MakeMyTrip Ltd Q1 FY2022 Earnings Call

Hello everyone, I am Jonathan Huang, Vice President of Investor Relations at MakeMyTrip Limited, and welcome to our Fiscal Year 2022 First Quarter Earnings Webinar. Today's event will be hosted by Deep Kalra, our Company's Founder and Group Executive Chairman. Joining him is Rajesh Magow, our Co-Founder and Group Chief Executive Officer; and Mohit Kabra, our Group Chief Financial Officer. As a reminder, this live event is being recorded by the company and will be made available for replay on our IR website shortly after the conclusion of today's event. At the end of these prepared remarks, we will be hosting a Q&A session. Furthermore, certain statements made during today's event may be considered forward-looking statements within the meaning of the Safe Harbor provision of the U.S. Private Securities Litigation Reform Act of 1995. These statements are not guarantees of future performance, are subject to inherent uncertainties and actual results may differ materially. Any forward-looking information relayed on this event speaks only as of this date and the company undertakes no obligation to update information to reflect changed circumstances. Additional information concerning these statements are contained in the Risk Factors and Forward-Looking Statements section of the company's annual report on Form 20-F filed with the SEC on July 13, 2021. Copies of these filings are available from the SEC or from the company's Investor Relations department. I'd like to now turn the call over to Deep to begin today's webinar.

Thank you, Jonathan. Welcome everyone to our first quarter earnings call for the new fiscal year. I would like to start by wishing all our listeners good health as the world continues to manage through the ongoing COVID-19 pandemic. As shared on our previous call, in late May, India was hit by a massive second wave of new infections during the reported quarter. The second wave started in late March 2021 and peaked in early May with more than 400,000 new cases a day. Fortunately, the situation has significantly improved over the last month or so, with weekly average infections now trending at about 40,000 new cases a day. While this number is still high in absolute terms, it is only roughly a tenth of the peak rate seen in the reported quarter. More encouragingly, the percentage of our population partly or fully vaccinated has also doubled since early May. Today, more than a quarter of the country, or over 346 million people, have been partially vaccinated, and over 95 million people are now fully vaccinated. This has significantly helped lower the seven-day average of daily recorded deaths to less than a thousand per day, down from a peak of nearly 4,200 per day in late May. Recently our Central Government ordered another 600 million vaccine doses and is targeting to have 940 million adults vaccinated by the end of this calendar year. While social distancing, masking, and restrictions on movement during the second wave have helped to bring down new daily infections, we believe once more of the population gets vaccinated, life and travel will gradually return to normal, as exemplified by the experience of countries with high vaccination rates. While the disruptions from the pandemic have been unprecedented, it has helped accelerate the shift toward online shopping across India during the last few quarters as e-commerce users reached over 250 million so far. According to a report published by Worldpay FIS, the e-commerce industry has substantial room for further growth and can reach over $110 billion by 2024. Though the travel industry has been significantly dented by the pandemic, our long-term view is that the inherent need for people to experience the world and travel hasn't changed. Our views are being validated by the pent-up demand seen within the leisure segment as restrictions are lifted. We witnessed this demand after the first wave’s impact ended and are likely to see a similar pattern play out as the recovery from the second wave continues to unfold. It's fair to say that our operating results this past quarter fared far better than the same quarter a year ago, when our entire nation was forced to shut down in April and May of 2020, helping to further the industry's hope for a faster recovery. Ongoing vaccination, sensible and targeted movement restrictions, and higher lockdown fatigue will drive travel demand going forward. In anticipation of recovery post the second wave, the Ministry of Civil Aviation has also increased airlines' loan capacity to 65%, which hopefully should continue to ramp up as the demand situation improves. Similarly, more than 90% of chain hotels and over 80% of top independent hotels are now fully opened for bookings. Lastly, during the second wave, we were fortunate enough to have an established pandemic playbook to help us weather the current bout of virus-induced volatility with minimal operating cash burn during a highly challenging operating environment in the reported quarter. The good news is that we believe that the worst of the second wave may be behind us, evidenced by the improving week-on-week travel demand seen across our business since early July. With increased vaccination rates, we believe that domestic travel demand will continue to recover in the coming months, and online users will use the MakeMyTrip group of brands to plan and book their much-needed and desired post-pandemic trips. We're also encouraged to see our governments recently announce support for the travel industry by providing financial assistance to multiple tourism stakeholders in the form of working capital and personal loans. Furthermore, the European Union has also recently accepted the use of Indian-made vaccines for travel to 16 countries within the region as part of the Green Pass program. Countries allowing fully vaccinated Indian travelers to forgo quarantine requirements include France, Austria, Switzerland, Germany, Iceland, and 11 more. We anticipate that over time, more countries will once again open their borders to our travelers, which will help us gradually recover bookings for outbound travel services. With that, I'd like to hand the call over to Rajesh to share some more color on our fiscal first quarter.

