Hello, everyone. I'm Vipul Garg, Vice President, Investor Relations at MakeMyTrip Limited. And welcome to our fiscal year '22 - and fiscal year '22 Fourth Quarter and Full Year Earnings Webinar. Today's event will be hosted by Deep Kalra, our company's Group Chairman and Chief Mentor, joining him is Rajesh Magow, our Co-Founder and Group Chief Executive Officer; and Mohit Kabra, our Group Chief Financial Officer. As a reminder, this live event is being recorded by the company and will be made available for replay on our IR website shortly after the conclusion of today's event. At the end of these prepared remarks, we will also be hosting a Q&A session. Furthermore, certain statements made during today's event may be considered forward-looking statements within the meaning of 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 during this event 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 Statements section of the company's annual report on Form 20-F filed with the SEC on July 13, 2021. Copies of these filings are available from the SEC or from the company's Investor Relations department. I would like to now turn over the call over to Rajesh for his remarks. Over to you, Rajesh.

Thank you, Vipul. Welcome, everyone, to our fourth quarter and full year earnings call of fiscal 2022. I hope everyone joining us today is keeping safe and healthy. India went through third COVID wave with Omicron variant that started in December 2021 and continued during January and February. While the reported cases were high, severity of infection was low as compared to the delta variant, they're possibly aided by significant vaccine coverage, which has now crossed about 1.9 billion doses. Travel slowed down with the onset of Omicron but picked up again later part of the quarter when Omicron started to recede. Demand started to come back, especially for leisure segments, albeit momentum remained under pressure due to inflationary pressure due to price increase of fuel leading to high airfares. This full fiscal year overall was the second pandemic impacted year for travel sector with the robust recovery phases in between waves. However, what is encouraging now is that pandemic-related movement restrictions have been lifted across India and pretty much in the rest of the world, except China, leading to travel coming back to near normal. Consumer sentiment for travel, especially for leisure is quite positive right now, and more and more people are looking to travel for vacations in 2022. Government of India also opened commercial international flights from 27th March, and this is helping revive the international travel demand as well. In fact, as we enter summer holiday season, we are witnessing pent-up demand for both domestic and international leisure travel. While the interest and demand momentum has been strong, we are watchful of geopolitical crisis, inflationary pressures and its ripple effects on the overall economic environment and travel demand in the future. As highlighted earlier, there has also been a significant improvement in online buying behavior during…

Thanks, Rajesh. Hello, everyone. I hope you are all staying safe and healthy. Online travel booking in India is still an under penetrated market. Our aim is to continue to grow our offerings and bring more and more users on our platform via the newly built travel use cases, while ensuring that high repeat rates drive profitability in our leading business segments. As reported earlier, during the last couple of years through the pandemic, we have adopted a two-pronged strategy on cost rationalization to drive better operating leverage. Firstly, we have made concentrated efforts towards long-term fixed cost reduction and secondly, brought in more efficiencies in our variable expenses and in particular, the customer acquisition costs. And as a result of this, despite a 12.4% sequential decline in gross bookings versus the previous quarter, we maintained strong profitability and post an adjusted operating profit or adjusted EBIT of about $12 million, adding back non-cash amortization and depreciation, the adjusted cash operating profit or the adjusted EBITDA stood at about $15.5 million. For the full fiscal year FY '22, adjusted operating profit is at about $23.2 million as compared to an adjusted operating loss of $18 million in the previous fiscal year and a loss of about $70 million in full year '20, which was the pre-pandemic year. Moving on to our business segments. During the quarter, air ticketing adjusted margin stood at about $44.8 million, representing a growth of 20.5% year-on-year in constant currency terms. This is the first quarter where we have seen growth over pre-pandemic comparable quarter of Q4 FY '20 in the domestic air ticketing market. Considering that regular international flights have been restarted since 27th of March '22, the recovery in the international ticketing segments, which stood in the 40s during the reported quarter is likely…

Thank you, Mohit. Anyone who wants to ask a question to the management can please click on the raise hand option, and we will take the questions. The first question is from the line of Gaurav Rateria of Morgan Stanley. Gaurav, you can unmute your line and ask your question.

