our packages team added new products like next-gen adventures, specifically targeting millennials and Gen Z. These are experiential group tours catering to the 18 to 35-year-old age group.

Speaker Change: Our holiday packages business delivered robust performance as well, achieving highest ever gross booking numbers driven by strong growth in international outbound packages, with new destinations like CIS countries, America and Japan leading the growth.

Speaker Change: Our packages team added new products like next-gen adventures, specifically targeting millennials and Gen Z.

Speaker Change: These are experiential group tours catering to the 18 to 35 years old age group.

Rajesh Magow: Our bus business continues to grow well, driven by strong demand and an expansion of supply. The buoyancy in supply was due to the addition of new buses by many existing operators across the country as the delivery of new buses gathered pace. However, an increase in supply and a reduction in diesel prices has led to a fall in average seat price in most regions, particularly in South India, which helped in robust volume growth for us. Keeping women's preferences and safety in mind, we launched a women's special feature that shows info such as buses that are highly rated by women, number of women traveling with them, women-specific red deals, reviews by women, etc.

Speaker Change: Our bus business continues to grow well, driven by strong demand and expansion of supply. The buoyancy in supply was due to the addition of new buses by many existing operators across the country as the delivery of new buses gathered pace.

Speaker Change: However, an increase in supply and a reduction in diesel prices has led to a fall in average seat price in most regions, particularly in South India, which helped in robust volume growth in the segment for us.

Speaker Change: Keeping women's preferences and safety in mind, we launched a women's special feature that shows info such as buses that are highly rated by women, number of women travelling along, women-specific red deals, reviews by women etc.

Rajesh Magow: 45% of women bookings are through this funnel with higher conversion rates and NPS than the regular funnel. We also launched a Tamil booking funnel on the Android platform on April 24, in addition to the existing Hindi funnel, helping us cater to new regional users and drive deeper penetration. For our real customers, we continue to add product features and strengthen our value proposition. As a result, we continue to gain market share in trained bookings, leveraging all our brands, including MMT, GOI, Vibo, and RedBus. For intercity cabs, we integrated supply from Savari and were able to cater to peak season demand with high availability, fulfillment, and quality of service.

Speaker Change: 45% of women bookings are through this funnel with higher conversion rates and NPS than the regular funnel.

Speaker Change: We also launched Tamil Booking Funnel on Android platform in April 24, in addition to the existing Hindi Funnel, helping us cater to new regional users and drive deeper penetration.

Speaker Change: For our rail customers, we continue to add product features and strengthen our value proposition. As a result, we continue to gain market share in train booking, leveraging all our brands, including MMT, Coevibo, and Redbus.

Speaker Change: For intercity cabs, we integrated supply from Savari and were able to cater to peak season demand with high availability, fulfillment and quality of service. We have also scaled up assisted sales where high value bookings and complex itineraries are routed to agents who help with the conversion.

Rajesh Magow: We have also scaled up assisted sales where high-value bookings and complex itineraries are routed to agents who help with the conversion. Our corporate travel business via both our platforms, that is, MyBiz and Quest2Travel, is witnessing strong growth. Our active corporate customer count on MyBiz is now over 59,700. And for Quest2Travel, the active customer count has reached 458 large corporations compared to 272 large customers in the same quarter last year.

Speaker Change: Our corporate travel business via both our platforms, i.e., MyBiz and Quest2Travel, is witnessing strong growth.

Speaker Change: Our active corporate customer count on MyBiz is now over 59,700+, and for Quest2Travel the active customer count has reached 458 large corporates compared to 272 large customers in the same quarter last year.

Rajesh Magow: We have increased the personalization quotient on the platform by giving customized property rankings based on user preferences and featuring international hotels popular with Indian travelers and tailored rankings for business trips. As regard to our UAE business, we had a successful marketing campaign called, "Let's MakeMyTrip in the UAE." In time to capture the travel demand for the Eid season, the focus was to grow our brand awareness with the non-Indian population. Our loyalty program, MMT Select, in the UAE is continuing to get strong traction as well.

Speaker Change: We have increased the personalization quotient on the platform by giving customized property rankings based on user preferences and featuring international hotels, popular with Indian travelers and tailored ranking for business trips.

Speaker Change: As regard to our UAE business, we had a successful marketing campaign. Let's MakeMyTrip in the UAE.

Speaker Change: In time to capture the travel demand for the Eid season, the focus was to grow our brand awareness with the non-Indian population.

Speaker Change: Our loyalty program MMT Select in UAE is continuing to get strong traction as well. We now have close to 473,000 enrollments into the program and approximately 40,000 members are already in Silver and Gold tiers.

Rajesh Magow: We now have close to 473,000 enrollments in the program, and approximately 40,000 members are already in the Silver and Gold tiers. With this, I now hand over the call to Mohit for the highlights of the quarter.

Rajesh Magow: We now have close to 473,000 enrollments in the program, and 40,000, approximately 40,000 members are already in the Silver and Gold tiers. With this, let me now hand over the call to Mohit for the highlights of the quarter.

Speaker Change: With this, let me now hand over the call to Mohit for the financial highlights of the quarter.

Mohit Kabra: Thanks Rajesh and hello everyone. We've started the year on a strong note, posting our highest ever quarterly gross bookings of $2.4 billion. Compared to $2 billion in the same quarter last year, they were 21.6% year-on-year constant currency growth. Apart from strong growth in bookings, the improvement in the mix of higher-margin businesses compared to the same quarter last year has helped us post 31.5% year-on-year constant currency growth in revenue and achieve our highest ever quarterly revenue of $254.5 million as compared to $196.7 million in the same quarter last year.

Mohit Kabra: Thanks Rajesh and hello everyone. We've started the year on a strong note, posting our highest ever quarterly gross bookings of $2.4 billion. Compared to $2 billion in the same quarter last year, we were 21.6% year-on-year constant currency growth. Apart from strong growth in bookings, the improvement in the mix of higher-margin businesses compared to the same quarter last year has helped us post 31.5% year-on-year constant currency growth in revenue and achieve our highest ever quarterly revenue of up to $54.5 million as compared to $196.7 million in the same quarter last year.

Mohit Kabra: Thanks Rajesh and hello everyone.

Mohit Kabra: We have started the year on a strong note, posting our highest ever quarterly gross bookings of $2.4 billion compared to $2 billion in the same quarter last year with a 21.6% year-on-year constant currency growth.

Mohit Kabra: Apart from strong growth in bookings, the improvement and mix of higher-margin businesses

Mohit Kabra: Compared to the same quarter last year has helped us post 31.5% year-on-year constant currency growth in revenue and achieving our highest ever quarterly revenue of 254.5 million dollars as compared to 196.7 million dollars in the same quarter last year.

Mohit Kabra: Moving on to our segment results, our 8 ticketing gross bookings for the quarter came in at $1.4 billion, witnessing a year-on-year growth of 17% in cost and current. Registered Margin was $89.1 million, registering a year-on-year growth of 21.2% in constant currency. Take rates for the air ticketing business were on expected lines at about 6.4%.

Mohit Kabra: Moving on to our segment results, our A ticketing gross bookings for the quarter came in at $1.4 billion, witnessing a year-on-year growth of 17% in cost and current. Registered Margin was $89.1 million dollars, registering a year-on-year growth of 21.2% in constant currency. Take rates for the air ticketing business were on expected lines at about 6.4%.

Mohit Kabra: Moving on to our segment results, our 8 ticketing gross bookings for the quarter came in at $1.4 billion, witnessing a year-on-year growth of 17% in cost and currency.

Speaker Change: Registered margin is $89.1 million dollars, registering a year-on-year growth of 21.2% in constant currency.

Speaker Change: Take rates for the air ticketing business were on expected lines at about 6.4%. Our international air ticketing business posted strong year-on-year revenue growth of over 37% in constant currency and now accounts for over 37% of adjusted margins in the air ticketing business.

Mohit Kabra: Our international air ticketing business posted strong year-on-year revenue growth of over 37% in constant currency and now accounts for over 37% of the company's interest margins in the air ticketing business. Gross bookings for the quarter in the hotels and packages segment came in at $611.3 million, registering a strong growth of 24.7% year-on-year on constant currency terms. Adjusted margin growth came in higher at 29.6% year-on-year, resulting in an adjusted margin of $107.3 million during the quarter. The take rates during the quarter in this segment came in on expected lines at 17.5%.

Mohit Kabra: Our international air ticketing business posted strong year-on-year revenue growth of over 37% in constant currency and now accounts for over 37% of the company's interest margins in the air ticketing business. Gross bookings for the quarter in the hoodles and packages segment came in at $611.3 million, registering a strong growth of 24.7% year-on-year on constant currency terms. Adjusted margin growth came in higher at 29.6% year-on-year, resulting in an adjusted margin of $107.3 million during the quarter. The take rates during the quarter in this segment came in on expected lines at 17.5%.

Speaker Change: Gross bookings for the quarter in the hoodles and packages segment came in at $600.3 million, registering a strong growth of 24.7% year-on-year on constant currency terms.