Thank you, Deep, and hello everyone. I hope you and your loved ones are safe and healthy during this ongoing pandemic. As Deep has mentioned, the progression of the virus during much of Fiscal Q1 posed challenges. However, the impact on our business this past quarter, while significant, was not nearly as severe compared to the same quarter a year ago. This improvement was due to the country's ability to handle the substantial second wave without implementing a total nationwide lockdown, opting instead for a more localized and nuanced approach. Most transport services and hotel properties remained available, even with greatly reduced service levels during the hardest-hit month of May. Throughout the quarter, we continued to adapt to changing travel restrictions and focused on long-term projects while tightly managing operating costs to minimize quarterly cash burn. While we lost some business momentum from the post-first wave during Q1, our performance compared favorably year-on-year. We recorded over 2.8 times the volume in our air ticketing segment, nearly 11 times in room nights from our hotels and packages business, and nearly 10 times in our bus ticketing volumes. This performance benefited from essential travel continuing despite restrictions, whereas leisure and business travel were more significantly affected. Importantly, while we faced adjusted operating losses this quarter due to dramatically reduced demand from the second wave, we managed to limit our cash losses to less than $5 million by effectively controlling our variable costs. Our business tracked the new case numbers across the country, with volumes starting to decline from late March into April, followed by a steep drop-off in May, and beginning to recover in late June. The encouraging news is that we observed continued recovery momentum in the first weeks of July, with daily flown passengers in our domestic air ticketing business reaching 40% of the January 2020 levels, and nearly 50% recovery on a book basis. A similar pattern of demand was seen in our domestic hotels business, where average daily room nights hit bottom in May, followed by sharp recovery month-on-month in June and into July, achieving roughly 50% recovery to pre-pandemic levels so far. Our bus ticketing business followed a similar demand pattern, recovering nearly 35% of pre-COVID levels in July to date. With case numbers under control and vaccinations increasing, we are optimistic that any potential third wave would be less severe and that the recovery trend seen in July will persist. Now, let me provide some insights into the progress and trends across our lines of business. In the reported quarter, starting with hotels and packages, we are pleased to report that over 70% of the room capacity in our domestic hotel network was open for bookings by the end of the quarter. Our hotel partners are eager to achieve high occupancy rates by offering attractive rates to customers. The ongoing recovery since June has been particularly strong among premium hotels, allowing us to grow our share with these partners to exceed even pre-pandemic levels in July. Across most major chain hotels, we recorded greater volumes in the first half of July compared to the same period before the pandemic. During the second wave, our team focused on projects to enhance the customer experience with our brand, such as adding more relevant reviews for family travel and improving our points of interest databases to facilitate refined searches, along with optimizing our cancellation policies to meet current needs. We also launched a Request To Book feature for alternative accommodations, enabling hosts to connect with potential guests before confirming bookings. Alongside improving user experiences for shoppers and suppliers, we added new distribution channels to cater to various customer segments. The MyPartner initiative for B2B demand has onboarded over 13,000 partners. Additionally, our SME-focused myBiz channel and the quest to travel corporate platform with convenient business travel booking solutions continue to expand with new accounts. Now, let me share highlights from our air ticketing business. The market's recovery in passenger volume now stands at 36% compared to pre-pandemic January 2020 levels, an increase from the 15% recovery seen in May. In the first two weeks of July, the number of passengers flown across our brands reached 40% of pre-pandemic levels, significantly up from 18% in May and 26% in June. On a book basis, we achieved nearly 49% of our pre-pandemic daily segments in the initial weeks of July. During Q1, our flight teams also adapted and rolled out new products to assist travelers amid the changes of the second wave. For instance, we made adjustments to accommodate bookings for customers missing last names on our Goibibo brand and enhanced personalization on our listings to boost conversion rates. As international travel gradually opens up to Indian travelers, we introduced a destination advisor to help users find suitable destinations based on popularity, pricing, flight durations, as well as COVID and visa requirements. We also created a comprehensive view of various countries and their respective COVID requirements to facilitate trip planning. Now let me provide an update on our bus ticketing business. We have restored over 50% of our inventories. In July, we are experiencing about 33% daily peak recovery, reflecting strong recovery momentum since June. Despite being affected by the second wave, regions like Western and Northern India have recovered faster than the Southern and Eastern regions that experienced the second wave later. Our previously announced program for top bus operators called Primo has gained traction, improving customer satisfaction among passengers traveling on these services. We also launched redBus resources to assist new operators on our platform with onboarding and leveraging available online tools to drive better occupancy and increased business volumes. Moving on to our other ground transportation services, which include cabs and train ticketing, the volume of cab rides in Q1 was approximately a quarter of pre-pandemic levels, and rail ticketing was about a third of the pre-pandemic averages. The good news is that this profitable business has shown strong recovery in the first week of July compared to pre-pandemic levels, with nearly half the recovery for cabs and over three-quarters recovery for rail. During the quarter, we introduced our cab service within the corporate myBiz channel, adding functionalities tailored to corporate customers, including specific cab options and an improved approval process. Now I want to share trends in our corporate business, which was significantly affected by the second wave in Q1, leading to a recovery drop to 16% for myBiz and 8% for Q2T compared to pre-pandemic. However, we have seen sectors such as pharma, healthcare, real estate, and biotech approaching nearly 100% recovery of their pre-COVID travel levels since Q1 and into July, with utilities and essential services not far behind. Overall, in July, we've seen over 50% recovery for myBiz hotel room nights and nearly full recovery in Q2T. When compared to pre-pandemic levels, we anticipate about 53% recovery of active accounts on our platform and expect nearly a complete recovery in conversions. Despite the severe impact of the second wave in Q1, we successfully onboarded 60 new mid-sized and large accounts and approximately 274 SME accounts while renewing all annual agreements with large enterprises due in Q1. Now, I'd like to hand the call over to Mohit to discuss our financial results in Q1.

