Good day, and thank you for standing by. Welcome to the MakeMyTrip Limited Fiscal 2021 Fourth Quarter and Full Year Earnings Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Jonathan Huang, Vice President of Investor Relations at MakeMyTrip. Please go ahead.

Thanks, Catherine. Welcome, everybody, to MakeMyTrip Limited's Fiscal 2021 Fourth Quarter and Full Year Earnings call. I'd 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 U.S. 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. The company undertakes no obligations to update information to reflect changed circumstances. Additional information concerning these statements are contained in the Risk Factors and Forward-Looking Statements section in 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, Group Chief Financial Officer. Now let me turn the call over to Deep to begin our call today.

Thank you, Jon. Welcome, everyone, to our fiscal fourth quarter and full year earnings call. I sincerely hope all our listeners are staying safe and healthy, especially those residing in India today. Since our last earnings call in late January, the pandemic situation in India went from cautiously hopeful to catastrophic in a very short period of time, resulting in the rise of the second wave of new infections beginning in late March. Sadly, the second wave impacted a lot more people in the country, including many of our colleagues and their loved ones than the first COVID wave in March 2020. In these times of crisis, the company, through the MakeMyTrip Foundation, moved very rapidly to provide support wherever possible. As just one of many examples, our team worked tirelessly to secure staff medical facilities for our afflicted employees and their loved ones. We had also secured vaccine access for employees and their families and created around-the-clock COVID task force to help them find medical support and assistance when needed. The leadership within the company, through health care experts, have constantly engaged with employees to assess their mental well-being and offer positive vibes to boost morale during these highly challenging times. In addition, the foundation procured oxygen concentrators and ventilators to donate to nearby hospitals and other welfare associations to help the local community and dedicated resources to help local government agencies with relief work where necessary. Recently, we also launched CoviRide, an open peer-to-peer community platform to help individuals and organizations seek and provide transport-related assistance. The program is aimed to help provide emergency commutes, ambulance services for COVID-19, rides to vaccination or oxygen centers to and from the hospital and for medical equipment and medicines transfer. As the country and the company continues to endure through the…

Thank you, Deep. I hope everyone listening in today is staying healthy and safe during these tough times. On our last earnings call, based on the trends seen in January, we were quite hopeful of a continued pace of travel recovery, which we saw throughout most of February. However, by March, as COVID infections began to rise, sentiment and demand for travel began to moderate. While the current pandemic-related disruptions remain in effect and is likely to persist for some more time, I am hopeful and optimistic that this crisis will be behind us in due course as state-level restrictions, lockdowns and the gradual ramp in vaccination will be effective in controlling the second wave. In the meantime, we fall back on the playbook that we developed during the first wave to focus on user experience improvement projects on our platforms as well as keeping costs under control to navigate through the second wave. As you can see, our Q4 financial performance was quite encouraging, where travel recovery momentum quarter-on-quarter continued across travel categories. The highlights of the quarter were the recovery of all key segments on combined basis, recorded of over 70% relative to the same quarter a year ago as well as significant improvement in adjusted operating profit, both quarter and on -- both quarter-on-quarter and year-on-year. Mohit will share full details in his section in a bit. Despite the pandemic effect, the scale of our company continued to increase and reached 51 million live to date customers in Q4 of fiscal year '21. At the same time, new user contribution to our brands also increased by 200 basis points since February of last year to represent 22% of the total this March. While we have been able to capture new users, our repeat rates have also remained…

Thanks, Rajesh, and I hope all our listeners are staying safe and healthy. As we have previously shared, due to the ongoing pandemic, our financial focus as a company has been and continues to be optimizing our operating costs while trying to maintain minimal quarterly cash burn throughout this entire fiscal year. We plan to remain on this course until we reach full domestic travel recovery despite the near-term challenges of the second wave. Our relentless and disciplined cost optimization, coupled with the recovery in the domestic travel demand seen for most part of the reported quarter, helped us deliver operating profits of $11.1 million during Q4, which was ahead of our own expectations. This is more than double the adjusted operating profit of the previous quarter, demonstrating the high operating leverage potential as a result of our rationalized cost structure. In Q4, overall business recovery compared to the same quarter last year, which was also a quarter where the pandemic had started to take its toll on the travel business, was about 64% in terms of gross bookings in constant currency terms, reaching nearly $760 million. For the full year, gross bookings reported were over $1.6 billion or about 28.1% of the bookings achieved in the prior fiscal year of 2020 as the nationwide lockdowns and the ongoing pandemic has severally impacted travel demand across India for most part of fiscal year 2021. Moving on to our business segments. Air ticketing adjusted margin stood at $38.2 million, representing a recovery of 81.5% in constant currency terms when compared to the same quarter a year ago, and over 47% quarter-on-quarter improvement over Q3. For the full fiscal year, adjusted margin for the air ticketing business was $80.2 million or nearly 34% of the levels achieved in fiscal year 2020 in…

