India online travel agency MakeMyTrip Group (MMT) has reported its highest ever quarterly gross bookings, revenue and profit for its fiscal 2024 third quarter.
The Gurugram, India-based business reported a 20% increase in gross bookings to $2 billion while revenue increased 26% to $214 million. Adjusted net profit increased to just over $39 million compared with $16 million year over year.
Group chief executive Rajesh Magow said it was a “seasonally strong quarter” for the OTA with strong demand for both domestic and international leisure travel.
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“We are excited about the opportunities that lie ahead of us, as the travel and tourism sector is a focus area for the Indian government and is expected to benefit from increased investments in travel infrastructure,” he said. “Additionally, from a consumer perspective, the growing disposable incomes of the middle class in India are expected to continue driving India’s travel and hospitality growth in the coming years. We remain committed to excellence and innovation, aiming to meet and exceed the diverse travel aspirations of Indian consumers.”
Similar sentiment was expressed by Phocuswright analysts recently with predictions that India will emerge as “one of the top inbound source markets for many countries.”
MMT reported air ticketing revenue up 35% to $52 million while adjusted margin increased 13% to $79 million for the quarter that ended December 31. Both increases were attributed to an 18% rise in gross bookings.
Revenue for the hotels and packages business increased 22% to $126 million in the quarter with adjusted margin up 37% to $99 million. Bus ticketing revenue, meanwhile, increased 24% to $24 million with adjusted margin up 32% to $27 million.
Sales and marketing costs for MMT increased 25% in the quarter to $36 million compared with $29 million year over year, which the OTA attributed to an increase in variable costs as well as investment in events and brand building.