Speaker Change: Mohit Kabra, Vipul Garg

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 international HMP business grew 88% year-on-year in constant currency and now accounts for about 15% of the adjusted margins from this segment. In the bus ticketing business, gross bookings for the quarter came in at $316 million, growing at 15.9% year-on-year in constant currency. Adjusted margin came in at $32.4 million, registering a year-on-year growth of over 20.7% in constant currency. The tickets for the business came in line at about 10.2% for 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 international HMP business grew 88% year on year in constant currency and now accounts for about 15% of the adjusted margins from this segment. In the bus ticketing business, gross bookings for the quarter came in at $316 million, growing at 15.9% year-on-year in constant currency. Existing margin came in at $32.4 million, registering a year-on-year growth of over 20.7% in constant currency. The take rates for the business came in line at about 10.2% for the quarter.

Speaker Change: We continue to drive supply expansion by going deeper and wider in the Indian market and growing directly-contacted hotels in key international markets which are of interest to Indian overseas travelers.

Speaker Change: Our international HMP business grew 88% year-on-year in constant currency and now accounts for about 15% of the adjusted margins from this segment.

Speaker Change: In the bus ticketing business, gross bookings for the quarter came in at $316 million, growing at 15.9% year-on-year in constant currency.

Speaker Change: Existing margin came in at $32.4 million, resisting a year-on-year growth of over 20.7% in constant currency.

Speaker Change: The take rate for the business came in line at about 10.2% for the quarter.

Mohit Kabra: Besides driving strong bookings and revenue growth, we continue to remain focused on building strong operating cost efficiencies. As a result, our expenses, which are largely in the nature of fixed costs such as personal expenses and selling or general legislative expenses, have shown operating leverage on a year-on-year basis. Considering that the reported quarter was a seasonally high-leisure travel quarter coinciding with some softness in the early part of the quarter due to general elections, we have slightly increased the spend on marketing by rolling out brand campaigns leveraging cricketing events during the quarter.

Mohit Kabra: Besides driving strong bookings and revenue growth, we continue to remain focused on building strong operating cost efficiencies. As a result, our expenses, which are largely in the nature of fixed costs such as personal expenses and selling or general legislative expenses, have shown operating leverage on an annual basis. Considering that the reported quarter was a seasonally high-leisure travel quarter coinciding with some softness in the early part of the quarter due to general elections, we have slightly increased the spend on marketing by rolling out brand campaigns leveraging cricketing events during the quarter.

Speaker Change: Besides driving strong bookings and revenue growth, we continue to remain focused on building

Speaker Change: Mohit Kabra, Vipul Garg

Speaker Change: Considering that the reported quarter was a seasonally high-leisure travel quarter coinciding with some softness in the early part of the quarter due to general elections,

Mohit Kabra: Accordingly, our marketing and sales promotion expenses on customer action costs came in at 4.8% of gross bookings, which is slightly higher than the 4.6% in the same quarter last year. As a result of the above, we are pleased to report our highest ever quarterly adjusted operating profit of $39.1 million and our highest ever adjusted operating profit margin of 1.64% as a percentage of gross bookings. The comparable adjusted operating profit during the same quarter last year was $30.1 million in absolute terms and 1.52% in percentage terms.

Speaker Change: Mohit Kabra, Vipul Garg

Speaker Change: came in at 4.8% of gross bookings which is slightly higher than the 4.6% in same quarter last year.

Speaker Change: As a result of the above, we are pleased to report our highest ever

Speaker Change: Quarterly Adjusted Operating Profit of $39.1 Million

Speaker Change: and our highest ever adjusted operating profit margin at 1.64% as a percentage of gross bookings. The comparable adjusted operating profit during the same quarter last year was $30.1 million in absolute terms and 1.52% in percentage terms.

Mohit Kabra: Our cash generation continues to be robust. During the quarter, we added net cash from operations to the tune of $42.9 million. We also saw temporary working capital releases as expected in a seasonally strong leisure travel quarter. As a result of this, our cash and cash equivalents at the end of the quarter stood at about $676 million.

Mohit Kabra: Cash generation continues to be robust. During the quarter, we added net cash from operations to the tune of $42.9 million. We also saw temporary working capital releases as expected in a seasonally strong leisure travel quarter. As a result of this, our cash and cash equivalents at the end of the quarter stood at about $676 million.

Speaker Change: Our cash generation continues to be robust. During the quarter, we added net cash from operations to the tune of $42.9 million. We also saw temporary working capital releases as expected in a seasonally strong leisure travel quarter.

Speaker Change: As a result of this, our cash and cash equivalents at the end of the quarter

Mohit Kabra: Besides maintaining a healthy watch list, we will continue to leverage this strong cash position to invest in potential travel and travel-related organic as well as niche inorganic growth opportunities. Last quarter, we had called out our intent to pursue opportunistic share repurchases or buybacks. While no shares were repurchased from the market during the reported quarter, we remain committed to the program if and when the opportunity arises.

Mohit Kabra: Besides maintaining a healthy watch list, we will continue to leverage this strong cash position to invest in potential travel and travel related organic as well as niche in organic growth opportunities. Last quarter, we had called out our intent to pursue opportunistic share repurchases or buybacks. While no shares were repurchased from the market during the reported quarter, we remain committed to the program if and when the opportunity arises. Before we open up the call for Q&A, I would like to mention that our investments over the years in key strategic areas such as expansion of travel and travel-related services offered on our platforms, the increasing breadth of such services across large number of cities in the country, Sharper targeting of customer cohorts via non-B2C platforms such as MyBiz or Quest2Travel for corporate customers and MyPartner and MyAffiliate for wider penetration and the underneath investment in technology have been yielding good results and helping us grow faster than the industry.

Speaker Change: Mohit Kabra, Vipul Garg

Speaker Change: Last quarter, we had called out our intent to pursue opportunistic share repurchases or buyback. While no shares were repurchased from the market during the reported quarter, we remain committed to the program if and when the opportunity arises.

Mohit Kabra: Before we open up the call for Q&A, I would like to mention that our investments over the years in key strategic areas such as the expansion of travel and travel-related services offered on our platforms, the increasing breadth of such services across a large number of cities in the country, Sharper targeting of customer cohorts via non-B2C platforms such as MyBiz or Quest2Travel for corporate customers and MyPartner and MyAffiliate As we begin fiscal year 25, we look forward to continued investment in these areas, and we'll keep sharing progress on any significant milestones achieved.

Speaker Change: Before we open up the call for Q&A, I would like to mention that our investments over the years in key strategic areas such as expansion of travel and travel related services offered on our platforms. Thank you very much.

Speaker Change: Mohit Kabra, Vipul Garg

Speaker Change: Sharper targeting of customer cohorts via non-B2C platforms such as MyBase or Quest2Travel for corporate customers and MyPartner and MyAffiliate for wider penetration and the underneath investment in technology have been yielding good results and helping us grow faster than the industry.

Mohit Kabra: As we begin fiscal year 25, we look forward to continued investment in these areas, and we'll keep sharing progress on any significant milestones achieved. For instance, our corporate business via our MyBiz and Q2D platforms crossed the $200 million gross booking milestone during the reported quarter. With that, I'd like to turn the call back to Vipul for Q&A.

Speaker Change: As we begin fiscal year 25, we look forward to continued investments in these areas and we'll keep sharing progress on any significant milestones achieved.

Mohit Kabra: For instance, our corporate business via MyBiz and Q2D platforms crossed the $200 million gross booking milestone during the reported quarter. With that, I'd like to turn the call back to Vipul for Q&A. Thanks Mohit. Any participant who wishes to ask a question can press the raise hand button on their screen, and we will take the questions one by one. The first question is from the line of Sachin Salgaonkar of Bank of America. Sachin, you may please ask your question now.

Speaker Change: For instance, our corporate business via our MyBiz and Q2D platforms crossed the $200 million gross booking milestone during the reported quarter. With that, I'd like to turn the call back to Vipul for Q&A.

Vipul Garg: Thanks Mohit. Any participant who wishes to ask a question can press the raise hand button on their screen, and we will take the questions one by one. The first question is from the line of Sachin Salgaonkar of Bank of America. Sachin, you may please ask your question now.

Vipul Garg: Thanks Mohit.

Vipul Garg: Any participant who wish to ask a question?

Vipul Garg: can press the raise hand button on their screen and we will take the questions one by one. The first question is from the line of...

Vipul Garg: Sachin Salgaonkar of Bank of America. Sachin, you may please ask your question now.

Sachin Shrikant Salgaonkar: Thanks, Vipul. Hi all. Congratulations on a good start to our operation numbers.

Vipul Garg: Thanks, Vipul. Hi all. Congratulations on a good send of our operation numbers. I have three questions. My first question is on the tax, what we saw this quarter, just wanted to understand, you know, it looks like a full tax that, you know, do you guys have tax credits? Are they fully utilized? And how should one think about the tax rate going forward? So Sachin, you might recall, as we reported the full fiscal year last quarter, we had taken a deferred tax asset that kind of, you know, had been created, and we had taken that benefit in the P&L.

Sachin Shrikant Salgaonkar: Thanks, Vipul. Hi all. Congratulations on a good start of our operation numbers.

Sachin Shrikant Salgaonkar: I have three questions. My first question is on the tax cut we saw this quarter. I just wanted to understand, you know, it looks like a full tax cut. Do you guys have tax credits? Are they fully utilized? And how should one think about the tax rate going forward?

Sachin Shrikant Salgaonkar: I have three questions. My first question is on the tax that we saw this quarter. I just wanted to understand, you know, it looks like a full tax. Do you guys have tax credits? Are they fully utilized? And how should one think about the tax rate going ahead?

