Marketing and sales promotion expenses for MakeMyTrip increased by 31% to $40.1 million in the quarter ended June 30, 2024 from $30.6 million in the quarter ended June 30, 2023, primarily due to an increase in variable costs and discretionary expenditures such as expenses on events and brand building initiatives in response to the robust travel demand in India in the June quarter of 2024 as compared to the same period last year, the company noted in its quarterly report.  

Additionally, the company incurred customer inducement costs which include adjustments for promotions netted against adjusted revenue of $74.2 million in the quarter ended June 30, 2024 and $61.2 million in the quarter ended June 30, 2023.

Revenue as per IFRS grew by 31.4% YoY to $254.5 million in Q1 FY’25 from $196.7 million in Q1 FY’24. Adjusted Operating Profit registered growth of 29.9% YoY and reached $39.1 million in Q1 FY’25 compared to $30.1 million in Q1 FY’24, the company noted in an SEC filing.

Profit for Q1 FY’25 was $21 million, including income tax expenses of $8.5 million due to a reversal of the deferred tax assets.

Commenting on the results, Rajesh Magow, Group Chief Executive Officer, MakeMyTrip, said,
“We are pleased to see a robust start to this fiscal year. We believe that the long-term growth story of India's travel and tourism sector is fuelled by multiple macroeconomic drivers like increasing government investments in travel infrastructure, rising disposable incomes of the middle class, and increasing propensity to travel. These drivers indicate that India's travel and tourism industry growth is expected to be higher than the country’s GDP growth rate. We aim to continue to drive our growth by capitalising on the shift from offline to online buying and expanding our customer base and wallet share.”