Q4 2025 MakeMyTrip Ltd Earnings Call
Good evening everyone.
My name is simple, we just reading for the everybody to join them and we'll talk in a minute.
Speaker Change: Hello, everyone and little guys Senior Vice President Investor Relations at make microclimate.
Speaker Change: Our fiscal 2025 fourth quarter and full year earnings webinar.
Speaker Change: Will be hosted by the company's leadership team comprising Blogish model, a cofounder and co Chief Executive Officer, and Mohit <unk>, Our group Chief Financial Officer. As a reminder, this live event is being recorded by the company and will be made available for replay on our IR website. Shortly after the conclusion of today's event.
Speaker Change: At the end of these prepared remarks, we will also be hosting a Q&A session.
Speaker Change: Certain statements made during today's event, maybe considered forward looking statements within the meaning of safe Harbor provision of the U S. Private Securities Litigation Reform Act of 90 95. These statements are not guarantees of future performance are subject to inherent uncertainties and actual results may differ materially any forward looking.
Speaker Change: Information really during this event speaks only as of this date and the company undertakes no obligation to update the information to reflect changed circumstances.
Information concerning 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 SEC on July 15 2024.
Speaker Change: Copies of these filings are available from SEC or from the company's Investor Relations.
Speaker Change: Department I would like to know kind of what the quality largish foothills remarks, what do you <unk>.
Speaker Change: Thank you.
Speaker Change: And welcome everyone to our fourth quarter and full year call for fiscal 2025.
Speaker Change: Fiscal 2025 has been a milestone year for us in more ways than one.
Speaker Change: Not only delivered record performance, but we also celebrated our 20 <unk> anniversary.
Speaker Change: As we Mark the 25th anniversary of our company <unk> is.
Speaker Change: With a deep sense of pride and gratitude.
Speaker Change: This milestone as more than Amazon offline. It reflects the dedication innovation and resilience that have defined our journey.
Speaker Change: Five years ago, we began with a simple mission, all making travelers accessible convenient and transparent putting gains.
Speaker Change: Since then we have grown into a one stop shop that continues to evolve and push boundaries.
Speaker Change: I would like to take this opportunity to offer huge good attitude toward long standing industry and non industry partners for their support over this action packed journey.
Speaker Change: Coming to the year and quarter key highlights happy to share that we delivered a record performance during fiscal year 2025.
Speaker Change: The robust growth rate, we recorded a gross booking value of $9 $8 billion, whether you all with a year on year growth vehicle at 25, 9% in constant currency terms.
Speaker Change: Alongside strong gross booking value growth, we continued to drive operating leverage and as a result, the adjusted operating profit, which is at an all time high of $167 $3 million as of yesterday year on year growth of 34, 7%.
Speaker Change: For Q4, but also booking value growth accelerated to 34% year on year all in constant currency terms on the back of strong travel demand.
Speaker Change: Hey, Mike and Nick just to an operating profit for Q4 grew where to go 337, 9% year on year.
Speaker Change: At a high growth here it is come from the new users as well as from the existing customers. During the year, we added more than 9 million customers, taking though.
Speaker Change: <unk> branded good user base to 82 million now.
Speaker Change: Lot of the new users have come from tier two and tier three towns signifying a brand's penetration into deeper India.
Speaker Change: Ah repeat rate in a quarter continues to be very healthy at 70% plus.
Speaker Change: Right.
Speaker Change: On a journey a journey.
Speaker Change: Excited to share that minor dot AI, our trip planning chatbot has evolved into a powerful and create an <unk> book capable what guests, creating seamless interactions across others.
Speaker Change: Specifically ability AA boards for Dod products like flights hotels ground transport and destination discovery.
Speaker Change: With this <unk> is now a unified interface, where users can plan their trip, taking the hill offer intelligent and personalized prompts.
Well as it has all persons queries or duo amendments to the bookings et cetera.
This is part of our long term commitment to make discovery and booking simpler smarter and more enjoyable for our users using journey II.
Speaker Change: With the increasing number of users adopting this new interface our.
Speaker Change: <unk> will continue to evolve and become more intelligent and intuitive.
Speaker Change: In parallel we have rolled out several generally do AI powered features across key business lines. These include the view somebody will foster more informed decision, making ginnie isos that understands in response to natural language strict queries smart collections that cute air travel options based on user teams and preferences.
Speaker Change: Assist Morgan flights to answer common questions about baggage cancellations and refunds.
Speaker Change: Driven support for booking changes such as date modifications and other possible inquiries together data advancements reflect our continued investment in Nextgen AI.
Speaker Change: Lady experiences.
Speaker Change: That will enhance every step of what after travel journey.
Speaker Change: Sites as part of executing our connected trip strategy being.
Speaker Change: Introduced multiple integrated touch points across that App desktop and.
Speaker Change: <unk> set to drive seamless end to end planning for that particular trip.
Speaker Change: Underpenetrated International long bond market was also identified as a growth opportunity for us this fiscal year, we've been strengthening our products are positioned to better serve the needs of this market and we saw the designs of those coming to life.
Speaker Change: Fiscal year 'twenty five odd internationally air ticketing revenue grew by over 33% year on year, all auto pacing industry growth. Similarly, our international revenue grew by over 65% year on year, making this one off.
Fastest growing business segments.
Speaker Change: Our international business now contribute 25% of the overall revenue up from 22% during fiscal year 2004.
Speaker Change: Let me now turn to the business segments, starting with our air ticketing business wildly erlanger trying to navigate the near near term supply challenges, particularly in the domestic air market. The good news is that domestic departures crossed up the pandemic. Louis this complete a deal.
While supply growth in the domestic market continues to be slower than expected at about nine 5% year on year, All international departures grew by 18, 5% year on year and.
Speaker Change: And the online penetration in international Air ticketing is increasing steadily as well.