Mohit Kabra: So Sachin, you might recall, as we reported the full fiscal year last quarter, we had taken a deferred tax asset that was kind of, you know, created, and we had taken that benefit in the P&L. And therefore, what you see now is a reversal of the deferred tax asset created to the extent of, you know, profits generated during the quarter. So it's going to be more of a reversal of the deferred tax asset that had been created.

Vipul Garg: And therefore, what you see now is a reversal of the deferred tax asset created to the extent of, you know, profits generated during the quarter. So it's going to be more of a reversal of the deferred tax asset that had been created. And this is going to continue for at least for the next couple years, and we would therefore be kind of utilizing our, you know, carried forward tax losses to minimize our actual tax payouts.

Sachin Shrikant Salgaonkar: So Sachin, you might recall, as we reported the full fiscal year last quarter, we had taken a deferred tax.

Sachin Shrikant Salgaonkar: And therefore, what you see now...

Sachin Shrikant Salgaonkar: is a reversal of the Deferred Tax Asset created

Speaker Change: to the extent of, you know, profits generated during the quarter, so it's going to be more

Speaker Change: Mohit Kabra, Vipul Garg

Mohit Kabra: And this is going to continue for at least for the next couple of years and give it, therefore, be kind of utilizing our, you know, carried forward tax losses to minimize our actual tax payouts. So this is more of, I would say, an accounting treatment whereby you kind of create the deferred tax asset in advance as soon as you have a line of clarity in terms of, you know, realizing, you know, these tax losses and saving on the tax outgo. And then as you kind of actually build profitability in the periods to come, you start kind of, you know, reversing or expensing the deferred tax.

Vipul Garg: So this is more of, I would say, an accounting treatment whereby you kind of create the deferred tax asset in advance as soon as you have a line of clarity in terms of, you know, realizing, you know, these tax losses and saving on the tax outgo. And then as you kind of actually build profitability in the periods to come, you start kind of, you know, reversing or expensing the deferred tax. Okay, so Mohit, just to get to you clearly, this is accounting; she is not actually taxed, and you know, maybe a couple of years down the line, there will be an actual tax paid, right?

Speaker Change: Mohit Kabra, Vipul Garg

Mohit Kabra: Okay, so Mohit, just to get you clearly, this is accounting; she is not actually taxed, and you know, maybe a couple of years down the line, there will be an actual tax paid, right? Absolutely, absolutely. Got it.

Speaker Change: Mohit Kabra, Vipul Garg

Mohit Kabra: Second question, you know, I mean, clearly you guys gave a break up in terms of how much did the international contribute in terms of hotel as well as air. Wanted to understand a bit more on the margin side. Are the margins on international air and hotels similar to that what we see domestically? If not, you know, are they higher or lower?

Speaker Change: [inaudible]

Speaker Change: Second question, clearly you guys gave a break up in terms of how much does the international contribute in terms of hotel as well as air.

Sachin Shrikant Salgaonkar: Absolutely, absolutely. Got it. Second question, you know, clearly you guys gave a break up in terms of how much the international contributes in terms of hotel as well as air. Wanted to understand a bit more on the margin side. Are the margins on international air and hotels similar to that what we see domestically? If not, you know, are they higher or lower?

Speaker Change: Wanted to understand a bit more on the margin side. Are the margins on international air and hotels similar to that what we see domestically? If not, are they higher or lower?

Mohit Kabra: It's been largely similar, you know, more so in air ticketing. And when it comes to hotels, I think the only small difference that comes in is, like Rajesh has also called out, when it comes to international hotels, the entire inventory doesn't kind of come on a contracted basis or directly contracted basis. And we also work with a set of, you know, affiliate partners, particularly for the long tail of hotels. So that is where there is some amount of margin dilution. Otherwise, the margins are largely similar across domestic and international segments.

Mohit Kabra: We remain largely similar, you know, more so in air ticketing, and when it comes to hotels, I think the only small difference that comes in is, like Rajesh has also called out, when it comes to international hotels, the entire inventory doesn't kind of come on a contracted basis or directly contracted basis. And we also work with a set of, you know, affiliate partners, you know, particularly for the long tail of hotels.

Speaker Change: It remains largely similar, you know, more so in air ticketing, and when it comes to hotels, I think the only small difference that comes in is, like Rajesh has also called out, when it comes to international hotels,

Speaker Change: Mohit Kabra, Vipul Garg

Speaker Change: set of affiliate partners, particularly for the long tail of hotels. So that is where there is some amount of margin dilution. Otherwise, the margins are largely similar across domestic and international segments.

Mohit Kabra: So that is where, you know, there is some amount of margin dilution. Otherwise, the margins are largely similar across domestic and international. Rajesh did mention in his opening remarks that demand was intact because of the elections, people didn't travel, but I just wanted to double check on that point and understand, are we seeing any signs of slowdown anywhere in the travel industry or across air and travel? We see robust trends going on? Yeah, let me take that, Sachin.

Sachin Shrikant Salgaonkar: Got it. And last question, Rajesh did mention in his opening remarks that, you know, obviously, demand was intact because of the elections; people didn't travel. But just want to double-click on that point and understand, are we seeing any signs of slowdown anywhere in the travel or across air and travel? We see robust trends going [inaudible]

Speaker Change: Got it. And last question, you know, Rajesh did mention in his opening remarks that, you know, obviously, our demand was intact because of elections, people didn't travel. But just want to double check on that point and understand, are we seeing any signs of slowdown anywhere in the travel or across air and travel, we see robust trends going

Mohit Kabra: And maybe just to make one additional comment on the previous response that Mohit shared on the international hotels that are contracting. You know, while structurally we obviously have directly contracted hotels and partner hotels, but in terms of the business mix, about 65-70% is actually with the directly contracted hotels. So, to that extent, we continue to keep getting the benefit of the higher margin. Just thought it was relevant for a piece of additional information for you.

Rajesh Magow: Yeah, let me take that Sachin and maybe just make one additional comment to the previous response that Mohit shared on the international hotels that are contracting. You know, while structurally we have obviously directly contracted hotels and partner hotels, but in terms of the business mix, about 65-70% is actually with the directly contracted hotels. So, to that extent, we continue to keep getting the benefit of the higher margin. Just thought it was relevant for a piece of additional information for you.

Speaker Change: Yeah, let me take that Sachin and maybe just make one additional comment to the previous response that Mohit shared on the international hotels that are contracting.

Speaker Change: You know while structurally we have obviously directly contracted hotels and partner hotels.

Speaker Change: But in terms of the business,

Speaker Change: of Mix.

Speaker Change: Mohit Kabra, Vipul Garg

Rajesh Magow: Now, coming to the demand side, you know, like I mentioned, if you look at the domestic flight numbers flown on a flown basis, you know, about mid-single-digit growth, and we definitely have grown higher. And in my mind, whatever we saw in the month of April was temporary. Thanks to general elections, maybe, you know, in some parts of the country, it was also the climate, you know, temperatures really going beyond 50 and all. And, you know, some segments of travel got impacted because of that. But we also did see May and June nicely recovering as well.

Speaker Change: I just thought it was relevant to...

Speaker Change: piece of information additionally for you.

Rajesh Magow: Now, coming to the demand side, you know, like I mentioned, if you look at the domestic flight numbers on a flown basis, you know, about mid-single-digit growth, and we definitely have grown higher. And in my mind, whatever we saw in the month of April was temporary, thanks to general elections. Maybe, you know, in some parts of the country, it was also the climate, you know, temperatures really going beyond 50 and all

Speaker Change: Now, coming to the...

Speaker Change: You know, like I mentioned, if you look at the domestic flight numbers,

Speaker Change: flown on a flown basis, you know about mid single digit growth.

Speaker Change: and we definitely have grown higher.

Speaker Change: And to my mind, whatever we saw in the month of April was temporary.

Speaker Change: Thanks to general elections, maybe, you know, in some parts of the country, it was also the climate, you know, temperature really going beyond 50 and all. And, you know, some segments of the travel got impacted because of that. But we also did see May and June nicely recovering as well.

Rajesh Magow: And, you know, some segments of the travel got impacted because of that, but we also did see May and June nicely recovering as well. So, I would say on an overall basis, what is sort of reflecting in our numbers as well, although the industry growth was relatively muted on an overall quarter basis, but if you look at standalone May and June, we didn't really see any, you know, sort of concerning signs of, you know, demand slowing down.

Rajesh Magow: So, I would say on an overall basis, what is sort of reflecting in our numbers as well, although the industry growth was relatively muted on an overall quarter basis, but if you look at standalone May and June, we didn't really see any, you know, sort of concerning signs of, you know, demand slowing down. We'll see how it goes in this quarter, but I wouldn't say there is anything, at least from the reported quarter, that we saw on an overall basis with just, you know, short-term disruption in the month of April; everything else was normal. One more question on your point earlier, Rajesh. You are expecting an air recovery.

Speaker Change: So, I would say on an overall basis, you know, what is sort of reflecting on our numbers as well.

Speaker Change: Mohit Kabra, Vipul Garg

Rajesh Magow: We'll see how it goes in this quarter, but I wouldn't say there is anything, at least from the reported quarter, that we saw on an overall basis with just, you know, short-term disruption in the month of April; everything else was normal.

Speaker Change: We'll see how it goes in this quarter, but I wouldn't say there is anything, at least from the reported quarter that we saw, on an overall basis with just short-term disruption in the month of April , everything else was normal.

