India's largest travel portal MakeMyTrip’s scrip gained 3% on Wednesday at Nasdaq after beating street expectations in its earnings for the quarter ended December’10, thanks to bustling travel bookings in the world’s second fastest growing major economy.
The company’s net profit for the third quarter more than doubled to $1.62 million compared to $0.63 million in the same quarter the previous year. Adjusted net profit (excluding employee share-based compensation costs, one time costs relating to listing of shares, interest expense on the liability portion of preference shares and changes in the fair market value of embedded derivatives in the preference shares) also rose over two-fold to $1.77 million.
This translated into earnings per share of 5 cents a share or about 25% more than analyst estimates of 4 cents a share for the quarter.
Revenues also beat expectations with 56.7% rise to $35.79 million for the quarter. Revenues after factoring out service costs rose 59% to $17.28 million.
This was much stronger compared to the performance in Q2, partly due to high travel season in the last quarter of a calendar year. Note that the results are reflective of seasonality in the travel industry. Deep Kalra, Chairman and CEO of MakeMyTrip Limited said, in the investor conference call following the announcement, that the company typically experiences two high season quarters and two low and they alternate, so this quarter was a high season for MMT and the next will be low.
MakeMyTrip’s revenues grew 40.5% year over year to $23.8 million in the quarter ended September’10 with revenue less service cost increasing 41.5% to $12.9 million. The company’s share price had plunged after it reported its results for the second quarter which also had partly to do with the firm reporting a loss of $1.8 million compared to a profit of $0.02 million in the same quarter the previous year.
The company had gone public in Nasdaq in August last year at $14 a share. The shares had zoomed to above $40 commanding market cap of over $1 billion. It closed at $26.8 at Nasdaq on Wednesday.
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