MakeMyTrip posts Q4 net profit of $3.7 mn

Online travel services provider MakeMyTrip today reported net profit of $3.7 million for the fourth quarter ended March 31, 2011, compared to a loss of $1.3 million in the same quarter last year on the back of growth in air ticketing and hotel segments.

The company's revenue increased by 48.5% for the three months period under review at $31.4 million, as against $21.1 million in the same quarter last fiscal, it said in a statement.

For the year ended March 31, 2011 MakeMyTrip posted total net profit of $4.8 million, compared to net loss of $6.2 million in the previous fiscal.

The firm's revenue in 2010-11 increased 49.3% at $124.7 million, as against $83.6 million in 2009-10.

"Fiscal year 2011 marked an important milestone for MakeMyTrip as we successfully transitioned into a public listed company" MakeMyTrip Chairman and CEO Deep Kalra said.

The company offered innovative products, good value deals and improved booking experience to its customers, which enabled MakeMyTrip to maintain market leadership, he added.

The firm is optimistic of its long term growth prospects as the population of middle class travellers and Internet users continues to expand in India.

"The company is setting its FY12 full year guidance range for revenue less service costs at $86 million to $89 million," the statement said.

This guidance includes the company's views on the possible impact to travel demand from current high crude oil prices and high inflation rates in India, it added.

In February this year, the company had announced acquisition of Singapore-based travel agency Luxury Tours & Travel Pte Ltd (LTT) to expand its presence outside India.

"On May 9, 2011, MakeMyTrip purchased an aggregate number of ordinary shares representing approximately 79% of LTT's fully diluted share capital," the company said.

As per the Share Purchase Agreement (SPA) with LTT and its existing shareholders signed on February 9, 2011, the initial purchase consideration was approximately $3 million in cash and was subject to working capital adjustments as stated in the SPA.

"Additionally, MakeMyTrip will also invest cash of approximately $0.75 million, in one or more tranches until June 2012, for the subscription of new equity shares to be issued by LTT," it said.

MakeMyTrip will also acquire the existing shareholders' remaining shares in LTT in three tranches over a three-year earn-out period ending June, 2014.

The payment under each such tranche will be made in cash and based on valuations linked to the profitability of LTT, it added.