MakeMyTrip Limited (NASDAQ:MMYT) Q1 2021 Earnings Conference Call - Final Transcript

Aug 21, 2020 • 07:30 am ET


MakeMyTrip Limited (NASDAQ:MMYT) Q1 2021 Earnings Conference Call - Final Transcript


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Ladies and gentlemen, thank you for standing by and welcome to the MakeMyTrip Q1 Fiscal 2021 Earnings Call. [Operator Instructions] Please be advised that today's call is being recorded. [Operator Instructions]

I would now like to hand the call over to Jonathan Huang, Vice President, Investor Relations. Please go ahead.

Jonathan Huang

Thank you, and welcome everyone to MakeMyTrip Limited fiscal 2021 first 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 provisions 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 call speaks only as of this date and the company undertakes no obligation to update the information to reflect changed circumstances. Additional information concerning these statements are contained in the Risk Factors and Forward-Looking Statement section of the company's Annual Report on Form 20-F filed with the SEC on August 17, 2020. Copies of these filings are available from the SEC or from the company's Investor Relations department. I'm joined today by Deep Kalra, MakeMyTrip's Founder and Group Executive Chairman; Rajesh Magow, Co-Founder and Group CEO; and Mohit Kabra, our Group CFO.

Let me now turn the call over to Deep to begin today's discussion.

Deep Kalra

Thank you Jon. Welcome all. I hope everyone listening is staying safe and healthy during the ongoing global pandemic. Today, I'd like to share some of the actions we continue to take during these difficult times to ensure we remain in a position of strength to weather through this storm and begin our journey of recovery with a better financial trajectory than in recent past. Since our last earnings call, we have begun to see some early signs of recovery within our domestic travel business. As a reminder, while domestic flights were allowed to resume from May 25th albeit to a certain amount, most other travel services were significantly impacted throughout the reported quarter. As a result, our fiscal first quarter's performance reflected the bulk of the impact that the lockdown had on our business.

During the quarter, we took painful but necessary fixed cost reductions and fully flexed our variable costs to ensure we have ample liquidity to re-emerge stronger competitively. In addition, we have secured additional financings which Mohit will discuss later to further bolster our balance sheet. We've also maintained strong cost discipline to manage our quarterly cash flow usage going forward. These actions will allow us to manage our quarterly cash burn despite a material hit to our top line numbers. Lastly, we continue to invest in our technology platform for the long-term to ensure we have the opportunity to serve customers' needs via online channels even better going forward and achieve operational cost efficiencies through greater automation.

Recent developments of travel opening up gradually makes us believe that the worst of the pandemic impact might be behind