Speaker Change: Which helped our gross booking value of their business grew by 24, 3% year on year in constant currency terms in Q4 fiscal year 'twenty play.
Speaker Change: And our endeavor to keep involving customers improving customer experience to be revamped my trip section to enhance the post sales experience, enabling customers to easily discover and adopt digital solutions like cancellations and changes without the need to call cause market since its launch customer interactions with sales, though my trips options.
We have increased meaningfully and cost to customers appear to have reduced considerably.
Speaker Change: International travelers.
Speaker Change: What's the initiative of offering by sites got some customized travel insurance plans during international flight booking to offer greater value and choice to customize.
Speaker Change: Our recommendation business, which includes hotel home stays in packages continues to witness strong growth in the fiscal year concluded on a strong note with positive momentum in the sense of optimism for the future with us booking value of the hotels and packages business grew by 27, 7% that you had on your all in constant currency terms for Q4.
Speaker Change: Fiscal year 'twenty five.
Speaker Change: The last two quarters also delivered record performance with most of the hotel chains, reflecting robust demand as a result, it is strong commentary around new signings across the hospitality industry. Most major players signaled an acceleration and development activity, particularly in tier two three and four cities.
Speaker Change: Notably global hotel chains.
Speaker Change: Also deepening their India focus by partnering with local operators to accelerate market penetration in the last five years. Both 42 1000, plus rooms have been added by the genes that 60% of them in tier two cities and beyond.
Speaker Change: We continued to strengthen our supply mode.
Now for 8000, 9000, plus accommodation options in 2000, plus cities across the country. We aim to further accelerate the supply aggregation in future.
Using loss with because we added over 120000 rooms to our supply with tier two cities and beyond witnessing 30% plus year on year growth.
Speaker Change: As mentioned earlier, our international Hotel segment continues to grow much faster than the market on the back of enhanced product proposition, we scaled our ratings footprint to over 600000, plus international properties building Greater Trust Anythings motto travel decisions, we have further enhanced our content to better resonate with Indian cuts.
Speaker Change: Thereby increasing the newness quotient and making hotel bookings more convenient and relevant to the Indian preferences are.
Speaker Change: Our homestay business continues to scale, we sold over 33000, plus unique properties across 1100, plus unique destinations during the year.
Speaker Change: With strong growth across business and leisure and pilgrimage destinations.
Speaker Change: <unk> ramped up our homestay supply during last fiscal by adding over 42000, plus rooms translating to agree with a 33% year on year.
Speaker Change: Spiritual tourism is emerging as a significant growth driver within India's domestic travel landscape.
We saw a strong demand from both first time and repeat travelers seeking culturally rich and spiritually meaningful experiences pilgrimage cities volume growth. This fiscal was over 95% year on year, which included windfall gains from 144 years Mega <unk>, leading 204.
Speaker Change: Two 7% year on year growth in Q4.
Speaker Change: Our focused planning and strong execution around the MOFCOM delivered an upside in January and February we stood out as the only player with accommodation and when key during the peak periods, particularly on the alternative accommodation side.
Speaker Change: And it turned off things, which would fully bookable online.
Speaker Change: Driving both visibility and conversion we intend to continue building on this trend by expanding our offerings in key pilgrimage circuits, enhancing accessibility and creating curated travel experiences that cater to this fast growing segment.
Speaker Change: Our holiday packages business continues to deliver robust performance driven by growth in destinations like Thailand, Singapore and Maldives during the quarter relaunch does standalone tours and attractions funnel one more additional brought us to follow.
Speaker Change: Vision of being a one stop shop for our NIM traveler.
Speaker Change: With this new offering travelers can now seamlessly discover and book experiences across 1100, plus international cities spread across 139 countries covering an extensive catalog of 215000, plus tours and attractions, including sightseeing tours tickets and passes performances and chose boom and bust.
Speaker Change: Tours day trips unique local experience and much more.
Speaker Change: And our bus business growth has further improved in Q4 on the back of strong demand.
Speaker Change: Increasing supply and one time tail winds up.
Speaker Change: Tom.
Speaker Change: Our growth continues to be broad based with all regions growing in double digits with Norton installed outpacing south and west in Q4 <unk>.
Speaker Change: The supply in the private bus operator segment has grown approximately 15% year on year, reflecting a buoyant operating environment.
Speaker Change: Operators remain the main optimistic with increased interest in opening new routes, which bode well for future growth during the quarter, we launched connecting bus services, allowing bus operators to connect to their existing services, leading to an improvement in occupancy. This also increases to address whether users, especially in logging longer distance routes.
Speaker Change: Turning to interface. They can book dual buses with a reasonable layover timing between.
Speaker Change: International bus business also continues to grow that in all the countries with a growing contribution to the overall pie.
Speaker Change: For a real business, we continue to bring in new users to the platform besides growth in ancillary revenues.
Speaker Change: Primarily from seat guaranteed product, who don't trains ecosystem is expanding rapidly with IAC Tc reporting a 200% increase in orders over the past two fiscal years.
Speaker Change: We have tested the market through a partnership with <unk>, which has delivered.
Speaker Change: Promising withheld econ conversion rate and a 99% plus fulfillment rate, we're looking to enhance the offering in future.
Speaker Change: For our gas business, we continue to scale both airport transfers intercity cabs.
<unk> station cab off things with value added services like route selection and local sites and aligning with our strategy to bridge offline and online games.
Speaker Change: It's introduced express pickup, but airport to city caps on new program that tracks flights arrival time and ensures that guy who is already upon that I was our corporate travel business via both our platforms that is my best and quest for travel is witnessing strong growth as well.
Speaker Change: Active corporate customer count on my visit novel was 64000, plus compared to 56600 customers during the same quarter last year.
Speaker Change: And for Q2 D. The active customer count has reached 507 large corporate compared to 357 customers in the same quarter last year.
