MakeMyTrip Limited (NASDAQ:MMYT) Q2 2020 Earnings Conference Call Transcript
Nov 04, 2019 • 07:30 am ET
Good morning, ladies and gentlemen, and welcome to the MakeMyTrip Limited Fiscal 2020 Q2 Earnings Conference Call. [Operator Instructions]
I would now like to turn the conference over to your host, Mr. Jonathan Huang, Vice President of Investor Relations.
Thank you, Crystal. Greetings and welcome to MakeMyTrip Limited's fiscal 2020 second quarter earnings call. I would like to remind everyone that certain statements made on today's call are considered forward-looking statements within the meaning of the safe harbor provision of the US Private Securities Litigation Reform Act of 1995. These statements are not guarantees of future performance and are subject to inherent uncertainties and actual results may differ materially. Any forward-looking information relayed on this call speaks only as of the date and the company undertakes no obligation to update information to reflect changed circumstances.
Additional information concerning these statements are contained at risk factors and forward-looking statements section of the company's annual report on Form 20-F filed with the SEC on July 23rd, 2019. Copies of these filings are available from the SEC or from the company's Investor Relations department.
Today, we are joined by Deep Kalra, MakeMyTrip's Founder, Chairman and Group CEO; Rajesh Magow, Co-Founder and CEO, India; and Mohit Kabra, MakeMyTrip's Group CFO.
Now let me turn the call over to Deep to begin today's discussion.
Thanks, Jonathan and welcome everyone to our second quarter earnings call for fiscal 2020. I'd like to begin by sharing a quick summary of the operating environment in India. During our last call, we pointed out the impact of the slowing economy and stickable [Phonetic] disruptions in the travel industry we had on our results. We also believe that the operating cash flows from Q1 would continue into the seasonally slow second fiscal quarter while near term growth challenges but we remain optimistic of our long-term growth opportunities.
It's definitely worth noting that despite a slowdown, India's GDP remains among the highest in the world and growth is expected to reaccelerate in 2020 for recent IMF forecasts. India's fast economic growth combined with a large and growing young online population gives us confidence in our long-term growth prospects as the headroom to shift the travel market online remains very large today. More encouragingly, our government is also demonstrated willingness to support travel and tourism as a means to drive economic growth. Recent cuts to the GST, goods and services tax on hotels which took effect on October 1st, was a welcome move and should have positive impact on growth in times to come.
In addition, the unexpected corporate tax cut was intended to improve business sentiment which should help drive overall economic growth as investments from the corporate sector pickup once tax benefits begin to reflect on balance sheet. At the same time, the government's Incredible India 2.0 Marketing campaign should help drive greater awareness for travel and tourism in India.
On the airline supply front, we anticipate that the lost seat capacity due to Jet Airways grounding has largely been restored