MakeMyTrip (NASDAQ:MMYT) Announces Earnings Results, Beats Estimates By $0.43 EPS

MakeMyTrip (NASDAQ:MMYT) posted its quarterly earnings results on Monday. The technology company reported $0.47 EPS for the quarter, topping the consensus estimate of $0.04 by $0.43, FiscalAI reports. The firm had revenue of $235.16 million for the quarter, compared to analyst estimates of $269.09 million.

Here are the key takeaways from MakeMyTrip’s conference call:

• Strong overall growth: Q2 gross bookings rose 20.9% year over year in constant currency to $2.7 billion, while adjusted operating profit increased 13.8% to $46.2 million. Non-air businesses reached 63.2% of the mix, up from 61.5% a year earlier.
• Air travel remained a headwind: Domestic and international departures declined 7% and 4%, respectively, amid constrained capacity, higher fares, geopolitical pressures and elevated fuel costs. MakeMyTrip maintained more than 30% domestic air-ticketing share, but adjusted operating margin fell to 1.7% of gross bookings from 1.8% because payment-processing costs rose with airfares.
• Hotels and ground transport offset weaker air demand: Hotels and packages adjusted margin grew 20.2%, domestic hotel room nights increased 20.4%, and bus gross bookings rose 29.4% year over year. Intercity cabs also grew more than 40%, although from a small base.
• AI adoption showed encouraging early results: Myra handled more than 90,000 daily conversations and assisted with over 3,000 bookings per day, with users converting at about 1.7 times the rate of non-users. Management said semantic hotel search produced conversion rates roughly 24% above filter-led search, while Myra autonomously resolved more than 53% of certain post-booking queries.
• Balance sheet remained strong, but India IPO timing is uncertain: Cash and equivalents totaled $815 million, and the company repurchased $17.2 million of shares during the quarter. The proposed MakeMyTrip India IPO remains subject to regulatory approvals and market conditions, with no change to management’s previously stated approach.

MakeMyTrip Trading Up 1.3%

NASDAQ MMYT traded up $0.54 on Wednesday, hitting $41.90. 29,850 shares of the stock were exchanged, compared to its average volume of 1,281,496. The company’s 50-day moving average price is $49.80 and its two-hundred day moving average price is $51.54. MakeMyTrip has a 52-week low of $32.67 and a 52-week high of $86.94.

Analyst Ratings Changes

Several analysts have recently issued reports on MMYT shares. Weiss Ratings upgraded MakeMyTrip from a “hold (c-)” rating to a “hold (c)” rating in a research report on Monday. HSBC initiated coverage on MakeMyTrip in a research report on Thursday, July 2nd. They set a “buy” rating and a $70.00 target price on the stock. Wall Street Zen upgraded shares of MakeMyTrip from a “sell” rating to a “hold” rating in a report on Saturday. Zacks Research downgraded MakeMyTrip from a “strong-buy” rating to a “hold” rating in a report on Tuesday, August 18th. Finally, Bank of America lowered their target price on MakeMyTrip from $60.00 to $55.00 and set a “buy” rating for the company in a research note on Tuesday. Five research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average target price of $72.25.

About MakeMyTrip

MakeMyTrip Limited is an online travel company serving consumers in India and international travelers booking trips to and from the country. Founded in 2000 by Deep Kalra, the company operates through a portfolio of travel brands, including MakeMyTrip, Goibibo and redBus.

The company provides online and mobile booking services for domestic and international flights, hotels and other accommodations, holiday packages, trains, buses, car rentals and airport transfers. Through redBus, it also offers bus ticketing services across India and selected international markets.