Speaker Change: As we look ahead, we remain focused on scaling our recently launched products, while targeting higher than industry growth rates across all other.
Speaker Change: Other key business segments.
Speaker Change: Next generation customer experience will be driven by Jenny I led innovation and supported by deep.
Speaker Change: Kayla will supply seamlessly integrated to our robust technology platforms before I conclude I wanted to briefly address the recent developments we are there.
Speaker Change: Good start to the season in a grid, but post the unfortunate incident at Paragon, our popular summer tourist destination and subsequent escalation between India and Pakistan.
Speaker Change: Dinner travel disruption, leading to a noticeable difference bookings, particularly in the northern region of India. This negative sentiment impacted bookings for a couple of weeks affecting both leisure and corporate travelers.
Speaker Change: At this time, our endeavor has been to closely collaborate with our airline and hotel partners to offer a cancellation and rebooking options for our customers with a ceasefire now in place and the situation stabilizing we are optimistic about recovering some of the lost momentum in the weeks ahead, we continue to monitor the broader geopolitical.
Speaker Change: And macroeconomic landscape to respond with agility, but emerging situations.
Speaker Change: With this let me now hand over the call to Mohit for the financial highlights of the quarter.
Speaker Change: Thanks.
Speaker Change: Everyone.
Speaker Change: We are pleased to report another strong quarter and full year performance with good topline and bottom line growth.
Speaker Change: During this period.
Speaker Change: We reported our fiscal year 'twenty fight, we've delivered our best ever financial performance across key metrics.
Speaker Change: I think the strength of our brand and tapping into the healthy tenant demand across the country. So both domestic and international travel.
Speaker Change: Keeping a thing at any one off situations, which have already been covered but our dish. The NIM travel industry continues to experience robust growth driven by the strength of the Indian economy, rising consumer confidence and increased discretionary spending on travel or experiential services.
Speaker Change: Before I move on to the quarterly results in detail, let me share some highlights for the full fiscal year.
Speaker Change: During fiscal year 'twenty five.
Revenues.
Speaker Change: <unk> grew by 27, 4% year on year in constant currency.
Speaker Change: <unk> hundred $78 million.
Speaker Change: $2 million in fiscal year 'twenty full alive.
Speaker Change: Last year's profit of $216 7 million included a onetime effort at all.
Speaker Change: $1 million from recognition of deferred tax assets and a one time gain of $36 million.
Speaker Change: Due to the change in carrying value now.
Speaker Change: Entering 2020.
Speaker Change: During the first production in February people exclude.
Speaker Change: Excluding these one time gains.
For fiscal year, 'twenty, four was about $60 million and the profit for fiscal year 'twenty five.
At about $95 3 million.
Speaker Change: Adjusted operating profit registered a strong growth of 24% year on year and reached $67 3 million.
Speaker Change: In the current fiscal year compared to $24 2 million in the previous fiscal year.
Speaker Change: And the highlight of the year was the growth in our international business across blades and accommodation.
Speaker Change: International Air ticketing business continues to grow faster than the market gaining market share volume in the segment grew by 31% compared to the last one year, taking international share in.
Speaker Change: In air ticketing revenues, 36% in this fiscal year compared to 24% in the previous fiscal.
Speaker Change: We have also been increasing directly contracted international accommodation options.
Speaker Change: Clearly in destinations bad debt in flight connectivity has been established as it has been at.
Volumes in this segment has grown more than 45% year on year and the mix of international and wholesale revenues has reached 91, 9% compared to 17.
Speaker Change: 17, 7% in the previous fiscal year.
Speaker Change: We continue to remain focused on operating cost efficiencies as a result of it just to an operating profit margin for fiscal year 'twenty five has improved to one 7% of gross bookings compared to $1 five 6% in the previous is good.
Speaker Change: Let me I'll share some more details on accordingly.
Speaker Change: Revenue for.
Speaker Change: It's deal by 25, 6% year on year in constant currency to $245 5 million.
Speaker Change: Compared to $202 9 million in the same quarter last year.
Speaker Change: Profit during the same quarter last year as you said, probably just explained runoff pertaining to deferred taxes.
Speaker Change: It was about $15 2 million and the current reported quarter profit stands at $29 2 million.
Speaker Change: Adjusted operating profit they started a growth of 37, 9% year on year.
Speaker Change: $244 7 million compared to $32 4 million in the same quarter last year.
Speaker Change: Moving on to our segment results.
Speaker Change: A ticketing adjusted margin stood at $94 $2 million with a string of year on year growth of 16, 8% year on year in constant currency.
Speaker Change: Great for the business were in line at six 2%.
Speaker Change: In the domestic market, we continue to maintain 30% plus share of the flight ticketing market.
Speaker Change: During the quarter the mix of international Air Ticketing business revenue reached a high of 39% compared to 36 months out, but I think in the same quarter last year.
Speaker Change: In our hotels and packages segment.
Speaker Change: Margin growth.
Speaker Change: It stood at 28, 4% year on year in constant currency, resulting in adjusted margin of $9 6 million.
Speaker Change: During the quarter.
Speaker Change: For the quarter, but in line at 18% in this segment.
Speaker Change: And the bus ticketing business the existing margin stood at $36 5 million and I think a strong year on year growth of over 44, 3% in constant currency terms the growth Ms business as well as the improvement in take rate for the quarter was aided by the one time demand up there from hongkong as already called out bad at dish.
Speaker Change: We ended the quarter and the full year with cash and cash equivalents of about zero point satisfy a billion dollars.
Speaker Change: Our capital allocation strategy remains focused on three core priorities, firstly, continuing to invest in growth initiatives across our platform.
Speaker Change: Secondly, selectively exploring niche and are getting opportunities that can strengthen our market position, our hedge strategy capabilities and lastly, returning value to shareholders through our buyback program.