Hi. Congratulations on rate performance. Am I audible?

Yes, Gaurav.

Yeah. The first question is, typically, in a down quarter where we see an impact because of various COVID waves, we have seen competition getting more impacted than MakeMyTrip. So has that been the case in the current quarter, which is what led to the market share increase? And has that kind of played out in the hotel segment as well?

Yeah. Hi, Gaurav, maybe I can take that. Yeah, I guess, historically, post-facto when we look at all the numbers or when you just compare it from the market, it probably is the case. And I think it's a testimony of the fact long-standing - presence of the brand across the segments that we have and very high repeat trade that we also have on our platform. As I was mentioning in the script, our repeat rate is about 70% plus, right? So obviously, that is what we have seen as a trend historically. As far as this reported quarter is concerned, I guess we will wait and see, and it might as well be the case as well.

All right. The second question is with respect to some of the partnerships that you talked about. It will be great to get some color on what kind of traction that we are seeing there? And how different it is from historical partnerships that we have had and where not material progress happened, do you expect this to really become big at some point in time?

Yeah. Again, a good question, Gaurav. No, I would say specifically, if you were referring to My Affiliate partners sort of programmers partnership that we had with Amazon Pay that we've gone live with and we very recently gone live with the PhonePe as well. As I highlighted, the objective of these partnerships are essentially trying to ride on the sort of broader and wider customer reach on to the deeper India that these platforms have by virtue of them being in those categories, right? So which clearly sort of reaches to our Tier 3, Tier 4 cities as well. So the early sort of trends that we have seen from the numbers happening on these platforms, clearly, we are seeing one that we're seeing new user contribution coming in more and more from Tier 3 and Tier 4 cities, which is very encouraging, which is exactly what was our objective as well. And we have seen decent traction on the absolute number of sort of bookings also coming in from these platforms, especially Amazon Pay because PhonePe, we've just sort of gone live recently. And in the subsequent quarters, we should be able to share more color on that. But as far as Amazon Pay is concerned, I guess one difference from the past maybe some of the similar sort of partnerships that we had was that this time around, the integration is deeper and with our brand. So from a consumer point of view, when they go on Amazon Pay, they basically are getting the benefit of MakeMyTrip brand, pretty much the same UI, same product experience because - because that's what is controlled from a pricing standpoint. It's effectively from a consumer point of view, the transaction is happening on MakeMyTrip. So the reliability or the trust in the brand that has been there on the MakeMyTrip you get naturally along with sort of riding on the - to the broader base of traffic on these platforms.

That's really glad to know that. Last question is to Mohit, on how should one think about the advertising and sales promotion expenses, especially in a normalized environment, I would assume that it kind of should increase from the current levels where you did not require to spend so much and competitive intensity to a little bit increase compared to a down quarter like the March 2022 quarter?

Yeah. I mean, you've seen that variability in the multiple quarters that we have reported even during the current fiscal year. The recovery was kind of better in Q3, and therefore the spend were slightly higher. And the recovery in Q4 was marked by the Omicron variant, and therefore, we've kind of seen much lower kind of not only absolute expense but also lower marketing and promotional expense as a percentage of gross bookings. So I think we continue to kind of keep this broadly in line with the growth momentum of the recovery momentum. Once you kind of well past the overall kind of pre-pandemic levels, both on domestic and international, I think we'll have a much better kind of competitive versus the pre-pandemic kind of expense levels, which used to be about 9% to 10%. We - in the current trending, we don't see this really kind of going anyway beyond, say, the 6.5%, 7% mark. But you know, again, too early to call that out. Like I said, we'll take it step at a time, at least now that we've kind of been close to complete recovery on the domestic side, the fact that we are kind of - which is a larger part of the business, close to about 75% of the business, even pre-pandemic used to be domestic. Considering that, domestic has completely come back, and we are able to see significant reduction in the customer acquisition cost. I have reason to believe that we'll be able to kind of do a similar kind of an efficiency improvement even on the international side of the business. So overall, the trending should not change very differently. All the quarter-to-quarter, the numbers would change based on actual recovery.