[Operator Instructions] We have a question from Ashwin Mehta with AMBIT Capital.

Just 1 question, Mohit. This quarter, you had the air ticketing take rates improve substantially to around 8.9%. So what were the drivers of this? And do you think, at least, in the period where airlines have to push inventory, there can be possibly an elevation here given that you indicated there are incentives which are driving this uptick?

You're absolutely right. And considering that the airlines are operating at low load factors, they're clearly incentivized in terms of driving demand. And considering that we have seen large volume providers over the years, there has been incentivization coming in from the airlines to perk up demand on multiple sectors. And that is what is helping us optically kind of drive up the gross margins on the air ticketing business. Again, this is kind of completely linked to the load factors, which are currently low. And like we have been mentioning as the load factors stabilize, with gradual recovery in travel demand, we believe the airline margins will kind of come back to the 6% to 7% levels.

And is this largely being given to, say, MakeMyTrip because of their dominance? Or this is across the industry wherein OTAs would have benefited because of this phenomena?

I would guess this would kind of be a bit of both. Go ahead Rajesh.

Go ahead, go ahead Mohit.

Yes. No, Ashwin, I was saying, this is probably a bit of both. Clearly -- probably see the incentivization kind of working much better, with much better kind of volume linkage coming through on platforms like MakeMyTrip and ibibo. And therefore, we believe this would probably be slightly better than what is being made available to the rest of the industry.

And just 1 question in terms of -- you mentioned that you've seen a 35% increase in terms of the SRTC inventory on your platform. So SRTC would be -- like we've disclosed in the past that we have around 1.5 million plus seats in bus ticketing tied up. So SRTC would be how big in terms of overall inventory on our platform?

Yes. Happy to take that, Ashwin. The overall size of the SRTC market, by the way, is as large as the private operator bus market as well. So the difference was, and which is what we're trying to highlight the benefit that has happened during the pandemic, the difference was that the private operators were coming online or had already come online in a big way and sort of becoming more tech-savvy or -- and we've been also getting -- helping them with the tools, et cetera, to get their inventory online. The state transport undertakings were taking time and for various reasons. So not necessarily all of them were absolutely up to speed in terms of just bringing the entire inventory that they had on the online platform. So what happened during the pandemic, with the last over several quarters now, I mean just over a year as the COVID onset happened last March, that the off-line distribution sort of dried up, and then there was a clear desire and a lot of efforts were put in to bring that inventory online. So as a result of that, what inventory levels we used to have it on our platform earlier went up by 33%, as compared to what we used to have at pre-COVID level. But in terms of just seats, it is pretty much the -- or the value terms, it is the same size as the private operator bus market as well.

And just 1 last question. So we've around 51 million life till date transacting users. Now what you mentioned was that cab booking and train booking is helping you expand to the vernacular Bharat. So is there a divergence in terms of, say, -- or the overlap is much lower between, say, hotels and air ticketing users versus bus ticketing, cab and others? And does that, at some point in time, help you in terms of graduating the number of users, which are currently, say, around 50 million 51 million?

Yes, you’re right, Ashwin, there is – that’s really the objective cure. I mean when we were trying to push the rail transactions or for that matter, intercity cab, between the two, intercity cab might have a relatively speaking more overlap than rail users and that too the rail users of specifically bookings, second class bookings and not necessarily the first-class or the air conditioning seats or the customers who are using those sort of reservations. And therefore, that we are seeing the benefit upon our platform that these initiatives are helping us getting new users because if you really see the overall e-commerce users are more than maybe about 150 million today, but the overall travel e-commerce users might be about 70 million plus/minus. The idea is to basically expand the new users coming on our platform, and this will certainly help it. Definitely, we’ve seen a not necessarily less overlap, but also the fact that there has been a decent amount of cross-sell happening to the other products over time as well.