Speaker Change: These two share as we continue to make progress across our organic initiatives by investing in AI development of the <unk> business expansion into new markets, like Indonesia, and setting up operations in Vietnam and Cambodia.
Speaker Change: As part of our inorganic initiatives.
Speaker Change: During the year, we announced the acquisition of IP access management platform from Craig, we strengthen our copper business proposition.
Speaker Change: <unk> also deployed about $21 $7 million in share repurchases, our buyback program during the quarter.
Speaker Change: 233703.
Speaker Change: The shares were repurchased an aggregate amount of 25 $121.5 million at an average price of $92 per share.
Speaker Change: As we celebrate the 25 year milestone.
Speaker Change: The biggest opportunity.
All of the stakeholders, including our customers Great partners Associates, and our investors who have supported us throughout the journey during the past five years. The business has seen major macro disruption from the dot com bust two sides to 911 are the more of the same COVID-19 pandemic, but thanks to the support of our stakeholders.
Speaker Change: We have not only navigate through these tough times, but always a much stronger as a business with that I'd like to turn the call back to open for Q&A.
Speaker Change: Thanks, Mohit any participants who wish to ask the question I ask any questions can click on the raise hand option and deepen take questions one by one.
Speaker Change: First question is from the line of such as sell down of.
Speaker Change: Bank of America.
Speaker Change: Ask your question now.
Speaker Change: Thanks Congrats.
Speaker Change: Spanish bank target a tick off my most I have three questions.
Yes.
Speaker Change: First question is on your selling and marketing expense clearly we've seen them in the range of four 5% to 5% for the longest time.
Speaker Change: But with every area scale is improving so I'm in Peru at higher scale. How is management thinking in terms of you know looking to spend is there a thought process to sort of perhaps keep the amount in absolute amounts MLR, but as a percentage of <unk> continued to reduce our to continue to spend even hired as compared to previous years.
Speaker Change: Despite competition being low.
Speaker Change: Sure. So I think maybe I can take that and like we have been calling out in the past I think be the continued strategy is to kind of keep them on a percentage basis around the 5% level.
Speaker Change: Our results for the same one apart from the oil business segment that we reported which is a ticketing hotels and bus like they've called out we're being interesting and ill, let Ralph you know ancillary travel services that we've been putting on the platform.
Speaker Change: Many of these catheter devine be investment mode. Similarly, they're kind of investing behind initiatives in terms of geographic expansion that I called out and also in terms of you know.
Speaker Change: Our investments in the alternative accommodation space.
This is also beating visits as we could have seen that we are probably among the only few ones having accommodation options during demand com.
Speaker Change: Event earlier this year, so I think.
Speaker Change: We believe that the overall.
Speaker Change: Marketing and promotional expenses currently at the kind of 5% level just below the 5% level, a pretty efficient and our focus will be more to drive.
Speaker Change: Better kind of mix in the business and drive faster growth than the industry.
Speaker Change: And then look at kind of indicating the percentage of spend assets on the on the marketing side.
Speaker Change: Got it Mike, particularly at our debt.
Speaker Change: Second question generally ended up growth trade for the industry and for <unk> clearly the last few years, there has been a strong growth.
Speaker Change: Driven by consumer demand basis, you'll commence when gets a sense that consumer sentiment towards travel is unchanged and we do have certain temporary near term issues, but we all.
Speaker Change: So I haven't had time issue, which continues to persist turned back drop of all effect, how should we ideally look at the industry growth rate.
Speaker Change: And.
Speaker Change: And any thoughts in terms of you know how good one think about to make my script growth rate for maybe next year or couple of years from now.
Speaker Change: So very broadly.
Speaker Change: Legacy Universe focus has been to drive growth in between PS.
Speaker Change: And that remains.
Speaker Change:
Most important strategic priority in terms of clinical trial, much faster than industry growth rate and get them.
Speaker Change: While it is difficult in many of the companies that put out a growth.
Speaker Change: Growth guidance, but we believe we'll continue to kind of you know Luka.
Speaker Change: Similar growth basically at least in the next few years, because we don't see any reason why growth should start slowing down.
Speaker Change: For all the reasons that you called out in and I have been calling RMB in the script as well so similar kind of growth is increased volume target.
Speaker Change: Let's see we do have some impact.
Speaker Change: From the one offs are the kind of macro related situations that we've seen.
Speaker Change: Recently.
Speaker Change: But we do believe these are temporary one maybe there could be a blip in a quarter or two but other bodies I think we've kind of continued to be choosing the similar kind of a protracted.
Speaker Change: Got it and last question is on <unk> and clearly the center of the journey is evolving in a very rapid manner.
Speaker Change: And I know that I'll, just touch base on agent take framework as well.
Speaker Change: Now that his beliefs seat new today.
Speaker Change: In terms of competition for you guys because there are multiple other agent <unk>, which sort of you know come in maybe.
Speaker Change: Difficult to give a timeframe could be six months could be maybe one to two years and how is management looking at the risk of a new today.
Speaker Change: And hope.
Speaker Change: Strategically I should start out, particularly from our agent D var in travel perspective.
Speaker Change: Yes, maybe I can take that study and it's a good question obviously.
Speaker Change: Because <unk> is not only the buzz word now.
Speaker Change: It's happening right it's weird.
Speaker Change: So firstly.
Speaker Change: As you know I think it will be fair to say and which is what I was just trying to tesoro cover in the commentary as well.
Speaker Change: It's not a center, we've been actually focusing on.
Speaker Change: All <unk> related development for the last several quarters.
Speaker Change: And we will continue to keep doing it. So my view on this is that while there will be.
Speaker Change: More developments happening in the market there might be some new oh sort of players in the market that might emerge over time.
Speaker Change: But to my view on this is that data.
Speaker Change: Our success in this space is going to be a function of two things one.
Speaker Change: Getting the.
Speaker Change: Making the investment in the right areas and perfecting the.
