SUMMARY
- MakeMyTrip saw a 797% rise in its net profit reaching $17.9 million in Q2 FY25.
- Its income soared by 25.1% to $211 million in Q2 FY25.
- The company cited that Q2 was a seasonally slow quarter.
Online travel aggregator major MakeMyTrip saw a 797% rise in its net profit reaching $17.9 million in Q2 FY25 from $2 million in the same quarter last fiscal. However, the profit saw a decline of 3.71% QoQ from $18.59 million in the preceding quarter.
The company cited that Q2 was a seasonally slow quarter as its revenue dropped 17% sequentially from $254 million in Q1 FY25.
MakeMyTrip’s income soared by 25.1% to $211 million in the quarter under review compared to $168.7 million in Q2 FY24.
MakeMyTrip attributed its improved earnings to a surge in demand for travel, both within India and internationally in Q2 FY25. The company pointed out that this increased demand led to a notable growth in its air travel ticket sales, hotel and package bookings, and bus ticket sales.
Air ticket sales saw a 25.6% increase in the second quarter, reaching $96 million compared to the $80.2 million in the year-ago quarter. Meanwhile, the hotel and package business saw a 15.5% growth, climbing to $90.7 million from $75.6 million in Q2 FY24. The revenue from the bus ticketing section also saw a 25.4% jump to $27.1 million from $21.8 million in Q2 FY24.
As for the expenses, service costs rose by 23.6% to $49.8 million in Q2 FY25, compared to $40.3 million the same quarter the year before. The increase in service costs was mainly attributed to higher annual salaries due to a policy change in Q1 FY25.
In terms of personnel, the company saw a rise of 12.5% in their operating expenses to $39.4 million from $35 million in the same quarter last year. This increase was mainly due to higher wages given in the first quarter of this fiscal year.
The marketing and sales promotion expenses also grew 43% YoY to $35.8 million in Q2 FY25, due to the company’s focus on events and brand building initiatives.
Rajesh Magow, group chief executive officer of MakeMyTrip, said, “We are pleased to have achieved sustained growth in a seasonally slow quarter. Our unwavering focus on innovation, powered by advanced technology to deliver a differentiated customer experience, has been a key driver of this progress.”