Thanks, Rajesh. And I hope all our listeners are staying safe and healthy. As the reported quarter was hit by the second severe wave of the pandemic, we strengthened the business recovery achieved over the last fiscal year. We focused on minimizing operational cash burn during the quarter while trying to grow year-on-year over Q1 of last year, which saw the first wave of the pandemic. As a result, our quarterly adjusted operating losses were less than $9 million compared with losses of over $21 million during Q1 of last year. Adding back non-cash depreciation and amortization expenses, the adjusted cash operating losses were less than $5 million during the quarter compared to losses of over $16 million in Q1 of last year. While we are encouraged by the business recovery seen so far in July, we shall remain focused on operating cost optimization, particularly until the time that the industry fully recovers from the pandemic. During the reported quarter, our gross bookings increased by over 330% year-on-year in constant currency terms, but due to the second wave, it was down by over 60% on a quarter-on-quarter basis. Moving onto our business segment, air ticketing adjusted margin stood at $19.2 million, representing an increase of almost 4.5 times the level achieved in the same quarter a year ago, but lower by half on a quarter-on-quarter basis in constant currency terms. While strong market share in the domestic air ticketing business continued to help us as this part of the business has shown more resilience compared to other travel and services, particularly in the period severely hit by the pandemic wave. The adjusted margin for our hotels and packages business stood at $12.3 million in Q1 which is nearly ten times the adjusted margin in the same quarter a year ago but lowered by nearly two-thirds on a quarter-on-quarter basis in constant currency terms. As for our bus ticketing business, adjusted margin stood at over $3.9 million, and represented nearly 12 times improvement from the year-ago level of Q1 in the last year but down nearly two-thirds as compared to the previous reported quarter in constant currency terms. Lastly, the adjusted margin in other businesses was $2.5 million, representing a year-on-year improvement recovery of nearly 2.2 times but just less than half the levels achieved in the previous reported quarter in constant currency terms. Let me now share some details around operating costs and profitability during the reported quarter, where we continue to sharply focus on fixed cost discipline and optimizing marketing efforts amid the second wave. I will begin by addressing our variable expenses, which is largely comprised of marketing and sales promotion. Before entering the fiscal first quarter, with rising confirmed new cases of COVID-19, we quickly scaled back on planned marketing campaigns which were intended to stimulate demand during the peak summer travel season based on recovery seen in the previous few quarters. As a result, these expenses could be curtailed and stood at about 4.4% of gross bookings, an improvement even from the prior reported quarter’s spending of 4.8 percentage points of gross bookings. As for our fixed costs, our registered personnel and SG&A expenses came in at about $28 million compared to about $33.3 million in the previous quarter. This was largely achieved by flexing our variable outsourcing expenses to reflect lower customer servicing volumes during Q1. Lastly, while we are focused on tight cost management and remain cautious of a potential third wave, we believe with increased levels of vaccination and the medical infrastructure created post the learning from the second wave, we are past the worst of the pandemic and headed for a better time for the travel industry in the forthcoming quarter. With that, I'd like to turn the call back to Jon.

