Traveltech platform MakeMyTrip's Q4 profit jumps to $171.9 Million

Traveltech giant MakeMyTrip announced a substantial increase in profits for the fourth quarter of the fiscal year 2024, with a net gain of $171.9 million.

This marks a significant rise from the $5.4 million recorded in the same quarter of the previous year. The company attributes this growth to a one-time tax credit and gains from convertible notes.

Financial highlights

During the fourth quarter, MakeMyTrip achieved gross bookings of $2,039 million, an increase from $1,673.9 million in the corresponding period the previous year.

For the entire fiscal year 2024, the company reported gross bookings of $7,954.4 million and a net profit of $216.7 million, recovering from a loss of $11.2 million in fiscal year 2023.

Tax credits and convertible notes

The substantial rise in profits includes a one-time credit of $126.1 million from the recognition of deferred tax assets and an additional one-time gain of $30.6 million due to the change in the carrying value of the company's convertible notes, which are due in 2028 and measured at amortized cost.

Personalized travel offerings

Rajesh Magow, the CEO of MakeMyTrip Group, attributed the company's financial success to its strategic focus on providing personalized travel experiences.

"Our strategy to serve millions of our customers and first-time travellers through a comprehensive portfolio of travel and ancillary products with personalized experiences is yielding results," Magow stated. This approach has notably contributed to robust growth during what is traditionally a slower period for leisure travel.

Magow also highlighted the resurgence in travel demand within India, noting that both leisure and business travel have now surpassed pre-pandemic levels. "We have bounced back stronger from the COVID-19 pandemic by posting our best-ever financial performance during fiscal year 2024 in terms of both gross bookings and profit," he said.