Speaker Change: The models and the way you know riding on the available Llm's, but more importantly, leveraging your own data.
Speaker Change: Again to make sure that.
Speaker Change: It is.
Speaker Change: Differentiated and better than anyone else, who could be able to produce it.
Speaker Change: And Andrew is it is going to be good.
Speaker Change: The speed and agility that is going to matter. So I think on both fronts. So we feel confident.
Speaker Change: Get on.
Speaker Change: On the data front, we have.
Speaker Change: There is data and this is all.
Speaker Change: All three brands.
Speaker Change: Together, my Triple and data.
Speaker Change: Not necessarily public Internet data.
Speaker Change: And then you have the new leverage that.
Speaker Change: And try to sort of combine it with the.
Speaker Change: The overall.
Speaker Change: Public Internet data and then come up with the product.
Speaker Change: And then combine that we're planning with the transaction together, which again.
Speaker Change: Someone who would have a better chance of doing it.
Speaker Change: It should be us.
Speaker Change: And we are on it.
Speaker Change: <unk> is going to ultimately make the difference so.
Speaker Change: Im not necessarily of course watching this space very carefully, but we are not necessarily.
Speaker Change: Again on sort of paranoid about.
Speaker Change: Somebody new who come out who might come in and be able to bring in some use case and.
Speaker Change: And then for the competition and if they come in and we love to obviously.
Speaker Change: Deal with the deal with that.
Speaker Change: It's sort of new competition accordingly.
Speaker Change: But the greater amount of focus from our point of view is to make sure that you know.
Speaker Change: The auto hit in the game and we make sure that there to be a leverage all of that what we have.
Speaker Change: And put the right resources behind it to ensure that we end up giving.
Speaker Change: Better differentiated consumer experience.
Speaker Change: Until they do it with a new user interface.
Speaker Change: Our customers.
Speaker Change: And then there's going to be by the way adoption journey as well. So this is going to be a long journey.
Speaker Change: This is more transformational, but it is definitely going to be journey.
Speaker Change: And and we stay committed and invested in this in a big way.
Speaker Change: Thanks, guys, Yeah, just a quick follow up.
Speaker Change: Guys, how ctrip has one of the key.
Speaker Change: Primary shareholders.
Speaker Change: Any learnings assistant from Ctrip from Jenny I perspective.
Speaker Change: They had a breakdown in terms of game in terms of how yeah.
Speaker Change: As you are doing in China.
Speaker Change: Well.
Speaker Change: And then on the on the orders front, perhaps yes.
Speaker Change: And you would realize that all of the Otas all the global Otas not only trip about all the global Otas and we watch them very very carefully and look at all the sort of developments happening every part of the world, especially on this brand.
Speaker Change: The old Otas are actually all consuming technologies. They are not necessarily building a sort of foundational models. If you would.
Speaker Change: And on and get on that front frankly, if we end up doing a benchmarking exercise even today and we keep doing it every now and then like fairly regularly.
Speaker Change: All of us would be.
Speaker Change: Sort of buried in there about like not necessarily IC anyone like marching or like miles ahead because.
Speaker Change: All these underneath sort of fundamental models that are available to everyone. Those partnerships are available to everyone and everyone is sort of leveraging to get all those what is available in the market and trying to sort of come out and build your own model because in the travel.
Speaker Change: Experience use case it is not necessarily a very simple use case objects picking up the bay external data and summarizing and just answer some trades with some level accuracy and get done with it and that is a very very simple use case and that is not necessarily going to cut rate cut the eyes.
Speaker Change: I think the focus everybody is trying to do is to.
Speaker Change: The the new interface with his board.
Speaker Change: Far more intuitive are more intelligent than for bad you have to do a lot of deep book.
Speaker Change: Leveraging some of these foundational models so.
Speaker Change: On benchmark front I mean, we obviously withdrawn from not only them from the others as well as we keep seeing the development very closely not only them, but you know even Google Microsoft right.
Speaker Change: Whoever is sort of coming up with the new models. We have of working with every every every single one very very closely because everyone is really.
Speaker Change: Sort of open to work with you right now because it's an evolving space, so but from a benchmark perspective.
Speaker Change: I don't think anyone is like miles ahead right now.
Thank you for the detailed explanation I'll, just and I'll, let rich.
Speaker Change: Q.
Speaker Change: Thanks Sachin. The next question is from the line of Benicia do care of Goldman Sachs Muni Schmidt. Please ask your question now.
Speaker Change: Thank you hi, good evening team. Thank you for taking my questions.
Speaker Change: My first question is on competition now and you look at that same data market.
Speaker Change: Your line in hotels that have not done as well as how they may have done it sounded more developed markets. Additionally, even within Otas.
Speaker Change: I'd, probably hasnt had the most dominant shares in India, but some idea that Oregon markets, you've seen Edson Deloitte.
Speaker Change: Two questions the Aladdin.
Speaker Change: In the RV origination team explained and second.
Speaker Change: Is this just the.
Speaker Change: Steve you'll have at least a majority that couldn't be the structure is like here, but as the market, let's say becomes more mature.
Speaker Change: We could see competition from airline direct Hotel did act maybe even model do you think just wanted to get your thoughts because we got right now nobody that benign competition around that for quite some time now one thing you don't get the I'll talk to us what in your view could really change that would be my first question. Please.
Speaker Change: Dominic.
Dominic: Firstly I would say.
Dominic: We have to look at it little bit more holistically.
Dominic: And not necessarily when we look at the desk competition from that lens.
Dominic: Not necessarily only the digital sort of competition.
Dominic: Because the market is huge manage the India market is really really who is the overall travel and tourism market is huge and the online penetration barring domestic flights are still quite underpenetrated. So therefore.
Dominic:
Dominic: Overall Holistically if you would look at it look at it that there will be competition.
Dominic: In this travel and tourism market.