Thanks, Mohit. And audience, if you have any questions for the management team, please use the raise your hand button, and we will commence with the Q&A. The first question comes from Gaurav Rateria from Morgan Stanley. Gaurav, please unmute yourself and ask your question.

Hi, am I audible?

Yes, Gaurav.

Hi, good show in a tough and challenging quarter. So, my first question is on the cash flow, because if I look at the last year's same quarter, the cash flow performance was very, very different. There was a huge working capital release, and there was a positive operating cash flow but this quarter we have seen a working capital locking of around $24 million to $25 million and the operating cash flow is quite negative number. So, just trying to understand what really changed and how should we contextualize this quarter versus the last year's same quarter when the pandemic hit us in the country?

So, Gaurav, maybe I can take that. If you see last quarter, pretty much right until the end of the quarter, the business was completely down and recovery pretty much started only from the second quarter onwards. As we said, June was a comparatively better month within the reported quarter and therefore business recovery had started happening to some extent from June itself. And therefore, in that manner of thought, these are not really like-for-like kind of linked quarters. Right through the pandemic, there have been a significant amount of changes to the working capital cycle depending upon the kind of recovery or setbacks as you have seen on the business side. So that will be a little difficult to compare between this quarter versus the same quarter a year ago.

Okay. And second question is on the competitive intensity in each of the segments, any color on what's changed in the last couple of months or maybe things are stable? Any color on that will be very helpful, especially on the air and hotel and packages segment?

Yes. Hi Gaurav, this is a good question, maybe I can take that. Well, I think it will be fair to say that nothing significant here to call out which is materially different from what it was in the last quarter or in the last few months. The market remains the same. From our point of view, we continue to sort of incrementally keep gaining our market share on the domestic flight side, while there could be other players who are also trying to maybe be a little bit more aggressive on discounting, et cetera, but from our point of view, we are holding onto improving our market share. And yes, so in terms of just for the whole year, as you know, Cleartrip has been acquired by Flipkart. We haven't really seen any action on that front from their side as well. So all in all, as far as the air segment is concerned, no real change in what the situation has been in the past. As far as hotels are concerned, again, no significant change at all, as the global hotels continue to be, given the fact there is no international travel that has opened up, continue to operate at the same sort of levels. No massive actions, I'm sure that are all focused on their respective markets as well. And in the Indian market from an intermediary standpoint, we are clearly leading the pack out there as well. So again, it's a very stable situation, if you will, from a competitive landscape standpoint.

And last question from me, on the regulation side, any color on the recent draft regulations which came out from Consumer Affairs, Ministry and how to think about the impact on the business? Also, there have been some news flow around the CCI putting obligations around budget hotel players back on the platform. So on the regulation side, any color will be helpful.

