MakeMyTrip Limited (NASDAQ:MMYT) Q3 2023 Earnings Call Transcript

Mohit Kabra: Hi, Vijit. So, if you look at it, I mean, the first question was maybe more on going to be the brand marketing kind of expenses. And generally, if you see historically, you kind of usually have kind of had higher kind of expenses on the brand marketing side, particularly in the high season quarter. So that’s typically Q1 and Q3 from our fiscal year point of view, which is a pretty large. So generally, that is the — those are these quarters where you cannot typically would see higher spends on this particular side. But overall, like I’ve always been calling out, see, overall customer acquisition cost is what is relevant. Some of it kind of possibly pays out with a shorter duration timeframe or some possibly have a longer kind of the lead time as well as a lag effect.

But I think it’s kind of relevant to look at it more in terms of a blended number. And before, I would just say that’s the reason that we kind of call out the marketing and sales promotion kind of expenses together because that gives you a better kind of overall understandings of how customer retention costs are trending. So kind of looking at it in isolation, it may not be a great idea, but you can kind of budget for a slightly higher mix coming in from brand marketing expenses, particularly in the seasonal quarters.

Vijit Jain: Got it. Thanks, Mohit. And my second question was just on the fixed cost base, where are we in terms of run rate?

Mohit Kabra: Yes. So if you look at it in terms of the run rate pre-COVID used to be almost like about $15 million to $16 million. We are is still just shared below $15 million in the reported quarter, that’s what I was calling out that despite almost three inflationary business going through, we are slightly kind of below that run rate, so reasonably good on that.

Vijit Jain: Got it. Great. Thanks for it. Those are all my questions.

Vipul Garg: Thanks, Vijit. The next question is from the line of Aditya Chandrasekar of UBS. Aditya, you may please ask your question. Unmute by yourself and ask your question now.

Aditya Chandrasekar: Yes. Hi. Thanks, Vipul. I have a question on the air side. So this has been seasonally strong quarter, right? And we also saw the passenger data, et cetera, from DGCA, I mean, being quite healthy with record highs, et cetera. Just wanted to understand like, was there a potential of a better growth on the air side? I mean, even ignoring international because we saw 4% kind of Q-o-Q growth and air gross bookings. So could that have been higher considering the large at volumes? Have we lost — I mean, I don’t think we have lost any market share, but just wanted to get a sense of could the growth be better or should it have been better in Q3 considering the volumes as well as it being seasonally strong? And how should we look at that going forward?