Dominic: You know from all the existing traditional conventional players depending upon which segment that you talk about you go on the packaging segment you will have good operators there are regional tour operator.
Dominic: As you know sort of.
Dominic: Pan India.
Dominic: It goes to our operators did a consolidator in the market for the international players there are.
Dominic: There are traditional travel agents across the board there are global Otas on the on language local Otas on there and then like you said there are direct bookings happening, although my view on direct bookings is that.
Dominic: And I have said in the past.
Dominic: We never see our partners is competition you know because the buyer. So big it is just a question of having more sort of customer touch points from every principal standpoint for them to be able to just get the maximum sort of.
Dominic: Demand in their favor so.
Dominic: First I think it is very important to understand that yes in the in the Ot space, we can be but it would be would be the leading market player today.
Dominic: But but when I look at the overall total market I think there's a significant.
Dominic: Amount of headroom.
Dominic: For the for the different defense segment.
Dominic: Travel segment, we compete with different different place so <unk>.
Dominic: Have you seen them evolving over the period over the last 25 years that we've been in in a in a in business. The answer is yes, we look for the continued to keep evolving and we might see different nature all competition potentially maybe the answer is yes, that's what.
Dominic: I think the more important point is that how do we sort of from our point of view, how do we stay focused on executing our own strategies, how do we continue to keep evolving on our own.
Dominic: Not only our business strategy, but also execution road maps or do they stay.
Dominic: Pretty much across the board given that we have taken we are following a sort.
Dominic: Sort of a vision of a one stop shop, which means multiple products and services.
Dominic: And from an execution standpoint.
So it's not it's not easy it is challenging but it definitely represents a more to you over the period, we've been able to build our brands on the back of course, the consumer experience and some of them do is fundamentally things. Besides the consistent product and technology innovation scale up supply. We gave the example of let's say a proactive.
Dominic: John.
Dominic: Ms destination like Margo Manhattan. So there are many many things that you have to continuously and consistently do it for you to be able to stay ahead in the market and this is what our focus will be we've been able to so far able to to execute it well the track records suggest that but going forward.
Dominic: So you know people would make sure that we will continue to sort of keep stay focused people watching the world, but stay focused on what we need to do so that we stay ahead.
Dominic: On the call.
Speaker Change: Thank you that's very helpful, but would it be safe to summarize that it looks like near term perspective competition is not something you are losing sleep over it.
Dominic: That is something for you.
Speaker Change: I'm not losing sleep over the competition.
Now on even in the past because competition is competition and I think we should loosely board voted her own business strategy and execution roadmap of diagnosed for Nicky one is very focused and when he was really stretch done. Thank you nice little second question, maybe sorry.
Speaker Change: No go ahead, Yeah second question, maybe directed towards adding more head no I mean, I know you're going to see op margin guidance like medium term, 1% to 2% that already at the lower end of that guidance and of course Directionally you are improving that can happen, but in the last 12 months alone.
Speaker Change: 15, 20 basis points on that number and there is like you said in the past some operating leverage in the business. While we understand your point on you know marketing spend and youre not wanting to bring that down below maybe like five potential data about but everything else from a cost perspective should naturally derived from operating leverage and if you keep following the same type of clean 12 months, you'll probably be at the higher end of your guidance so well.
What did he stops the margin number two.
Speaker Change: The top end of guidance and maybe like a lot of weird and would you like consciously try to keep it within the 2% band and reinvest or whatever you get in growth.
Speaker Change: Is there a different way, we should think about it.
Speaker Change: I think you could even credit discipline fiscal year any of them.
Speaker Change: Slightly different by the quarter, but if you look at it from a full disclosure point of view come in at about 1.5% currently.
Speaker Change: It's still a little bit.
Speaker Change: From the lower end of the range that we've been calling out so I think the first priority will be to get into that range of 8% plus.
Speaker Change: And surely as you kind of integrate that and stabilizing even pointed 2% range I think we have enough opportunities to call out or is it kind of inappropriate therefrom.
Speaker Change: Understood.
Speaker Change: And maybe just a last question on this buyback number in the quarter you did about $21 million.
Speaker Change: Just like how should we think about and I'm glad I know you've called out like a certain number I don't know what the maximum number could be 400, infotainment and buyback but like.
Speaker Change: 20 million number like not a new base line number in terms of how much you can do minimal every quarter.
Speaker Change: Should we think about what percentage of your free cash flow you can potentially start doing buyback off any color there would be helpful.
Speaker Change: One.
Speaker Change: I should just call out that another 114 million or so of it is kind of left in the current plan.
Speaker Change: Further buyback plan isn't necessarily a constraint right now is just because we haven't still utilize the plan that was created.
Speaker Change: Like how many years back that plan as it cannot be fully exhausted and therefore, we have not added to the plan. So that isn't really a concern if you could kind of add more to the plan if you're able to.
Speaker Change: No.
Speaker Change: See more buybacks coming through what we call. Our design studies, you will continue to be.
Opportunistic buybacks so.
Speaker Change: Looking at it I think there's a lot of volatility in the market and therefore, we want to ideally be opportunistic in pain timely buybacks, so as to be able to kind of dip into such programs right now where the market is under pressure and that is what we've kind of done if we completed last quarter also drove a significant volatility in the market and.
Speaker Change: Therefore, our buyback program yielded good results.
Speaker Change: And we can do to kind of take that approach.
Speaker Change: Would be ended up kind of deploying.
Speaker Change: Higher number a lower number I think the appetite is there to deploy a much higher number but let's see how the market is kind of pan out.
Speaker Change: And we'll kind of keep taking targeted on a quarterly basis.
Speaker Change: Thank you Oliver.
Speaker Change: Thank you.
Speaker Change: Thanks Manish. The next question is from.
Speaker Change: From the line of Richard Chan of City, we get a repeat I've got my Sheila Thanks, So Paul.