Maybe on the draft rules first, and the rules are draft, and we all sort of got together as pretty much every industry player in the e-commerce space and drafted our representations through various industry forums that have sent our feedback and inputs to the Ministry. I am just basically explaining the rationale behind all the inputs in the recommendation. It will be fair to say typically in draft rules, you will find gaps. The good news is that the industry is being consulted right now, and the fact that we’ve also sort of got together and given our representation back means that we are actively engaged in terms of our participation in this along with the other industry players in the forum and going back to the Ministry and representing back. We will keep everyone posted on how things evolve there. As far as Mohit, do you want to take that CCI question?

Yes sure, Gaurav, could you just repeat it once more?

Yes, there was some news flow around the CCI putting an obligation to put budget hotel operators back on the platform, which were not there earlier. So, any color on that if that has changed anything on the business side for us?

Yes, sure. The CCI actually kind of recently and the Honourable Commission has passed a consent order. Essentially, all parties concerned need to work together, and therefore, they have passed a consent order which mandates that those budget hotel operators who were not on the platform previously need to be reinitiated, and we are on that process. Hopefully, we'll share more as the process culminates, but we are on it, and like I said, this is a consent order and therefore it is coming with the active consent of MakeMyTrip as well.

The next question comes from Ashwin Mehta of Ambit.

Hi. Can you hear me?

Yes, Ash.

So congrats on a good set of numbers. One question; in terms of net revenue margins this quarter, what drove the increases in the hotels and the air ticketing piece? Because hotels, it seems is still being driven by the more premium hotels. And secondly, if you can give some indication in terms of the sustainability going forward for that?

Sure, Ashwin, maybe I’ll take that. As you can imagine, this was a quarter really hit by the second wave of the pandemic, and we have seen when the market demand appetite is extremely low, we usually find suppliers willing to put in a bit more in terms of margins to try and drive volumes. This is exactly what we’ve seen play out during the reported quarter. As we’ve called out in the past, we believe our margins are largely stable. Best estimated, you could always have slight increases or decreases depending upon the specific quarter. Overall, like we had called out, our hotel margins were around the 17%, 16%, 18% level in the last few quarters, but that was also because there was a significant mix of premium that was getting sold. That has started correcting—course correcting over a period of time. I would not be surprised, particularly on the hotel side, if the margins continue to remain strong, more on the higher side of the 17% to 20% range rather than necessarily being on the lower side. So I think a little bit tactical for the quarter and, to some extent, a part of the mix kind of gradually addressing itself.

Fair enough. And just one more. If I look at the domestic passenger data given by DGCA, there was a 53% sequential decline. But in our case, there’s almost a 62% decline in our Flight segment. So anything in terms of the higher competitive intensity on the air side because there are quite a few players, which are pure air in terms of their exposures. So it would be good to get a sense in terms of that, because some of them are playing on that new convenience fee and even IRCTC seems to have launched something with a lower convenience fee.

Maybe I can take that also. Usually, the gap largely comes in due to the manner that the data gets reported. The DGCA data would be based on tax traveled during the period, whereas our numbers will be based on packs booked during the period. Therefore, there is generally a gap between the two sets. Overall, we keep giving our share, our market share in the domestic market. Like Rajesh had called out, our market share has remained strong. It hasn’t diluted; it’s only been improving over the year. So therefore, it’s not that we have lost share. This might be more a gap in the manner that the data has called out by the DGCA or the manner in which we report, which is based on bookings.

Okay. Fair enough. And the other part in terms of the competitive intensity there and any impacts or any changes that you have seen in terms of strategy from, say, Cleartrip, which has now been acquired by Flipkart?

So Ashwin, maybe I can take that. Nothing specific from the Cleartrip side yet. It’s the same as we’ve been seeing in the last few months or what we saw in the last quarter. Even the other players are experiencing similar dynamics. There is some discounting in this segment in the market that has been continuing for a while. Let’s see how it goes. At some point, as the market gets a little more consolidated, it should get rationalized going forward as well.

Thanks, Rajesh. Thanks, Mohit. All the best for the future quarter.