Great. Thanks a lot. And all the best.

Thank you, Gaurav.

Thanks.

Thank you, Gaurav. The next question is from the line of Prashant Katri. Prashant, you can unmute yourself and ask the question.

Yeah, hi. Thank you for giving me the opportunity. So I had questions on hotels as well as bus in terms of the growth that we've seen on the unit metric side. So hotels is just about 2% to 3% growth, and bus is actually a drop. Can you just explain what is happening there? Because I believe the market should probably be growing faster than that, but maybe the around.

Yeah. Maybe I can take that, Prashant. No, observation is not off, Prashant. But the reason is, and even if you look at even historically, you would always see that the overall recovery coming out of the waves, this quarter, mind you, as we highlighted, was actually January, February, a large part of the quarter was impacted by Omicron. And when we see the recovery, the first segment to recover is always flights, and then it starts - then hotels and then bus sort of fall in place. And then specifically for bus, it is also a function of, as we were also highlighting in the script, it was also a function of some of the use cases, which is effectively linked to the office going people, which is effectively linked to the opening of the offices, which has happened only very recently. And there are some specific reasons why it takes a little bit more time. There's a lag effect for bus recovery and which is exactly what we are seeing in current quarter. So it's just a matter of this recovery happening with a little bit of a lag effect, both for hotels and bus and nothing else. And we are currently seeing that robust recovery coming on both hotels and bus in the current quarter.

Okay. Thanks for that. And the other question was just on the profitability side. Any new thoughts in terms of how much margin do we want to achieve by when? Because you would obviously notice what is happening globally in terms of investor expectations are rising in terms of higher profitability sooner rather than kind of waiting forever. I mean any thoughts that you have in terms of maybe an improved guidance on that front would be great.

Sure, Prashant. Maybe I can take that. And just to kind of add to what color Rajesh had shared on the previous question. Just also wanted to call out that the - actually, on the hotel side, like we have been saying, the recovery has been a bit slow in the budget segment of hotels. And as you would recollect, close to about 50% of our volumes is to come in from the budget segment, where we are seeing gradual recovery, whereas if you actually look at the mid to the premium segment, I think we're kind of already sitting at close to pre-pandemic or higher than pre-pandemic kind of volumes. So that's one of the reasons why the overall recovery, particularly on the segment side, kind of because the volume numbers on the budget are much more, the recovery looks a little muted in hotels because of the budget segment per se. In fact, the recovery in gross bookings is much better than it is on the segment side, for the same reason. I thought I'll just call it out. On the profitability side, like you would have seen, I think, through the year, at least our guidance for the last fiscal year was that considering the kind of waves that we are seeing on the pandemic side and last year, it's not two pending waves, one in the first quarter and the second in overlapping between the third and fourth, callout was that we would like to be in that plus or minus $10 million range, highly impacted quarters could see small negative adjusted operating losses, whereas the good quarters on recovery we could possibly be at the top end of the range. And if you see this quarter also, the last two quarters, we've kind of beaten…

Am I just that - I mean, our concern is that, I mean, you have been in the business for 20 years, and yet to kind of make a decent profit on the net bottom line. I mean there would come a point where maybe you'll also get disrupted and we would rather that you kind of made some nice cash profits before that eventuality happens. So I mean there is that maybe a nice time window out here today when the competition is lower when the travel is recovering and when the hotels and airlines want these passengers and customers to come in, which is a new - could be looking to make profits. Maybe this vendor will not kind of last forever. That's the only concern we have.