Sachin Shrikant Salgaonkar: One more question to your point earlier, Rajesh. You are expecting an air recovery. Is this more like a 5-6 month thing, or might it be well beyond 6 months also before we see full recovery in the air?

Sachin Shrikant Salgaonkar: Is this more like a 5-6 month thing, or might it be well beyond 6 months also where we see full recovery in the air? I would say more like six months and beyond. I think we should just take the second half. That's what we generally directionally said, you know, and there will be some improvement as we see the sort of delivery schedule of all the airlines and more and more planes will start coming in. But I think the meaningful impact will, I think we should budget for at least six months. Thank you and all the best.

Speaker Change: One more question to your point earlier Rajesh, you are expecting an air recovery, is this more like a 5-6 month thing or it might be well beyond 6 months also where we see full recovery in the air?

Rajesh Magow: I would say more like six months and beyond. I think we should just take the second half, which is what we've said generally. You know, and there will be some improvement as we see the sort of delivery schedule of all the airlines and more and more planes will start coming in. But I think the meaningful impact will be, I think we should budget for at least six.

Speaker Change: I would say more like six months and beyond. I think we should just take second half is what generally directionally we've said, you know, and there will be some improvement as we see the sort of delivery schedule of all the airlines and more and more planes will start coming in.

Sachin Shrikant Salgaonkar: Thank you and all the best. Thank you.

Speaker Change: Thank you.

Vipul Garg: Thanks, Sachin. The next question is from the line of Aditya Suresh of Makwari. Aditya, you may please ask your question now.

Vipul Garg: Thank you. Thanks, Sachin. The next question is from the line of Aditya Suresh of Macquarie. Aditya, you may please ask your question now. Thanks, Vipul. Congratulations, the Rajesh team.

Speaker Change: Thank you and all the best. Thank you.

Speaker Change: Thanks Sachin. The next question is from the line of Aditya Suresh of Macquarie. Aditya, you may please ask your question now.

Aditya Suresh: Two questions. First of all, just the hotels and business, and I think Rajesh, you briefly touched on this as well, but your commission rates have gone up in this quarter. Can you speak about what's happening here?

Aditya Suresh: Thanks, Vipul. Congratulations, Rajesh's team.

Aditya Suresh: Two questions. So firstly, just the hotels business, I think, Rajesh, you briefly touched on this as well, but your commission rates have gone up in this quarter. Can you speak about what's happening here? I do appreciate that with the more premium supplies kind of being onboarded, perhaps the take rates here are lower, but can you help us put in perspective what happened this quarter on take rates, specific to hotels?

Aditya Suresh: Thanks, Vipul. Congratulations, Rajesh's team. Two questions. So firstly, just the hotels business, I think, Rajesh, you briefly touched on this as well, but

Aditya Suresh: Your commission rates have gone up in this quarter, can you speak about what's happening here? I do appreciate that.

Rajesh Magow: I do appreciate that with the more premium supplies kind of being onboarded, perhaps the take rates here are lower, but can you help us put in perspective what happened this quarter with take rates? Specific to hotels. You know, if you ask me, it's actually not a necessarily a significant improvement. Of course, year on year, it is showing some improvement. But if you look quarter on quarter, it's in the ballpark.

Speaker Change: Specific to hotels.

Rajesh Magow: Yeah, thank you. Maybe I can take that very quickly as well. Aditya, thank you for firstly appreciating.

Speaker Change: This is Ayesha.

Speaker Change: You know, if you ask me, it's actually not necessarily significant improvement. Of course, year on year, it is showing some improvement.

Rajesh Magow: If you would perhaps recall our general sort of broad guidance, you know, on hotel take rate range has been between 17 to 18 percent in many cases. So I wouldn't read too much into it. You know, some part of it is within the quarter. It can be because of, you know, mix changing or, you know, some other small variables here and there. But directionally, there's no fundamental change here. And if I may add, Aditya, if you look at it, you know, while it's a small increase compared to 17.2% in the same quarter last year, you know, if you look at it on a quarter-on-quarter basis, it's like 17.5 versus 17.9.

Speaker Change: But if you see quarter on quarter, it's in the ballpark. If you would perhaps recall our

Rajesh Magow: On the hotel take rate range has been between 17% to 18% in many cases. So, I wouldn't read too much into it. You know, some part of it is within the quarter; it can be because of, you know, mix changing, or, you know, some other small variables here and there. But directionally, there's no fundamental change here. And if I may add, Aditya, if you look at it, you know, while it's a small increase compared to 17.2% in the same quarter last year, you know, if you look at it on a quarter-on-quarter basis, it's like 17.5 versus 17.9. So those small changes across quarters based on seasonality will continue to be there.

Speaker Change: General sort of broad guidance on hotel take rate range has been between 17-18% in many cases.

Speaker Change: Mohit Kabra, Vipul Garg

Speaker Change: And if I may add, Aditya, if you look at it, you know, while it's a small increase, you know, compared to 17.2% in same quarter last year,

Speaker Change: Mohit Kabra, Vipul Garg

Rajesh Magow: So those small changes across quarters based on seasonality will continue to be there. I was looking at this more from an IFRS revenue divided by gross bookings, and so I think there on that measure it looks a bit stalkerish, so I was trying to understand that, but I take your points.

Speaker Change: I was looking at this more from an IFRS revenue divided by cross bookings and so I think there on that measure it looks a bit stalker so I was trying to understand that.

Aditya Suresh: I guess Rajesh, your second question is then on ancillary services. Now, here your revenue has almost doubled, albeit on a low base. It seems like, based on your new disclosures on gross bookings, the take rate is high as well, in the kind of mid-30s range. My specific question was actually on the drop-down.

Speaker Change: I take your points. I guess, Rajesh, your second question is then on ancillary services. Now here, your revenue has almost doubled, albeit of a low base.

Speaker Change: It seems like based on your new disclosures on cross bookings, the take rate is high as well in the kind of mid-30s set abouts.

Aditya Suresh: My specific question was actually on the drop-down. So beyond revenue, what is the cost of fulfilling this revenue? What I'm trying to understand is, of this $21 million which you're reporting as revenue and other ancillary, is the drop-down close to being full to your profit line? Thank you.

Mohit Kabra: So beyond revenue, what is the cost of fulfilling this revenue? What I'm trying to understand is of this $21 million which you're reporting as revenue and author and ancillary, is the drop-down, Aditya Chandrasekar, Vipul Garg, Aditya Chandrasekar, Manish Adukia, Vijit Jain, Aditya Chandrasekar, Can I just drill on that a bit, Mohit, is there a significant amount of, whether it be fixed costs which are being added to grow these businesses was I guess the question, I mean when I look at your headcount in itself, that's not grown too much, so what I'm trying to understand is within your existing platform, these are.., terms of overall, you know, headcount increases or personal expenses, we'll continue to see good operating leverage coming through on a year on year basis, despite all of these.

Speaker Change: Mohit Kabra, Vipul Garg

Mohit Kabra: Maybe I will take that Aditya, and you know the other segment actually represents a host of travel and travel-related services that we offer and includes, say, for instance, insurance services or forest-related services, advertising revenues, etc. And apart from that, it also includes certain other transport services, such as the cab services that we offer or the rail ticketing that we do, and therefore, beginning this fiscal year, we have also started reporting the gross bookings coming in from our other transport services.

Speaker Change: Close to being full to your profit line. Thank you.

Speaker Change: May be I will take that Aditya and you know the other segment actually represents a host of travel and travel related services that we offer and includes say for instance insurance services or forest related services, advertising revenues.

Speaker Change: etc. And apart from that it also includes

Speaker Change: Mohit Kabra, Vipul Garg

Mohit Kabra: That is, you know, the cab services that we offer and the rail ticketing services that we offer so that you can get some more color in terms of you know what the gross booking from those businesses is, which is where the revenue is kind of, you know, included in the other segment. It will be difficult to give a drop down to the bottom line on this one, but like I said, it is a mix of some of these services which have a low operating cost and then there are some others, including transport services like cabs and rail tickets where you would have, you know, effectively net margins similar to, you know, other lines of transport.

Speaker Change: Mohit Kabra, Vipul Garg

Speaker Change: in the other segment. It will be difficult to give a drop down to the bottom line on this one, but like I said it's a mix of

Speaker Change: Mohit Kabra, Vipul Garg

Mohit Kabra: Can I just drill on that a bit more? Was the question, "Is there a significant amount of fixed costs which are being added to grow these businesses?". I mean, when I look at your headcount, in itself, that's not grown too much. So what I'm trying to understand is within your existing platform, what are those?

Speaker Change: Can I just drill on that a bit more? Is there a significant amount of fixed costs which are being added to grow these businesses, was I guess the question. I mean, when I look at your headcount in itself, that's not grown too much.

Speaker Change: So, what I'm trying to understand is, within your existing platform, these are...

Speaker Change: Mohit Kabra, Vipul Garg

Mohit Kabra: We will continue to see good operating leverage coming through on a year-on-year basis despite all of these innovations.

Mohit Kabra: And if I may, just one last question: any impact you can quantify or speak about related to this CrowdStrike issue?

Mohit Kabra: And if I may, just one last question: was there any impact you can quantify or speak about related to this CrowdStrike issue? Nothing at our end actually. No real kind of impact coming in on our business. It was more an operating, you know, sort of disruption to operations, you know, the flights getting cancelled, and also, obviously, the customer service, you know, function was super busy on that day.

