EPS of $0.19 increased by 11.8% from previous year
Gross margin of 48.9%
Net income of 21.03M
""India is currently the world's sixth-largest domestic travel market by spending with a growing middle-class powering travel spending growth of roughly 9% per year." - Rajesh Magow" - Rajesh Magow
In Q1 2025, MakeMyTrip Limited reported robust financial results, achieving record quarterly gross bookings of $2.4 billion, reflecting a 21.6% year-on-year growth in constant currency. This tremendous performance was driven by strong demand in air ticketing and accommodations, despite a soft start to the quarter due to the general elections in India. The company benefitted from a strategic focus on enhancing customer loyalty through the relaunch of its MMT Black loyalty program and expanding its travel offerings. Management expressed confidence in sustained growth trajectories, particularly in the domestic and international travel markets as infrastructure investments continue to support rising passenger numbers. Overall, this quarter highlights MakeMyTrip's resilience and strategic foresight to navigate a recovering market while unlocking new growth avenues.
Key Performance Indicators
Revenue
254.52M
QoQ: 25.45% | YoY:29.37%
Gross Profit
124.56M
48.94% margin
QoQ: 24.82% | YoY:-9.17%
Operating Income
27.81M
QoQ: 68.13% | YoY:45.35%
Net Income
21.03M
QoQ: -87.77% | YoY:13.93%
EPS
0.19
QoQ: -87.66% | YoY:11.76%
Revenue Trend
Margin Analysis
Key Insights
**Revenue**: $254.5 million (+31.5% YoY, +25.5% QoQ)
**Gross Profit**: $124.56 million (Gross Margin: 48.94%)
**Net Income**: $21.03 million (+13.93% YoY, -87.77% QoQ)
**Adjusted Operating Profit**: $39.1 million (+30% YoY)
**Earnings Per Share (EPS)**: $0.19
Financial Highlights
### Revenue and Profitability
- Revenue: $254.5 million (+31.5% YoY, +25.5% QoQ)
- Gross Profit: $124.56 million (Gross Margin: 48.94%)
- Net Income: $21.03 million (+13.93% YoY, -87.77% QoQ)
- Adjusted Operating Profit: $39.1 million (+30% YoY)
- Earnings Per Share (EPS): $0.19
### Cash Flow and Balance Sheet
- Net Cash Provided by Operating Activities: $72.3 million
- Cash and Cash Equivalents: $348.84 million
- Total Assets: $1.73 billion
- Total Liabilities: $618 million
- Debt to Equity Ratio: 0.231
- Current Ratio: 2.78
Management emphasized maintaining firm cost controls while slightly increasing marketing expenditures to drive customer acquisition as the travel sector rebounds.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
254.52M
29.37%
25.45%
Gross Profit
124.56M
-9.17%
24.82%
Operating Income
27.81M
45.35%
68.13%
Net Income
21.03M
13.93%
-87.77%
EPS
0.19
11.76%
-87.66%
Key Financial Ratios
currentRatio
2.78
grossProfitMargin
48.9%
operatingProfitMargin
10.9%
netProfitMargin
8.26%
returnOnAssets
1.21%
returnOnEquity
1.9%
debtEquityRatio
0.23
operatingCashFlowPerShare
$0.65
freeCashFlowPerShare
$0.65
priceToBookRatio
8.69
priceEarningsRatio
114.65
Net Income vs. Revenue
Expense Breakdown
Management Commentary
#### Management Commentary: Market Insights
- Rajesh Magow noted, "We are pleased to share that we've 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." This emphasizes the successful execution of strategies amidst external challenges.
- On domestic travel, Magow stated, "Domestic air passenger traffic is projected to double by 2030, boosted by government initiatives to build infrastructure and connect underserved domestic airports." This provides a positive outlook regarding passenger growth, which is essential for future profitability.
- Mohit Kabra highlighted, "Our international air ticketing business posted strong year-on-year revenue growth of over 37% in constant currency," indicating a vital area of growth opportunity that can contribute significantly to overall revenue.
- Regarding customer loyalty, he stated, "We relaunched our flagship loyalty program, MMT Black, with simplified two tiers and new benefits. We have already seen improvement in the operating metrics compared to the earlier version, indicating better value for our Black customers." This strategic move aims to enhance customer retention.
"India is currently the world's sixth-largest domestic travel market by spending with a growing middle-class powering travel spending growth of roughly 9% per year." - Rajesh Magow
â Rajesh Magow
"We have a lifetime transacted user base of 75 million across all our three brands." - Rajesh Magow
â Rajesh Magow
Forward Guidance
Looking ahead, management remains optimistic about maintaining strong momentum in Q2 and beyond, primarily driven by the sustained recovery in both domestic and international travel. The focus will remain on leveraging technology, expanding the product offering, and optimizing operational efficiencies. They anticipate further improvements in the domestic air market in the second half of the financial year as airlines enhance their service capacities. The long-term expectation for gross bookings reaching higher thresholds remains positive given the upward trajectory in Indian travel patterns and infrastructure enhancements.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
MMYT Focus
48.94%
10.90%
1.90%
114.65%
TOUR
76.00%
11.40%
1.33%
12.84%
MOND
64.10%
-14.60%
-82.40%
-2.29%
AMADF
44.70%
28.20%
6.94%
21.73%
TNL
32.20%
20.00%
-7.13%
12.96%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
The outlook for MakeMyTrip remains positive based on strong execution of business strategies, demonstrated growth in key segments, and a favorable macroeconomic backdrop for travel. Given the anticipated recovery in travel demand and active management of operational efficiencies, investors may expect continued revenue growth and margin improvements. The robust cash position further enables strategic investments for long-term value creation.
Key Investment Factors
Growth Potential
MakeMyTrip is positioned for significant long-term growth driven by increased domestic travel demand and expanding international travel opportunities, particularly in markets such as Southeast Asia and the Middle East.
Profitability Risk
Risks include potential disruptions from macroeconomic factors, labor shortages in the travel industry, and fluctuating fuel prices impacting operational costs.
Financial Position
With a strong cash position of $348.84 million and a solid debt-to-equity ratio of 0.231, MakeMyTrip has a strong financial foundation to support its future growth initiatives.
SWOT Analysis
Strengths
Leading market position in the Indian online travel sector
Strong brand recognition and customer loyalty programs
Diverse product offerings, including international travel options
Weaknesses
Dependence on domestic travel market trends
Limited international presence compared to larger global competitors
Opportunities
Growth potential in the burgeoning Indian middle class
Expansion of digital channels and technology-driven user experiences
Rising demand for leisure and business travel as the economy recovers
Threats
Increased competition from other online travel agencies
Economic fluctuations and disruptions due to geopolitical issues
Changing consumer preferences towards travel and tourism