Our next question comes from Gaurav Rateria with Morgan Stanley.

Congrats on solid execution. I have a couple of questions. Firstly, we just wanted to get a little perspective on what you think about the horizontal platforms entering into the travel vertical? We always thought it's more like a vertical business. Horizontals have not been able to do anything globally. Is there any threat from horizontals trying to scale up this part of the business? Or how to think about that?

Yes. Gaurav, it's a good question. And this is not a new occurrence. We have seen horizontals trying to get into travel in the past as well. And that we have also, at some point of time, powered some of the horizontals doing this. I think it's an obvious thing for a horizontal to want to get into more and more categories. Sometimes the growth in the same categories doesn't always keep pace with how fast you'd like to grow, and therefore, you have the customers, you'd like to sell them other things. I think where it has worked is unidimensional or 2-dimensional products, which is largely around ticketing. So horizontals have been successful in selling rail tickets definitely where I think largely there is not even such a price issue because there's only one supplier. There is effectively the only variable in the mind really is, is the availability or not. And so therefore, rail tickets have moved quite well, particularly, if discounts are offered, et cetera on platforms. In addition to that, I think bus ticketing has seen some support, but less than rail. And if we come to air tickets, then it's even less. It's a 2-dimensional product. It's really around price and timing. But still, I think people then have issues and concerns when you're buying something travel. What we have found through our research consistently is that the concerns are very different. So firstly, when people are on a horizontal buying, let's say, something they need, whether it's groceries or something semi-durable, et cetera, they're not in the same frame of mind as travel. So when you're in travel, it's a different frame of mind. When you're looking for travel, you want to go to an expert. And then when people start thinking about possibilities of changes, possibilities of cancelation, specifically during such kinds of high flux, then they definitely want to work with specialists we have seen. And therefore, if we go to even more evolved products. So let's say, international air tickets, they have not succeeded at all on horizontal platforms, generally speaking. And finally, if we talk about hotels and accommodations, again, we have found that they haven't moved actually the needle when it comes to horizontal platform. It's really the realm of travel-focused, travel-dedicated players. So I'm not saying that there will not be any impact. Definitely, I think on the ticketing side of the business, we can expect to see that. There is going to be another mouth of the tunnel, someone who's getting into this today like Flipkart, who's bought Cleartrip, is definitely going to invest in this line. But are we overly worried or concerned? No, because we've seen this play out in the past, not just in India and even overseas, it hasn't really worked out as you get into the higher value-added travel services.

Great. Secondly, a question for Rajesh. Any color on the market share in the domestic air side and how it has changed during the course of the pandemic, any color on that?

Yes, sure, Gaurav. Like we mentioned that we've been actually gaining incrementally. I think we had announced last quarter, same year, our share was about 27-odd percent and in this reported quarter, we'll be over 29% or so.

Got it. And last question for Mohit. When we look at the customer inducement costs, is it fair to say, at this point in time, the large part of the cost will be to drive repeat behavior and very limited part will be to acquire new customers versus, let's say, a year back, when a large part of the cost was to acquire new customer versus to drive repeat behavior? Just trying to distinguish between the -- sort of the customer inducement cost, breaking it up into the acquisition of new users versus repeat behavior.

Yes, sure. No, Gaurav, [indiscernible] the focus has been on driving repeat from the existing customer base, the 51 million customer base I've just talked about, driving repeats to them. And therefore, clearly, a large part of it is directed towards that rather than kind of new customer attrition through the year.

[Operator Instructions] I'm showing no other questions in the queue. I'd like to turn the call back to management for any closing remarks.

Thank you, Catherine. Thank you to our listeners today. I hope you all stay safe and healthy, and we look forward to speaking to all of you soon. You may now disconnect.

Thank you, everyone.

Thank you.

Thanks, everyone.

This concludes today's conference call. Thank you for participating. You may now disconnect.