Thanks, Ashwin.

Next question comes from Rishit Parikh from Nomura Securities. Rishit, go ahead with your question.

Hi guys. Thank you for taking my question. Congrats on a decent quarter, yes. So I’ve got two questions. One, I think we’ve seen some of the discounting come back again on the website, right? So I just wanted to understand your views: is it largely driven by the hotels and the partners, or are we also equally participating to that extent? And how should we think of profitability for the next quarter onwards? That’s the first. And second, if you could just provide a little more color on the corporate segment, what are we essentially trying to do there? How many corporates or SMEs have we onboarded? Because that’s one area where I think the competition could comparatively not be focusing. What are we adding in terms of value that can help us gain significant market share once the recovery comes through? Thank you.

So let me just maybe take both of them. Rishit, both are good questions. So the first one, the answer to your question and your observation is that, yes, it’s predominantly coming from the partners. Just to make sure that if you would recall, we had called it out earlier as well. There are now tools and features available for the partners that they can decide on the go, depending on how much they want to do, what is their focus area, could they want to drive yields from their point of view, or all the occupancy from their point of view. They keep coming up with different promotions and offers depending on how they see the demand moving. Yet, we do provide a lot of market intelligence in terms of how the demand is moving and the variability of or the volatility of demand based on different price points, etc. Therefore, a large part of the sales promotion or the offers that you see would be driven by the partners, leveraging our platform for sure. We haven’t really seen our own margin getting diluted because of that. I ask you to keep in mind that during the difficult quarter, as we were just going through the second wave of the pandemic, the focus is much more on occupancy, and there is definitely more desire to invest more money into the market to capture the latent demand. On the corporate side, we’ve been focusing, and we believe that’s a very important area. We identified this two, two and a half years ago when we started making investments and we’ve been continuously improving the product experience. In fact, both in terms of improving or enhancing the experience from a booker standpoint—whether it’s a traveler or an assistant or admin in an organization—we see what their specific needs are in making the booking experience seamless. On the second side, we’ve also been expanding the product portfolio. As I called out in the script earlier, we’ve now added a cab product as well. Additionally, we have flights and hotels for domestic international flights and we’ve now added cabs and rail, with other products in the pipeline. We believe this creates a one-stop shop for business travelers—whether SMEs or large corporates catered to by our platform Quest2Travel. We continue to focus on acquiring customers, and in the last quarter, we acquired close to about 250 to 260 accounts of SMEs and about 60 large and upper-end mid-sized accounts. Every quarter, similar acquisition trends have been happening. We believe these investments will pay dividends in future quarters.

Rishit, maybe just to add on to what Rajesh has already said and addressing some other parts of your question. Our own spend—typically, our marketing and promotional spends have actually decreased as a percentage of gross bookings on a quarter-on-quarter basis. So compared to about 4.8% in the previous quarter, these expenses stood at about 4.4% in the current quarter. We have not been deploying significantly from our end, and we will only start seeing significant amounts of recovery coming through, not necessarily when the recovery is being dented. I just wanted to note that. Secondly, while the significant impact on business recovery has gone into the high 50s, and exiting months of the previous reported quarter, we had gotten into about 60s and 70s in terms of domestic recovery, this quarter has seen recovery only in the high teens. Despite the significant dent on volumes, our adjusted cash burn was under $5 million which means, as we start to see a recovery, we should be back on the path to profitability. This quarter is more like an aberration due to the significant impact from the second wave.

Understood. That was helpful. Rajesh, just one follow-up on that question. How many SMEs or large accounts would have onboarded by now? And what is the market size like that we would aim to get there?

Well, Rishit, good question again. So maybe I’ll just follow up with the actual numbers. Jonathan, would you have that handy with you?

Yes. So Rishit, for Q2T, kind of large corporate enterprise, about 100 accounts have been onboarded so far. For our myBiz program, about 1,000 key accounts, close to 5,000 small medium enterprises have already logged in. For smaller business, it's about 10,000 already onboarded. So our last question comes from Amol Desai from LatticeWork Investments. Amol, please go ahead and ask your question. Amol, you are on mute.