Speaker Change: And if I may, just one last question was, any impact you can quantify or speak about related to this CrowdStrike issue?

Mohit Kabra: Nothing at our end actually. No real kind of impact coming in on our business. It was more of an operating, you know, sort of disruption to operations, the flights getting cancelled, and also, obviously, the customer service function was super busy on that day. But, and, you know, and very quickly, obviously, the teams stretched and worked very closely with airline partners to, you know, control the situation as much as we could, as much and as fast as we could possibly do.

Speaker Change: Nothing at our end actually, no real kind of impact coming in on our business per se.

Speaker Change: It was more an operating, you know, sort of disruption.

Speaker Change: Mohit Kabra, Vipul Garg

Mohit Kabra: But and, you know, and very quickly, obviously, the teams stretched and worked very closely with airline partners to, you know, control the situation as much as we could, as much and as fast as we could possibly do. But outside of that, you know, the business that got disrupted, let's say the rate of bookings dropped during that disruption because of the, you know, some obvious problems with the desktops and the PCs, etc. We were not working.

Speaker Change: Mohit Kabra, Vipul Garg

Mohit Kabra: But outside of that, you know, the business that got disrupted, let's say the rate of bookings dropped during that disruption because of the obvious fact that some desktops and the PCs, etc. were not working. So people had time to, you know, sort of access the platforms, etc. But the very next day, even if it was Saturday, the volumes came back, and, you know, in fact, the deficit got made up. So, net net, there was no real impact on business.

Speaker Change: The business that got disrupted, let's say the rate of bookings dropped during that disruption because of the...

Speaker Change: Obviously, the desktops and the PCs, etc. were not working, so people had time to...

Aditya Suresh: So people had time to, you know, sort of access the platforms, etc. Thank you so much. Thanks Aditya. The next question is from the line of Manik Taneja of XS Capital. Manik, can you please ask your question now? Thank you for the opportunity. My question was with regard to customer acquisition costs; you did allude to the fact that you stepped up some of this marketing activity in the second half of the quarter, but how should we be thinking about these costs given that, after the revenge travel and the strong growth that the industry witnessed through 22 and 23, one is hearing of some slowdown in terms of travel across certain parts of the world as well as including India. Hi Manik, and maybe I can take that.

Speaker Change: Mohit Kabra, Vipul Garg

Speaker Change: But very next day, even if...

Speaker Change: Mohit Kabra, Vipul Garg

Manik Taneja: Thanks Aditya. The next question is from the line of Manik Taneja of XS Capital. Manikyam, please ask your question now.

Speaker Change: Thank you so much.

Speaker Change: Thanks Aditya. The next question is from the line of Manik Dhaneja of XS Capital. Manik, can you please ask your question now?

Mohit Kabra: Thank you for the opportunity. My question was with regard to customer acquisition costs; you did allude to the fact that you stepped up some of this marketing activity in the second half of the quarter, but how should we be thinking about these costs given that, after the revenge travel and the strong growth that the industry witnessed through 22 and 23, one is hearing of some slowdown in terms of travel across certain parts of the world as well as including India.

Manik Dhaneja: I thank you for the opportunity.

Manik Dhaneja: My question was with regards to customer acquisition cost, you did allude to the fact that

Manik Dhaneja: You stepped up some of this marketing activity in the second half of the quarter. But how should we be thinking about these costs given that

Speaker Change: After the revenge travel and the strong growth that the industry witnessed through 22 and 23, one is hearing of some slowdown in terms of travel across certain parts of the world as well as including India.

Manik Taneja: You know, we generally have a bit of variation when it comes to customer acquisition costs across, you know, quarters based on seasonality, which is what I had called out. And in this particular quarter, and with almost every passing year, we are gradually increasing the spend on the brand marketing side. As you can imagine, you know, when it was through the COVID period, it obviously didn't make much sense to kind of, you know, spend on brand campaigns, but we've been kind of, you know, bringing back brand campaigns increasingly over the last couple years and still kind of, you know, maintaining the overall customer action costs well within the 5% levels that we had called out. So I think we believe we'll continue to remain in this range Sure.

Mohit Kabra: Hi Manik, and maybe I can take that. You know, we generally have a bit of variation when it comes to customer acquisition costs across quarters based on seasonality, which is what I had called out. And in this particular quarter, and with almost every passing year, we are gradually increasing the spend on the brand marketing side. As you can imagine, when it was through the COVID period, obviously, it didn't make much sense to spend on a brand campaign.

Speaker Change: Hi Manik, maybe I can take that. You know, we generally have...

Speaker Change: A bit of variation when it comes to

Speaker Change: Krishnamurti Shrinkar Sarkar

Speaker Change: Mohit Kabra, Vipul Garg

Mohit Kabra: But we've been kind of bringing back brand campaigns increasingly over the last couple of years and still kind of maintaining the overall customer acquisition costs well within the 5% levels that we had called out. So I think we believe we'll continue to remain in this range of close to between 4.5% to 5% when it comes to customer acquisition costs.

Mohit Kabra: Mohit Kabra, Vipul Garg

Speaker Change: Mohit Kabra, Vipul Garg

Mohit Kabra: Sure. The second question was with regard to our MyBiz or the assisted travel business. If you could throw in while you made some comments around that and the corporate business achieving almost 200 million dollars of GTV in the current quarter, if you could help us understand both the corporate travel and the travel agent GTV separately and probably give us some sense of the air in the hotel mix or the air and non-air mix over there and possibly some sense of the profitability on that piece.

Mohit Kabra: The second question was with regard to our MyBiz or assisted travel business. If you could throw, while you made some comments around that and the corporate business achieving almost $200 million in GTV in the current quarter, if you could help us understand both the corporate travel and the travel agent GTV separately and probably give us some sense of the air in the hotel mix or the air and non-air mix over there and possibly some sense of the profitability on that piece. So when it comes to reporting revenue as well as margins, we do it by the segment, not necessarily by the channel of distribution. However, we keep sharing additional color as it might be kind of relevant.

Speaker Change: Sure. The second question was with regards to our MyBiz.

Speaker Change: Mohit Kabra, Vipul Garg

Speaker Change: You made some comments around that and the corporate business achieving almost $200 million of GTV in the current quarter. If you could help us understand...

Speaker Change: [inaudible]

Mohit Kabra: So when it comes to reporting revenue as well as margins, we do it by the segment, not necessarily by the channel of distribution. However, we keep sharing additional color as it might be kind of relevant.

Speaker Change: Mohit Kabra, Vipul Garg

Mohit Kabra: And therefore, on one of the channels of distribution, which is on the corporate side, if you recall, we had called out that we have been making investments in terms of adding more and more platforms to kind of target the non-B2C segment, some kind of channels like MyBusiness and Quest2Travel, which were more kind of targeting the corporate customers, as well as other channels like MyPartner or MyAffiliate for an indirect kind of targeting of When it comes to the corporate business, the overall gross bookings from this business have now crossed a certain milestone.

Mohit Kabra: And therefore, on one of the channels of distribution, which is on the corporate side, if you recall, we had called out that we have been making investments in terms of adding more and more platforms to kind of target the non-B2C segment, some kind of channels like MyBiz and Quest2Travel, which were more kind of targeting the corporate customers, as well as other channels like MyPartner or MyAffiliate for an indirect kind of When it comes to the corporate business, the overall gross bookings from this business have now crossed a certain milestone.

Speaker Change: And therefore, on one of the...

Speaker Change: Channels of, you know, kind of...

Speaker Change: Mohit Kabra, Vipul Garg

Speaker Change: Kind of targeting non-B2C segment, you know, some kind of channels like MyPage and Quest2Travel, which were more...

Speaker Change: [inaudible]

Speaker Change: Mohit Kabra, Vipul Garg

Mohit Kabra: And therefore, we wanted to kind of call it out so that people have an appreciation of the scaling of some of these channels over the years. So it's more in that regard. The reporting still continues to be by the line of segment per se. Sure. Thank you and all the best, Mohit.

Mohit Kabra: And therefore, we wanted to kind of call out that people have an appreciation of the scaling of some of these channels over the years. So it's more in that regard, but the reporting still continues to be by the line of segment per se.

Speaker Change: Mohit Kabra, Vipul Garg

Mohit Kabra: Sure. Thank you and all the best, Mohit.

Vipul Garg: Thank you. Thank you, Manik. Thank you, Manik. The next question is from the line of Gaurav Rateria of Morgan Stanley. Gaurav, you may please ask your question now. Many congratulations on a good set of numbers. My first question: I just wanted to get a sense of the comparative activity on the ground.

Vipul Garg: Thank you.

Gaurav Rateria: Thanks Manik. The next question is from the line of Gaurav Rateria of Morgenstern. Gaurav, you may please ask your question now.

Speaker Change: Thank you and all the best, Mohit.

Rajesh Magow: Many congratulations on a good set of numbers. My first question is, I just wanted to get a sense of the competitive activity on the ground. Has there been any change, if at all, especially in segments like air and hotels?

Speaker Change: Many congratulations on a good set of numbers. My first question, I just wanted to get a sense of the comparative activity on the ground. Has there been any change, if at all, especially in segments like air and hotels?

Gaurav Rateria: Has there been any change, if at all, especially in segments like air and hotels? Gaurav, thanks for asking this question. Actually, there is nothing unusual.