No, of course, partly to kind of look at it in a - while the business has been in operation for 20 years for all practical purposes, the domestic business started only about 15, 16 years back. And within that, if you see the business, which is kind of predominant at that point in time, which is air ticketing that is probably as profitable as the biggest in the OTA market globally, right? Whereas if you look at some of the other segments beyond air ticketing like hotels, et cetera, we have been in that segment only for about 5 to 7 years for all practical purposes. And therefore, the larger mix of the business now is coming in from non-air ticketing segments. And these non-air ticking segments have been kind of, like I said, been only in play for the last 5, 7 years. And therefore, they'll need time to kind of get into a mature phase of profitability. But they'll definitely get there over the time period of, say, the 10 to 20 years that you're looking at. So I think we are very short of that on the other segments. Air-ticketing clearly is comparable and is on that path already. Some of the other segments will get onto that path and overall take the profitability higher for the blended business.

All right. Thank you.

Thank you, Prashant. The next question is from the line of Vijit Jain of Citi. Vijit, you can please unmute yourself and ask your question.

Thanks, Vipul. So my first question is any impact you're seeing in your customer acquisition costs from the new Apple privacy rules? And do you have any sense of any impact that could happen from whatever Google might do? And related to that, do you think that impacts some of your global competitors like booking Airbnb, should they decide to come back into India at some point now that international is recovering?

Yeah. Hi, Vijit, maybe I can take that. On the first question, the answer is no. We haven't really seen any impact yet, and we'll watch the space as it goes. And it's also the fact Vijit that as we've been sharing earlier as well that we do have a very high share of direct traffic, direct/organic traffic on our platform, given the fact that the brands have been pretty strong over the years, and this is across all three brands that we have. So the short answer is so far, we haven't really seen any impact, and we'll see how it goes. As far as your second part of the question is concerned, Booking.com and Expedia or any of the international OTAs. And see, they have been around. I mean, they have been around for many years and maybe during the pandemic, the focus was given the international borders have not really opened up our focus was more on their core markets. But for the last couple of quarters, they are active and they will continue to be a sort of active in the domestic market as well. And from our point of view, our strategy and execution road map is pretty focused on continuously sort of keep improving the customer experience, making sure that the supply depth is there, making sure that our penetration goes to Tier 3, Tier 4 cities. There are a bunch of investments that we made during the pandemic on sort of going out and reaching out to the different demand segments, as we highlighted, even the non-direct B2C segments, et cetera. All of these investments that we've made in the last couple of years are only going to help. Additionally, it's also all the adjacent cases that we have sort of invested behind [indiscernible] Now all of them are just going to help us get more and more new users and more and more established our brands further on consumers' mind in terms of just the comprehensive shop for travel use cases of all kinds and even enabling travel use cases, including consumer lending and so on. So I guess we will continue to keep staying focused on our - executing our strategies and healthy competition is always welcome, and we'll keep sort of dealing with it.

Thanks, Rajesh. Rajesh, my second question is on the My Affiliate program that you talked about. So first off, so is that across all segments already that is bus, train, air as well as hotels? And a related question with that is you mentioned PhonePe. I'm just curious given that PhonePe as a part of Flipkart, which has Cleartrip? How does that work in that sense?

Interesting. The first part of your question is to start with flights and hotels, and we can always add more services as we go along, but to start with the [indiscernible] and hotels. We do have RedBus independently, by the way, powering Amazon Pay even before this MakeMyTrip affiliate alliance that we had. And so the bus was already there. Bus was already there on PhonePe as well. We don't have rail yet, but potentially, we can add and maybe we can add the other ground transport, et cetera, as well as we go along. And the second part of question, Vijit, is that operationally, otherwise, PhonePe and Flipkart sort of run - are being run completely independent entities. There was absolutely no sort of concern. There are different business models, differently and independently run outfits. And there were no concerns because we were, in any case, using PhonePe even historically, just to get the new user acquisition from them, like many other players in the market would be using them. And this was an opportunity to see if we can sort of exclusively power them from flights standpoint and subsequently hotels as well. And therefore, we went ahead. But we don't have any sort of such concerns them being having the same ultimate parent and so on.