Amol, you are still on mute.

If there’s anyone else in the queue, you could help them up.

Yes. The next question comes from Citi, Vijit Jain. Vijit, please ask your question.

Yes, hi. Sure. Can you hear me?

Yes.

So, yes, my question, I have two questions. One is on the domestic air travel business. Could you give a sense of what your current market share would be? I know last quarter you mentioned a number of mismatches between how DGCA reports and given the small scale of the overall flight business, it might be a little color. But just a sense on what your market share currently would be in the domestic aviation business? And my second question is looking at some of the other competition you have in the Air space, that have raised funds recently and are looking to maybe get more aggressive in the market post-fund raise. So how do you look about the competitive dynamics, at least in the Air space going forward from that perspective?

Sure. Vijit, maybe I can take that. Our market share is close to about 30% of the total market right now. I can also clarify the earlier question on the comments from our side as well. In terms of flown traffic, how market flown passengers have been growing, we track those numbers. For example, in June, the flown passengers market was about 23% recovery, about 95 million flown passengers. From July 1 to 4, for example, it was about 36%. Subsequently, in the last few days of July, it has only been increasing and has gone to about 50%, 55% as well. Average daily departures have been increasing month-on-month from May onwards—29%. In June, it was 33%, and July 1 was about 44%. Our recovery on flown passengers has been ahead of the market. The market was recovering at 36% on flown and we were at 41% like-for-like for the first four days of July. Similarly, for June, while market was at 23%, we were at 26%. This is more like an absolute like-to-like comparison to avoid confusion. I've already shared the market share number broadly as well.

Yes. And sorry, the second part of my question is about competition. Several competitors in the Air space have raised funds in recent times, right? How do you see the overall competitive dynamic evolving from here? I guess—and do you see bookings making more active interest in the domestic business? I know booking is dominant in India inbound, but do you see them making a more concerted effort in the domestic hotel market as well? Thank you. Those are my questions.

Vijit, I think through the pandemic, what we have noticed—and this has also been shared with us by hotel partners—is that most of the multinationals have not been active. Their business is largely inbound. With inbound completely drying up, even till today, no foreigner can actually come back to India, even if vaccinated. Because of that, I think business has been muted and development efforts on the ground have been limited. Not to say that they’re not doing anything on domestic, we do track those numbers carefully, and they are much smaller than they used to be. We have taken this opportunity to double down on domestic travel which was coming back. This has been squarely a forte of ours. It was a desperate need for our hotel partners, as their fixed costs are much higher. Those partners willing to take risks, open their hotels either entirely or partially, we were able to work closely with them to bring forth deals meeting market demand. I would extend this beyond hotels. Alternate accommodations have been a silver lining where many people who hitherto would not have looked at alternate accommodations realized this was the safest option, and started searching for such opportunities. Therefore, we contracted many more, now close to 30,000 contracted independent properties. This has been strategic and opportunistic, and I think it’s worked out well.

Great. And just one final question from my side. Any updates you can give me on the ad business and on the TripMoney business and how you look at it in the current fiscal year? What do you expect from those verticals? Thank you.

Sure. Vijit, while it’s quite early days for both, these have been rolled out in a meaningful fashion in the last quarter or two, but they are promising from a long-term view. Right now, our focus on the ad tech platform has been just to enhance capacity to add sponsored listings. We’ve also started doing partner-side advertisement. In terms of numbers, we’ll share more as it becomes meaningful. It’s just been a humble beginning, but there’s promise. As for TripMoney, the same applies. The focus is to add more products. We recently added more insurance products. Bringing in credit cards and potentially foreign exchange as international travel opens may also be items on the agenda. Our idea for that platform is to offer travel-related products but also to structure it in a way that it functions autonomously—adding financial services. We are focused on the long term here, investing in capabilities now, and as we become more significant, we’ll share more.

Thank you so much. Those were my questions. Appreciate your time. Thank you.

Thanks, Vijit. Well, thank you, everybody, for joining our call today. If you have any questions for us or the team, please feel free to reach out directly. And I wish you all a very nice day. You may now disconnect. Thank you.

Thank you.

Thank you, everyone.