Rajesh Magow: In this quarter, there is no real change. It continues to be the same, as we have spoken about in the past as well. So, segment by segment, there will be a different set of competition that we will have in the market. But if our own performance for this quarter is any indication, we will give you a sense that we have been gaining share pretty much across the board in all segments.

Speaker Change: Whatever. No, thanks.

Speaker Change: Thank you for asking this question. Actually, there is nothing unusual.

Gaurav Rateria: There is no real change. It continues to be the same, as we have spoken about in the past as well. So, segment by segment, there will be a different set of competition that we will have in the market. But if our own performance for this quarter is any indication, we will give you a sense that we have been gaining share pretty much across the board in all segments. Our growth rate is one higher than the industry growth rate.

Speaker Change: Mohit Kabra, Vipul Garg

Rajesh Magow: Our growth rate is one higher than the industry growth rate, and we do have some other surrogate data points to believe that we have been gaining share in pretty much every business segment that we run. So, I would say it would be fair to say that we have been effectively competing in the market and continue to gain share.

Speaker Change: And we do have some other surrogate data points to sort of believe that we've been gaining share.

Gaurav Rateria: And we do have some other surrogate data points to believe that we have been gaining share in pretty much every business segment that we run. So, I would say it would be fair to say that we have been sort of effectively competing in the market and continue to sort of gain share.

Speaker Change: Mohit Kabra, Vipul Garg

Mohit Kabra: Got it. Second question with respect to margins. You know, it's a good start to the year with nice margin expansion, both on a sequential and a yy basis. How should we think about FY25? Is this something that becomes a base and remains consistent, or will there be incremental levers as and when the volume for the industry as a whole recovers as per your expectations in the second half?

Mohit Kabra: Second question with respect to margins. You know, it's a good start to the year with nice margin expansion, both on a sequential and a y-y basis. How should we think about FY25? Is this something that becomes a base and remains consistent, or there will be incremental levers as and when the volume for the industry as a whole recovers as per your expectations? Gaurav, maybe I can take that. And, you know, as you know, The margins, particularly in the seasonally stronger leisure quarters like Q1 and Q3, tend to be better in our business. And therefore, I would say we do expect margins in the for the full year also to largely remain. Closer to this number,

Speaker Change #100: Got it. Second question with respect to margins, you know, it's a good start to the year with nice margin expansion both on a sequential and a y-y basis.

Speaker Change #101: How should we think about FY25? Is this something that becomes a base and remains consistent or there would be incremental levers as and when the volume for the industry as a whole recovers as per your expectations in second half?

Gaurav Rateria: Gaurav, maybe I can take that, and you know, as you know, The margins, particularly in the seasonally stronger leisure quarters like Q1 and Q3, tend to be better in our business. And therefore, I would say we do expect this kind of margin for the full year also to largely remain. Closer to this number. So I would not say whether it would remain at about, you know, 1.6% or, you know, thereabouts, but largely, you know, around this, although, like I said, there could be small differences coming in based on seasonality, but largely also in line with our, you know, continued effort to kind of gradually take the margins to say about 1.8 to 2% in the longer term, you know, say And so I think as part of that, we continue to kind of, you know, try and drive operating leverage and build a small margin improvement on a year-on-year basis.

Garg: Gaurav, maybe I didn't take that and you know, as you know...

Speaker Change #103: Mohit Kabra, Vipul Garg

Gaurav Rateria: So I would not say whether it would remain at about, you know, 1.6% or, you know, thereabouts, but largely, you know, around this, although, like I said, there could be small differences coming in based on seasonality, but this is largely also in line with our, you know, continued effort to kind of gradually take the margins to, say, about 1.8 to 2% in the longer term, you know, say over the And so I think as part of that, we continue to kind of, you know, try and drive operating leverage and build a small margin improvement on a year-on-year basis. Last question, you know, just a bookkeeping one.

Speaker Change #104: for the full year also to largely remain, you know.

Speaker Change #105: Mohit Kabra, Vipul Garg

Speaker Change #106: Mohit Kabra, Vipul Garg

Mohit Kabra: Last question, just a bookkeeping one, if you could share the data point that you always share around your market share on the domestic side and whether we have a similar number for the international outbound segment also? Thank you. So we do not have an international outbound segment exactly because the market share is not there.

Mohit Kabra: If you could share the data point that you always share around your market share on the domestic side, and do we have a similar number for the exact same number on the exactly because that's not kind of you know reported in that manner on the outbound side, but yeah, on the domestic side, we continue to kind of retain 30 percent plus market share. In fact, called out while the industry has grown at about four percent plus, we've actually grown about five percent plus in domestic air. Thank you very much.

Gaurav Rateria: So we do not have an international outbound exactly because that's not kind of, you know, reported in that manner on the outbound side. But yeah, on domestic, we continue to kind of, you know, retain 30% plus market share. In fact, Rajesh had called out that while the industry has grown at about 4% plus, we've actually grown about 5% plus.

Speaker Change #107: Do we have a similar number for the international outbound segment also? Thank you.

Speaker Change #110: So we do not have an international outbound exactly because that's not kind of you know

Speaker Change #112: are reported in that manner on the...

Speaker Change #107: Mohit Kabra, Vipul Garg

Speaker Change #107: in domestic air.

Gaurav Rateria: Thanks, Gaurav. The next question is from the line of Vijit Jain of Citi. Vijit, you may please ask your question now. Just focusing on the hotels business, if I look at the hotel businesses, five different pieces, say premium, budget, alternative, B2B, and international, would you please give us a sense of what the growth was like, which of these subsegments grew ahead of the overall number? And in general, I would imagine that the alternative and the budget segment would have a much higher take rate versus the other ways. So just wanted to get a sense of how those pieces are playing out. Vijit, maybe I can take that.

Vipul Garg: Thanks, Gaurav. The next question is from the line of Vijit Jain of Citi. Vijit, you may please ask your question now.

Speaker Change #109: Thank you very much.

Speaker Change #108: Thanks, Gaurav. The next question is from the line of Vijit Jain of Citi. Vijit, you may please ask your question now.

Vijit Jain: Just focusing on the hotels business, if I look at the hotel businesses, five different pieces, say premium, budget, alternative, B2B, and international. Would you please give us a sense of what the growth was like, which of these subsegments grew ahead of the overall number? And in general, I would imagine that the alternative and the budget segment would have a much higher take rate versus the other ways. So just wanted to get a sense of how those pieces are playing out. Thank you.

Vijit Jain: Thanks Sukul and congratulations guys on a great start of the summer. Just, you know, focusing on the hotels, business...

Vijit Jain: If I look at hotel businesses, 5 different pieces, say premium, budget, alternative, B2B and international, would you please give us a sense of what the growth was like, which of these subsegments

Speaker Change #111: Mohit Kabra, Vipul Garg

Mohit Kabra: Vijit, maybe I can take that while there was no significant change in terms of mix by price points, we did kind of, you know, give color in terms of, you know, the overall growth as well as the growth kind of being stronger coming in from the international hotel segment. So international hotels, like we had called out, grew much faster compared to, say, domestic hotels because the base is also smaller, and we're kind of adding a lot more supply over there. That's probably the best color.

Vijit Jain: While there was no significant change in terms of mix by price points, we did kind of share color in terms of the overall growth as well as the growth kind of being stronger coming in from the international hotel segment. So international hotels, as we had called out in a group, are growing much faster compared to say domestic because the base is also smaller and we're kind of adding a lot more supply over there. That's probably the best color.

Speaker Change #116: Vijit, maybe I can take that while there is no...

Speaker Change #113: We did kind of, you know, share color in terms of…

Speaker Change #117: International Hotel Segments or International Hotels.

Speaker Change #115: Mohit Kabra, Vipul Garg

Mohit Kabra: So the international business on the HNP side, hotels and packages, grew at about 88%, while the overall growth in the segment, you know, including both domestic and international, came in at about 29.6%. And, you know, within that, maybe just one additional comment, Vijit. Within the segments, I mean, you know, if your reference is to the past commentary, specifically the budget segment and all, now there is no segment which is not necessarily in the growth mode.

Mohit Kabra: So the international business on the HNP side, hotels and packages, grew at about 88 percent, while the overall growth in the segment, you know, including both domestic and international, came in at about 29.6 percent. And, you know, within that, maybe just one additional comment, Vijit. Within the segments, I mean, you know, if your reference is to the past commentary, specifically the budget segment and all, now there is no segment which is not necessarily in the growth mode.

Speaker Change #118: That's probably the best color. So, the international business on H&P side, hotels and packages grew at about 88 percent, while the overall growth in the segment, you know, including both domestic and international, came in at about 29.6 percent.

Speaker Change #119: Mohit Kabra, Vipul Garg Mohit Kabra, Vipul Garg

Mohit Kabra: You know, that I think of the past, all segments within, you know, the small, midget, medium, premium, super premium, multico, of course, all of them are sort of growing now in the right direction. Of course, there will be base effects. Some will grow higher, and some will grow at a relatively lower growth rate.

Mohit Kabra: You know, that of the past, all segments within, you know, the small, midget, medium, premium, super premium, multico, of course, all of them are sort of growing now. Of course, there will be base effects. Some will grow higher, and some will grow at a relatively lower growth rate. But overall, all segments are growing now.

Speaker Change #119: That is the past. All segments within the small, midget, medium, premium.

Speaker Change #120: Superpremium, Multeco, of course all of them are sort of growing now directionally. Of course there will be base effects, some will grow higher and some will grow at a relatively lower growth rate but overall all segments are growing now.