Got it. Thanks, Rajesh. So if I can just squeeze in one final question. You mentioned some of these investments during the pandemic, right? And I was just sorry if this is already clarified in the filing. But I see your net cash generated from or used in investing activities is around $119 million for 2021, went to $78 million in 2022. If you could give a broad stroke overview of what this is.

Maybe we could take that as a follow-up.

Yes, yes, sure. Thank you. Those were my questions.

Thank you, Vijit. We have now questions from Sachin Dixit. Sachin, you may please ask your question now.

Sure. Hi, Rajesh and Mohit thanks for the time. I have a quick question on the customer side, right? So customer behavior and customer loyalty. So one, like if you can provide some color on your MMT Black programs, how are they going on? Like are customers willingly paying or it's mostly getting passed on as like bundled - bundle cost with the credit cards and et cetera. Secondly, can you - do you - like do you have any color on the wallet share that the customer is spending on them? I do understand the repeat rates and all are pretty good. But any color on like - on the overall wallet share that a typical loyal MakeMyTrip customer expanding on...

Sachin, your voice was breaking. But I heard part of your question, and I think it was to do with our loyalty program, Black program, and let me try and address that. So our loyalty program, Black-MMT Black on MakeMyTrip and Go tribes [ph] and, Goibibo is actually doing very well. I think overall, over the years from all the learnings in the past, we've been able to effectively cut the cord on the loyalty program for an intermediary like us that has been now working quite effectively. We continue to keep growing the number of users. And I can give you just one sort of data point that will support that what I just said. Our repeat rate on in general overall platform versus the repeat rate coming from the Black loyal members coming from Black loyal members is about 20% higher than the normal non-Black members. So - which is sort of a good measure to test how the program is working effectively or not. So clearly, from a consumer behavior standpoint, when they see the value when they see the value, the real value, tangible value coming through as part of the loyalty program, there is clearly traction to that program.

Sure. The next question that I had was on the customer wallet share color, like - so any context on how much of the wallet share is the customer spending on MakeMyTrip?

Yeah. No, I think it's a very good question. And part of the reason why we are a comprehensive shop is that the goal behind the scene is to get more and more wallet share for practically every travel use case that the customer might have. So just to give you an example, from a cross-sell, upsell standpoint, we see a lot of the flight bookers end up buying hotels with us and vice versa. And a lot of the off led [ph] we've been acquiring a lot of the new users on our rail platform. And from rail platform, we have started to now very effectively sort of also offer bus as a cross-sell option as well for a lot of the, let's say, for example, we listed customers on rail, which is like a very big use case in India and then you end up doing that. So - and so basically, what we are trying to do is to, from a customer point of view, take a view with the customer at the center and think about possible every travel use case that he would need from his point of view or she would need from her point of view in that session or in the subsequent sessions or during the course of the time, right? So - and will we be able to sort of address every possible need or not. And the direct output of that would be that we'll get more and more wallet share from one particular customer over time. That's really the idea. We haven't really have any sort of the actual wallet share reported out. But over the next few quarters, when we have more data on this, given that the cross-sell and upsell is effectively picking up across the platform, we should be able to give more color on that.

Great. Thank you.

Thank you, Sachin. If anyone has a question, please raise your hand. Otherwise, we have no other person in the queue. We'll just wait for a few more seconds if anyone has any questions. All right. Thank you very much. We have no more questions, Rajesh, in the queue. So we can end the call with your closing remarks. Thank you.

All right. Thank you, everyone. Thank you for your time for the call today. Stay safe and healthy. Thank you so much.

Thank you. You may please disconnect.