Speaker Change: Congratulations to all of you on the 25th anniversary.
Speaker Change: My first question is so airbnb launched significant product upgrade yesterday.
Speaker Change: Significant expansion into expedient thing to say 19 categories tells entities and <unk> plan to children.
Speaker Change: I would like to you know.
Speaker Change: And maybe get your thoughts on experiences is a category for your business I know at some point of time in deposit. Thank you believed it was too it was a bit or at least for this in India.
Speaker Change: But any incremental thoughts on that would be it would be great to know.
Speaker Change: So all of it.
Speaker Change: No. That's a good observation and we went through that as well.
Speaker Change:
Speaker Change: Is it a quick update on our tours and experiences as it is that and we've been talking about it for the last couple of quarters, we've actually gone live.
Speaker Change: Already with that.
Speaker Change: We just need to.
Speaker Change: Sort of scale it up to the to the complete traffic exposure to the complete 100% traffic.
Speaker Change: Slowly and gradually getting wrapped up already.
Speaker Change: And I called that out on tour as part of this group and now you know there was one that are dedicated to that and the coverage and Oh, the kind of experiences that are going to be there on our platform and the number of cities et cetera. So we will have a very very wide and broad coverage as well.
Speaker Change: And in.
Speaker Change: And then this will this is now focused on.
Speaker Change: Predominantly international destinations.
Speaker Change: But we will also continue to keep ramping up even the domestic sort of.
Speaker Change: Our experience is bad.
Speaker Change: The API is would be available and.
Speaker Change: And offer that to our customers as well. So we also do believe that this is going to be an additional sort of high potential.
Speaker Change: Survey so from from this market as well given that a lot of.
Speaker Change: Growth that is happening on the international travel.
Speaker Change: Off late I mean, you all know that the recovery post Covid was led by domestic market. After that after the lag effect internationally is now growing very.
Speaker Change: Handsomely as well.
Speaker Change: And.
Speaker Change: I did oh, so this will definitely be a good.
Speaker Change: Sort of are we definitely see good potential in it but from a consumer point of view. It will also be on make Mitra.
Speaker Change: Most of it is that they will also good got.
Speaker Change: Alright. Thanks.
Speaker Change: You know building on top of that so in general looking at the kind of inorganic opportunities you might pursue.
Speaker Change: I'm wondering if you know there are two areas that I can probably think of very good probably makes sense. One is obviously in this experience this category, where I don't know if there's any anything like up to call those kinds of services similar to those kinds of services that you could probably look to acquire your thoughts on that and the second Avenue.
Speaker Change: <unk> is as you look at Jenny I, and you talked about leveraging your own data and everything.
Speaker Change: Is there anything on the travel media or travel content side, which probably makes sense for you from an acquisition point of view, so really questions around the you know whether they didn't experiences within media.
Speaker Change: You know specific areas are you interested in.
Speaker Change: No listen.
Speaker Change: As I said, we just embarked on the organic journey.
Speaker Change: We've just built a platform.
Speaker Change: We already have those services, we have the supply.
Speaker Change: <unk> on our platform already.
Speaker Change: The strategy is going to be buried.
Speaker Change: As much as possible direct supply already.
Speaker Change: And we already have Laura for traffic on our platform.
Speaker Change: So you.
Speaker Change: Frankly given.
Speaker Change: Given that we already have the traffic we are just going to add more service. We have so much of international traffic on already on our platform and our and we have already built a platform as well as a scaled up the supply. So we will be even though it's sort of go down this part on organically scale. This up.
Speaker Change: On M&A as Mohit was highlighting.
Speaker Change: Our strategy.
Speaker Change: You would have noticed from the past track record as well.
Speaker Change: And then on looking at just the niche segments and seeing if there is anything going to be.
Speaker Change: A potential.
Speaker Change: Option in the <unk>.
Speaker Change: In the ancillary segments, which could be accretive or adding any sort of product expansion capabilities like Hep papers that would example of that we will continue to be the back end.
Speaker Change: In any case, we have started our journey organically and on the on even the content side on the media or content so be it.
Speaker Change: There are plenty of sort of even the marketing side, the tools et cetera available even for our content strategy. There are many tools that are available that we had already started to leverage too.
Speaker Change: We do you know sort of digital campaigns or Florida.
Speaker Change: For our own platform content strategy that we deal with in the potentially there.
Speaker Change: Our plans around.
Speaker Change: Coming up with a rich video content reviews et cetera.
Speaker Change: Leveraging all the journey.
Speaker Change: Tools that are available so I am not sure there isn't a gain an inorganic opportunity there.
Speaker Change: Because getting a lot of it is just so accessible and available and we just need to sort of build on that so so having.
Speaker Change: Having said that we keep watching this space I mean, there's always if it is if there's an opportunity which makes sense and fold into our overall.
Speaker Change: Inorganic expansion criteria, we would be very happy as always to evaluate but.
Speaker Change: So far I think we have not really seen that as an opportunity.
Speaker Change: Got it transition and my last question any one off costs associated with the development.
Speaker Change: And you know in the last two weeks in northern Yeah that you called out.
Speaker Change: Not really not really.
Speaker Change: They can be.
Speaker Change: The last couple weeks has only gone up.
Speaker Change: A dip in the overall kind of air travel and demand and debt retirement nodal has been impacted but no nothing.
Speaker Change: And I think that you've kind of called out as a on a prescription costs correct.
Speaker Change: Alright. Thank you so unless you those are my questions.
Speaker Change: Thanks. The next question is from the line up from malignant age of excess capital. Please ask your question now.
Speaker Change: Hi, Thank you for the opportunity I hope I'm audible ale and my.
Speaker Change: And on the.
Speaker Change: Around possible operating electrical scan already answered I had a couple of questions. One is with regards to how much of the growth on the bus side in the current quarter could be driven by Athene and the recognition policy. That's question number one.
