Thank you for standing by and welcome to the MakeMyTrip Limited Fiscal 2021 Q3 Earnings Conference Call. At this time all participants are in a listen-only mode. After the speakers' presentation there will be a question-and-answer session. Please be advised that today's conference is being recorded. [Operator Instructions] I would now like to hand the conference over to your speaker today, Mr. Jonathan Huang. Thank you. Please go ahead.

Thank you, Polly. Welcome everyone to MakeMyTrip Limited's Q3 fiscal 2021 earnings call. I would like to remind everyone that certain statements made on today's call are considered forward-looking statements within the meaning of the Safe Harbor provision of the US Private Securities Litigation Reform Act of 1995. These statements are not guarantees of future performance, are subject to inherent uncertainties and actual results may differ materially. Any forward-looking information relayed on this call speaks only as of this date. And the company undertakes no obligation to update the information to reflect changed circumstances. Additional information concerning these statements are contained in the Risk Factors and Forward-Looking Statement section of the company's Annual Report on Form 20-F filed with the SEC on August 17, 2020. Copies of these filings are available from the SEC or from the company's Investor Relations department. I'm joined today by Deep Kalra, our company's Founder and Group Executive Chairman; Rajesh Magow, Co-Founder and Group Chief Executive Officer; and Mohit Kabra, our Group Chief Financial Officer. I'd like to turn the call over now to Deep to begin today's discussion.

Thank you, Jonathan. Welcome, everyone, to our fiscal third quarter earnings call. I'd like to wish all our listeners happy and more importantly, a healthy New Year. As we begin 2021, the world continues to deal with the ongoing COVID-19 pandemic, which has impacted most industries and the travel industry in particular. The good news is that since our last earnings call, we have seen vaccines being approved, as well as commencement of an effective phased rollout in India. While the distribution is still in its early stages, we are optimistic that it will gather pace given India's strong mass vaccination history. I'm also encouraged to see India's recorded daily infection rates, which peaked in mid-September has continued to decline steadily thereafter. As the country continues to unlock or reopen, normalization of economic activity is broadening. As disruptive as this pandemic has been, we believe it has accelerated and transformed the way commerce will be conducted in India. With social distancing needs greater than ever, the use of ecommerce has also been rapidly adopted by a country's half a billion plus digital citizens. In fact, some analysts are forecasting a three x increase in online ecommerce transaction values to reach over $180 billion by fiscal year 2025. While online travel as a category is still on its journey of recovery, we believe it's only a matter of time before we also start to accrue the benefits of such structural changes in booking behavior. Now I'd like to share the latest reopening trends for the domestic travel industry, which remains the primary focus of our ongoing recovery today. We believe international outbound travel recovery will eventually gain momentum, but only once herd immunity takes hold across destination countries and the ease of cross border travel presumes. In the meantime, we will…

Thank you, Deep and Happy New Year everyone. Let's all hope 2021 will be a much better year than 2020. Before I get into our operating performance and recovery trends for the quarter, I would like to congratulate our entire team who had worked relentlessly to achieve MakeMyTrip's near term goal as the industry continues to recover. With daily new infection rates on a steady decline since September, improving economic activities and now the rollout of effective vaccines in India, we hope to see 2021 be a much better year for all of us and the industry. In Q3, we were encouraged to see a steady recovery continuing within our domestic business since the country's reopening in late May of last year. This trend has only increased our confidence level on domestic travel recovery, further gaining momentum in the coming quarters, while we wait for international travel to open up. It's also a good reflection on the resilience shown by the industry and our brand, and we hope to emerge even stronger post the pandemic. While much of the recovery has been led by domestic travel demand, we are encouraged to see some strong demand for leisure travel to a couple of international destinations like Maldives and Dubai as well, which have reopened its borders to tourists with safety protocols. We continue to believe outbound travel will provide a long-term growth tailwind for us given the high fragmentation and offline nature of its distribution, but is expected to take a longer time to fully recover. A few other countries have also opened their borders since like Thailand and Sri Lanka, but they are honoring quarantine requirements at present. We look forward to these being reduced going forward. Now I would like to share and highlight our achievements in the fiscal…