Mohit Kabra: But overall, all segments are growing now. One follow-up on that one. In general, the take-rate across the various segments, my understanding would be, in general, premium hotels would be closer to the international benchmark, which is maybe mid-team. The budget segment has traditionally been higher, but you highlighted it's closer to 20.

Speaker Change #121: One follow-up on that one. In general, the take rate across the various segments, my understanding would be, in general, premium hotels could be closer to the international benchmark, which is maybe mid-teens.

Speaker Change #122: Mohit Kabra, Vipul Garg

Vijit Jain: And my second question, I may just ask that right away. You know, looking at your employee costs overall, they're up maybe 12-15%. Why, why now? Bookings in a pretty tough macro environment are up 20%. So, it does look like operating revenue is playing out nicely here.

Speaker Change #123: If you can just...

Speaker Change #124: Give a broad sense on that, that would be helpful.

Speaker Change #125: And my second question, I may just ask that right away, you know, looking at your employee costs overall, it's up maybe 12-13%, why, why now? Bookings in a pretty tough,

Vijit Jain: So, for alternate and for B2B, what is the broad range of take-rate that you get? Bookings in a pretty tough macro environment are up 20%. So, it does look like operating leverage is playing out nicely here. So, just trying to understand, are you basically being a bit cautious on the overall EBIT margin segment? Vijit, I can probably take both.

Speaker Change #126: Mohit Kabra, Vipul Garg

Mohit Kabra: Vijit, I can probably take both. I think when it comes to personal expenses, I think, like we've been calling out, we do believe that our personal expenses will continue to show operating leverage like in, say, the last few years. And therefore, that is something that we've kind of continued with even in this particular year. The only area where we've seen slightly more investment being made is in terms of, you know, longer-term brand marketing expenses during the quarter. Sorry, on your previous one, could you just repeat the question on the take rates on the B2B and the alternative foundation side? Sure.

Mohit Kabra: I think when it comes to personal expenses, I think, like we have been calling out, we do believe that our personal expenses will continue to show operating leverage like they have in the last few years. And therefore, that is something that we have kind of continued with even in this particular year. The only area where we have seen slightly more investment being made is in terms of longer-term brand marketing expenses during the quarter.

Speaker Change #127: Vijit, I can probably take both. I think when it comes to personal expenses, I think like we have been calling out, we do believe in our personal expenses, we will continue to show operating leverage.

Speaker Change #127: like in the last few years.

Speaker Change #128: And therefore, that is something that we've kind of continued with, you know, even in this particular year.

Mohit Kabra: Sorry, on your previous one, could you just repeat the question on the... The take rates on the B2B and the alternative accommodation side. Sure. I've already covered it in one of the earlier questions, that the take rates are kind of largely similar between, say, international and domestic, because that was also a part of your question.

Speaker Change #129: Mohit Kabra, Vipul Garg

Speaker Change #130: Sorry, on your previous one, could you just repeat the question on the B2B and the alternative accommodation side? Sure, I have already covered it in one of the earlier questions.

Mohit Kabra: I've already covered it in one of the earlier questions that the take rates are kind of largely similar between, say, international and domestic because that was also part of your question. But because some part of the international goes to about 25, 30 percent comes in on an affiliate basis, and there we see some dilution. But as far as we know, that might be more the B2B part from a supply side, would be more stand-alone properties and would find it difficult to kind of, you know, market themselves and, therefore, directly, and would therefore kind of, you know, use platforms like us a lot more effectively, and therefore we'll be able to kind of, you know, give slightly better margins.

Speaker Change #131: Mohit Kabra, Vipul Garg

Vijit Jain: The fact that some part of the international inventory goes to about 25-30% comes in on an affiliate basis, and there we see some dilution. But as far as we know, that might be more the B2B part from a supply side, would be more standalone properties and would find it difficult to kind of, you know, market themselves and, therefore, directly, and would therefore kind of, you know, use platforms like us a lot more effectively and, therefore, will be able to kind of, you know, give a slightly better margin. Thanks a lot. Those were my questions,

Speaker Change #132: Mohit Kabra, Vipul Garg

Speaker Change #133: Mohit Kabra, Vipul Garg

Vijit Jain: Thanks, those were my questions. Thank you so much. Thank you.

Vipul Garg: Thanks, Vijit. The next question is from the line of Aditya Chandrasekar of UBS. Aditya, you may please ask your question now.

Vipul Garg: Thank you so much. Thank you. Thanks, Vijit. The next question is from the line of Aditya Chandrasekar of UBS. Aditya, you may please ask your question now: is there some downside risk there in terms of some of the deliveries getting delayed maybe to the next year, which in turn causes some demand constraints this year? Just wanted to get your sense on what you're hearing from the airlines and how we should think about that potential risk.

Speaker Change #134: Thanks a lot. Those were my questions. Thank you so much. Thank you.

Speaker Change #134: Thanks, Vijit. The next question is from the line of Aditya Chandrasekar of UBS. Aditya, you may please ask your question now.

Aditya Chandrasekar: Yeah, hi

Aditya Chandrasekar: Congrats on the good thread of numbers. Just a couple of questions from my side. On the recovery that we kind of expect in the second half as the airline deliveries start coming in or the aircraft deliveries start coming in, do you see some risk there because

Speaker Change #136: I think Airbus has also kind of flagged some difficulties in meeting its production guidance and Boeing also. I mean, we all know it's facing its own set of difficulties. Do you think there's some downside risk there in terms of some of the deliveries getting

Aditya Chandrasekar: Some downside risk there in terms of some of the deliveries getting delayed maybe to the next year, which in turn causes some demand constraints this year? Just wanted to get your sense on what you're hearing from the airlines and how we should think about that potential risk.

Rajesh Magow: You know, Aditya, basically what we hear right now as things stand today, the estimate is that things will start improving, and that's the reason, you know, as I was talking about earlier in response to the earlier question as well, for taking on a margin of more six months rather than three months kind of a time frame. From six months hence, from today, we might start to see some, you know, sort of material improvement happening.

Aditya Chandrasekar: You know, Aditya, basically what we hear right now as things stand today, the estimate is that things will start improving. And that's the reason, you know, as I was talking about earlier in response to the earlier question as well, for taking on a margin of more six months rather than three months kind of a time frame. From six months hence, from today, we might start to see some, you know, sort of material improvement happening.

Speaker Change #137: You know, Aditya, based on what we hear right now, as things stand today,

Aditya: You know, the estimate is that things will start improving and that's the reason, you know, as I was talking about earlier in response to the earlier question as well.

Speaker Change #139: Mohit Kabra, Vipul Garg

Rajesh Magow: Now, the downside risk, if we really have to hazard a guess, you know, can only be the timing. You know, so it could be a quarter. I don't think it will be faster. It can only be a quarter later, right?

Aditya Chandrasekar: Now, the downside risk, if we really have to hazard a guess, you know, can only be the timing. You know, so it could be a quarter. I don't think it will be faster. It can only be a quarter later.

Rajesh Magow: Right. So that is the only potential downside risk. But, you know, it needs to be viewed slightly differently, to be honest, because, you know, if the outlook, which is what is being projected today on the demand side, if it continues in the same way, you know, it follows the same trajectory. And let's say there is a supply constraint on the domestic flights market. You know, there are other alternative options, other modes of transport, and they are growing very nicely.

Rajesh Magow: So that is the only potential downside risk. But, you know, it needs to be viewed slightly differently, to be honest, because, you know, if the outlook, which is what is being projected today on the demand side, if it continues the same way, you know, it follows the same trajectory, and let's say if there is supply constraint on the domestic flights market, you know, there are today other alternative options, other modes of transport, and they are growing very nicely, and there would be a share shift.

Speaker Change #140: Mohit Kabra, Vipul Garg

Speaker Change #141: Mohit Kabra, Vipul Garg

Rajesh Magow: And there would be a share shift. In the past, we also saw, you know, if the prices were high, and then the share shift moved to, you know, the high-quality trains or the intercity private sector, private buses, air-conditioned and so on, depending upon the route, you know, that you look at. So I don't think the momentum on, you know, sort of the demand side will slow down just because of the supply side constraint, if at all that happens or does not improve in the domestic air market, you know, because there are other alternative modes of transport and equally good at times, you know, where people fall back on. So I think that it will sort of at least partially get mitigated if that happens.

Rajesh Magow: In the past, also, we have seen, you know, if the prices were high, and then the share shift moved to, you know, the high-quality trains or the intercity private sector, private buses, air-conditioned, and so on, depending upon the route that you look at. So I don't think the momentum on, you know, sort of the demand side will slow down just because of the supply side constraint if anything happens or does not improve in the domestic air market, you know, because there are other alternative modes of transport and are equally good at times, you know, where people fall back on.

Speaker Change #142: Mohit Kabra, Vipul Garg

Speaker Change #143: So, I don't think the momentum...

Speaker Change #143: Mohit Kabra, Vipul Garg

Rajesh Magow: But, you know, I guess we'll have to watch this space in terms of the deliveries coming on time, you know, and how far they come and, you know, how far they sort of start helping the supply side. But, you know, the current estimates are just based on our conversation and that it should start improving in around six months, eight months, or even with a quarter's lag. Your hotel business continues to grow at a healthy level. Your costs are pretty much stable. However, marketing expenses are within that 5% range.