And then a couple of quick and easy questions in terms of how should we be thinking of Volta Aesop expenses less tax efficiently.
Separately from that normally would be.
Speaker Change: No bus ticketing segment is concerned the impact on the change in accounting.
Accounting treatment.
Speaker Change: Both basins with air travel is this material and they probably haven't called that out and there is no comparable in the previous year.
Speaker Change: But it's not a material one.
Speaker Change: Very small.
Speaker Change: Like ours are not a lot of it is kind of no impact came in on a contract.
Speaker Change: The bus changes you know kind of kind of growth that we saw coming in from deep mahogany antibodies ticketing, sorry towards more more exceptional I think Brady from next quarter onwards, we should hopefully see once again in a more steady state stable kind of you know.
Speaker Change: Margins over there.
Speaker Change: If you could just repeat the next two questions. Please.
Speaker Change: That will keep your question in terms of if you could help us understand hopefully we can give them a loyal guest aesop charges as well as access going forward.
Speaker Change: Uh huh.
Speaker Change:
Speaker Change: Barclays that we would likely want to keep it in the in the existing range of about $35 million to $40 million and Ano.
Speaker Change: This is the way that it has been for the last many many years and despite all of the growth of kind of improvement would be.
Speaker Change: Our kit Kat.
Speaker Change: And our philosophy, we want to kind of likely remain within this range on an absolute number basis, so that will be there.
Speaker Change: The answer to the southeast question in an effective tax rate.
Speaker Change: He said a deferred tax asset and that gives you a fairly good view on the on the on the deferred tax assets that are sitting on the books and we will continue to enjoy.
Speaker Change: It had benefit for at least another year.
And more like kind of you know get into full tax rate.
Speaker Change: Thereafter, so FY 'twenty six.
Speaker Change: Getting some benefits of the carryforward losses.
Speaker Change: It makes the numbers and we kind of largely secreting is.
Speaker Change: Pre tax bracket.
Speaker Change: Thank you all the best of the teacher.
Speaker Change: Most of them combined.
Monica: Thanks Monica. The next question is from the line of a cadre of J P. Morgan and putting me. Please ask your question now.
Speaker Change: Hey, Thank you I just wanted to take a step back and talk a bit about demand in the <unk>.
Monica: Current quarter, if the full the conflict began.
Monica: What have been the early indications of the <unk> bookings.
Monica: The economic environment has been somewhat soft on the consumption side I was wondering if you've seen any evidence of that therefore, the recent conflict.
Monica: Maybe I could bore Gordon maybe I can take that I think.
Monica: But the first month or the beginning of the quarter, most pretty normal we would see and therefore.
Monica: Nothing exceptional to call out.
Monica: Largely in line with how we've been kind of looking at the growth over the last few quarters of course.
Monica: Yeah.
Monica: The last three weeks have been.
Monica: Becker to buy what's kind of happening.
Monica: But other than that.
Monica: I think the year began on that.
Monica: Normally not.
Monica: Thank you and the impact on travel sentiment has it been almost equal onboard the international or Boeing and on the domestic side.
Monica: Pretty much yeah, yeah, absolutely, yeah, especially for both though.
Monica: The escalation of the tension that started that there has been an overall sentiment with the good news is.
Monica: We started to see recovery right. After this is slide was announced so the last two or three days. We have we are already seeing a sort of coming back.
Monica: Thank you just one more question I think you addressed a lot of a sudden you're how you're thinking about yes, I had a question just awesome differently.
Monica: One of the Differentiators for <unk> quantified Dean.
Monica: <unk>.
Monica: Accessible contact center that you have versus competition, especially wasn't international competition in that context, how are you thinking about using AI to manage costs without losing that differentiation you have and maintaining customer experience.
Monica: Good question, Karen I was covering that as part of my earlier response and better customer experience because that has been one of the very very important focus area as well.
Monica: US and like you called out perhaps differentiate it from the market as well.
Monica: And we will not dilute that by any stretch of imagination.
Monica: We're obviously leveraging the technology to do it as much as possible.
Monica: Hi.
Monica: And then our focus is without compromising the cosmetic experience. If you if you sort of either do the automation or change at all from.
Monica: From one channel you've moved to customer from one channel to the other channels.
Monica: In fact, we have the our internal goal always is to create that experience. So this journey for US now before Oh Jenny I. This is self service automated journey started much much earlier impact right. After Covid and then we look over it because.
Monica: That was one of the areas that we ended up focusing and we had resources and we.
Monica: Double down on that and our experience on our my trips self service, even without the journey I intervention.
Monica: <unk> has been very very good very well received IRB measure as he said we measure our npa's on that.
And we continue to keep improving that experience because the device is already there everybody is familiar with their device.
Monica: If we end up sort of providing the experience, which is better than our call center experience because sometimes call center experience also has to go through IV iron and the flow can be.
Monica: Literally irritating, even if at the end of the day, if you end up sort of doing with all the service level and Oh, good promise that.
Monica: Debate, we definitely end up providing a better experience on on self service as well. So we will continue to be.
Monica: Focus.
Monica: Improve the experience.
Monica: And then in the process, if we get the productivity gains that would be our strategy.
Monica: Appreciate it thank you and desktop.
Monica: Thank you.
Monica: So of course.
Monica: We're almost out of time. This was our last question over to you for your closing remarks.
Speaker Change: Well, thank you ripple and thank you everyone for your time and for all the questions.
Speaker Change: And and like we said.
Speaker Change: Yes, there was a recent development, but thankfully after the ceasefire we are seem to be on our way from consumer sentiment standpoint and hopefully.
Speaker Change: I'm looking forward to the to the normalcy soon and the normal quarter. Thank you so much.
Dr. Dish: Thank you Dr dish.
Speaker Change: Everyone. Thank you for joining you may now disconnect. Thank you.
Speaker Change: Goodbye.