Online travel portal MakeMyTrip on Friday reported a loss of $338.6 million for the quarter ended March 31, which is eight times more than its loss of $40.4 million reported in the year-ago period.
This includes a one-time increase of 84.2 per cent in other operating expenses at $65.8 million in the quarter, from $35.7 million a year ago, primarily due to a one-time provision for litigations of $30.8 million for a dispute related to a prior acquisition, and a rise in personal cost. Barring these one-time costs, adjusted net loss remained the same at $18.3 million in the quarter ended March 31.
Its revenue in the March quarter fell 12.7 per cent to $104.9 million from the year-ago period.
The company, however, expected the lockdown to have greater impact in the current quarter because it began on March 25, and most travel services were largely shut during April and May.
“As a result, our results of operations for the first quarter of the financial year will reflect the impact of the pandemic on the full quarter,” MakeMyTrip said in a statement.
The company said in the fourth quarter of FY20, as a result of the significant negative impact related to Covid-19 pandemic on the travel industry, and the stock price and market capitalisation, “we concluded that sufficient indicators existed to require us to perform a quantitative assessment of goodwill”.
“Following that assessment, we recorded an impairment charge of our goodwill amounting to $272.2 million, primarily related to our Goibibo business, which we had acquired in FY17,” the company said.