Rajesh Magow: So I think that at least partially, it will sort of get mitigated if that happens. But, you know, I guess we'll have to watch this space in terms of the deliveries coming on time, you know, and how far they come and, you know, how far they sort of start helping the supply side.

Speaker Change #144: So, I think that at least partially will get mitigated if that happens, but I guess we'll have to watch this space.

Speaker Change #145: In terms of the deliveries coming on time, you know, and how fast they come and, you know, how far they sort of start making the, start helping the supply side, but, you know, the current estimates are just based on our conversations.

Speaker Change #146: is that it should be around the six months that it should start improving.

Speaker Change #148: Got it. That makes sense.

Speaker Change #147: The second question I have is on the margins.

Speaker Change #149: So you've said that, you know, probably this year will remain at this 1.6 odd number and probably head towards the 1.8 to 2% range in the next three to four years.

Speaker Change #150: Just wanted to understand, so if your airline recovery happens as expected say within six to eight months or even with a quarter's lag, your hotel business continues to grow at a healthy level.

Rajesh Magow: continues to grow at a healthy level, your costs are pretty much stable, marketing expenses are within that 5% range, and there is a lot of operating leverage flowing through. If all of these numbers kind of pan out as expected, we should be hitting that 1.8 to 2% range much earlier. Kind of leverage start slowing down going ahead or how we should look at it because it just seems that 1.8 to 2% three to four years out seems a bit conservative from your end in terms of guidance.

Aditya Chandrasekar: And there is a lot of operating leverage flowing through, right? If all of these numbers kind of pan out as expected, we should be hitting that 1.8 to 2% range much earlier, right? Just wanted to understand if we need to kind of factor in some kind of leverage start slowing down going ahead or how we should look at it because it just seems that 1.8 to 2% three to four years out seems a bit conservative from your end in terms of guidance.

Speaker Change #151: and there is a lot of operating leverage flowing through right. If all of these numbers kind of pan out as expected we should be hitting that 1.8 to 2 percent range much earlier right. Just wanted to understand if we need to kind of factor in

Speaker Change #151: [inaudible]

Aditya Chandrasekar: Hi Aditya, maybe I can take that and you know, I think there would be variables like the one that you just called out, the question before this, in terms of how quickly the domestic air industry kind of comes back or bounces back to good growth. And also, I'm sure we'll have an opportunity to kind of keep sharing more color on the estimates going forward at almost every quarterly on a quarterly basis. So if there's anything more to add, I'm sure we'll keep sharing more color with every passing quarter.

Aditya Chandrasekar: Hi Aditya, maybe I can take that and you know there will be variables like the one that you just called out the question before this in terms of you know how quickly the domestic air industry kind of comes back or bounces back to good growth, and also, I'm sure we'll have an opportunity to kind of keep sharing more color on the estimates going forward at almost every quarterly on a quarterly basis so if there's anything more to add, I'm Thanks a lot.

Speaker Change #153: Hi Aditya, maybe I can take that and you know I think there would be variables like you know the one that you just called out the question before this in terms of you know how quickly the domestic air industry kind of you know comes back or bounces back to good growth and also I'm sure we'll have you know an opportunity to kind of

Speaker Change #152: Mohit Kabra, Vipul Garg

Aditya Chandrasekar: Sure, that makes sense. Thanks a lot.

Aditya Chandrasekar: Thanks Aditya. The next question is from the line of Prashant Kothari of PICTE. Prashant, you may please ask your question now. Air travel has definitely grown much. [inaudible] I think the overall kind of pricing within the international segments or, say, for instance, within the domestic segments hasn't really seen any significant change. I think what's happened is the overall price increases that used to happen in the past used to be probably slightly stronger.

Prashant Kothari: Thanks Aditya. The next question is from the line of Prashant Kothari of PICTE. Prashant, you may please ask your question now.

Speaker Change #155: Sure, that makes sense. Thanks a lot.

Speaker Change #162: Thanks Aditya. The next question is from the line of Prashant Kothari of PICTE. Prashant, you may please ask your question now.

Aditya Chandrasekar: This quarter we haven't really seen a very significant increase in terms of ASPs per se, but otherwise, there is no real change in the average ASP, I would say by domestic or by international segment. And I think, Prashant, this will, you know, the point that you're sort of looking at, while at the ASP level, there will be, there's no real significant change, but this will, the mix will change, or, you know, the higher growth on the international front will reflect more in gross bookings numbers for the air, you know, as a whole.

Speaker Change #154: Hi, thanks for the opportunity. Just one small question, you mentioned that the international air travel has definitely grown much.

Mohit Kabra: Air travel has definitely grown much. When I look at the average transaction size that has grown by like 4% year-over-year, can you just explain that? I would have thought that the exchange of international money should kind of help the transaction size grow much bigger, or was there any kind of dip in overall ticket prices which led to this outcome?

Speaker Change #156: Better for us, it was a mistake.

Prashant Kothari: When I look at the average transaction size, that is going up by only like 4% year over year. Can you just explain that? I would have thought that the next change of international should kind of help the transaction size grow much bigger or was there any kind of a dip in?

Speaker Change #157: overall ticket prices which led to this outcome.

Mohit Kabra: I think the overall kind of pricing within the international segments or, say, for instance, within the domestic segments hasn't really seen any significant change. I think what's happened is the overall price increases that used to happen in the past were probably slightly stronger.

Speaker Change #159: No, I think the, you know, the overall kind of, you know, pricing, say, within the international segments or, say, for instance, within the domestic segments, hasn't really seen any significant change.

Speaker Change #160: What's happened is...

Speaker Change #161: Mohit Kabra, Vipul Garg

Mohit Kabra: This quarter we haven't really seen a very significant increase in terms of ASPs per se. But otherwise, there is no real change in the average ASP, I would say, by domestic or by international segment. And I think, Prashant, this will, you know, the point that you're sort of looking at, while at the ASP level, there will be, there's no real significant change, but this will, the mix will change, or, you know, the higher growth on the international front will reflect more in gross bookings numbers for the air, you know, as a whole.

Speaker Change #163: This quarter we haven't really seen very significant increase in terms of ASPs per se.

Speaker Change #164: Mohit Kabra, Vipul Garg

Speaker Change #164: And I think, Prashanth, this will, you know, the point that you are sort of looking at,

Speaker Change #165: Mohit Kabra, Vipul Garg

Mohit Kabra: If you look at the total gross booking number versus the segment growth, you will see, you know, so the growth, which is driven by mixed change, is, you know, sort of reflecting that increase.

Aditya Chandrasekar: If you look at the total gross booking number versus the segment growth, you will see, you know, so the growth, which is driven by mixed change, is, you know, sort of reflecting that increase.

Speaker Change #165: Mohit Kabra, Vipul Garg

Prashant Kothari: Okay, thanks. And one of the questions that we frequently ask you, Vipul, any update on the India Listing Fund?

Vipul Garg: And one of the questions that is frequently asked, Vipul, any update on the India listing fund? I think there's nothing more to add over there. Like we said, you know, we're not really kind of looking at raising any funds right now, and therefore not looking at any capital market activity, per se.

Speaker Change #167: Okay, thanks. And one of the questions that we frequently ask, Vipul, any update on the India Listing Fund?

Vipul Garg: I think there's nothing more to add. Like we said, you know, we're not really looking to raise any funds right now and, therefore, not looking at any capital market activity per se.

Speaker Change #168: I think there's nothing more to add over there. Like we said, you know, we're not really kind of looking at raising any funds right now and therefore not looking at any capital market activity per se, but should there be a, you know, kind of

Unnamed: But should there be a, you know, kind of a thought of you not doing so? I'm sure we'll share color in the quarters to come.

Vipul Garg: But should there be a... I thought of doing so. I'm sure we'll share color in the quarters to come.

Speaker Change #169: I thought of doing so, I am sure we will share color in the quarters to come.

Prashant Kothari: All right, perfect. Thank you very much.

Unnamed: All right. Thank you much.

Vipul Garg: Thank you, Prashant. At this time, we have no further questions. Any last questions any attendee wants to ask? Otherwise, we can end the call. Rajesh, we have no further questions. Over to you for your closing remarks.

Unnamed: At this time, we have no further questions. Any last questions? Any attendee wants to ask. Otherwise, we can end the call.

Speaker Change #170: All right, perfect. Thank you much.

Speaker Change #171: Thank you, Prashant. At this time we have no further questions. Any last questions any attendee wants to ask, otherwise we can end the call.

Rajesh Magow: So, Rajesh, we have no further questions. Over to you for your closing remarks. Thank you, Vipul, and thank you, everyone. Thank you for all. You know, asking all the right side of questions. They were all relevant, and thank you for your patience.

Speaker Change #171: So Rajesh, we have no further questions. Over to you for your closing remarks.

Rajesh Magow: Thank you, Vipul, and thank you, everyone. Thank you for asking all the right questions. They were all relevant, and thank you for your patience. Look forward to seeing you next quarter.

Rajesh Magow: Thank you, Vipul, and thank you, everyone. Thank you for all, you know, asking all the right set of questions. They were all relevant. And thank you for your patience. Look forward to see you next quarter.

Rajesh Magow: Look forward to see you next quarter. Thank you, everyone.

Vipul Garg: Thanks everyone. Thank you everyone. You may please disconnect the call. Thank you.

Unnamed: You may please disconnect the call. Thank you. Goodbye.

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