Thanks Rajesh and Happy New Year everyone. Since the outbreak of COVID pandemic, followed by complete lockdown in India until late May 2020. Our focus has been to optimize costs, with the objective of minimizing losses during this fiscal year, which has seen business being very significantly impacted by the pandemic. Our relentless focus on cost optimization, coupled with continued recovery in the domestic travel demand has helped us achieve adjusted operating profits during the reported quarter, which is ahead of our expectations we had when we entered this fiscal year. Our overall business recovery compared to same quarter last year, which was pre-pandemic in terms of gross bookings in constant currency terms is nearly 37%. Considering that this number was about 15% in the last reported quarter, it is also reflective of the gradual pace of quarter-on-quarter business recovery that we are seeing led by restoration of domestic travel demand. Moving on to the main business segments, our air ticketing adjusted margin stood at $26 million, which is over 38% recovery in constant currency terms versus pre-COVID levels during the same quarter of last fiscal year and more than double the adjusted margin of $11.9 million achieved in Q2. The adjusted margin in our hotels and packages business stood at $25.2 million, which is about 25% recovery in constant currency terms versus pre-COVID levels during the same quarter of last fiscal year and about four and a half times the adjusted margin of $5.6 million achieved in the previous quarter. As for our bus ticketing business, the adjusted margin stood at about $9 million and represented over 45% year-on-year recovery in constant currency terms and was about three and a half times the adjusted margin of $2.5 million achieved in the previous Quarter. Lastly, on our other businesses, the…

Thank you. [Operator Instructions] And at this time, we do have a question from the line of Manish Adukia with Goldman Sachs.

Yes, hi. Good afternoon. Thanks so much for taking my questions. This is Manish Adukia from Goldman Sachs. Just one question from my end, I wanted to get your sense and congratulations on achieving cash EBITDA breakeven. How sustainable is that number? Going forward, do you believe as demand recovery happens, you should at least be able to sustain this positive cash flow number? Or with demand recovery there might be a need for higher spend in selling and marketing, which could again, put the EBITDA number back in the date. So any thoughts around that will be helpful? Thank you.

Hi, Manish, Mohit here. And let me tag that. Like we have been mentioning over the last few quarters, the intent has been to keep the operating losses down, and pretty much kind of get back to the plus or minus $10 million, kind of an operating cash profit or loss situation what we call it the breakeven range for ourselves to be in that range on a stable basis. I think the last quarter saw us being in that range, but with some losses, and we've seen this quarter with some incremental business recovery, we've kind of been able to breakeven and also post some positive operating numbers over there. We believe as the business recovery kind of continues to keep happening, the endeavor will be to kind of make sure that we continue to remain around the breakeven levels or in the breakeven range that we have called out. As I said we see quarter-on-quarter seasonality changing in India, and also are kind of largely in a competitive in a situation where most players are in the private domain, and therefore, we want to - I mean, in a highly growth market. So, therefore we'd want to kind of keep that flexibility going of being in that operating range of plus or minus $10 million. But the fact that we've significantly rationalized our fixed cost structures particularly around people expenses, particularly around sales, general and administrative expenses, gives us an additional comfort that with business recovery, even if your variable expenses go up a bit in line with volume recovery, the significant pruning in these fixed costs should really help us kind of keep on the breakeven path.

Thank you, that's helpful. Thank you and all the best.

Most welcome.

[Operator Instructions] And at this time, there are no further audio questions. Are there any closing remarks?

Yes, thank you so much for joining our call today. We certainly wish you all good health and look forward to speaking to you soon.

And thank you. This concludes today's conference call. Thank you for your participation. You may now disconnect.

Thank you everyone.

Thank you.