These aren't good days to be rooting for the rupee.
India's monetary currency has taken a beating over the past year, a fact that's readily evident in yesterday's report from MakeMyTrip
India's leading travel portal posted reasonably healthy results in its latest quarter, though exactly how healthy the report is depends on where you stand in the currency translation.
In its own denomination, revenue soared 67%. However, for stateside investors, MakeMyTrip's ascent to $47 million is only a 50% pop. If we back out the service costs related to bookings -- as analysts prefer to do -- MakeMyTrip's revenue grew just 30% to $22.1 million (as opposed to a 44% uptick in rupees).
At the end of the day, this is still a strong top-line boost. Adjusted earnings nearly tripled to $3 million, or a better-than-expected $0.08 a share. The market still wasn't impressed, sending the stock nearly 8% lower on the report.
MakeMyTrip is definitely one of the faster growing travel website operators out there.
Investors shouldn't interpret this as a sign that India's now a booming market for Internet companies.
MakeMyTrip is the stronger grower, but is it worth the website operator's nearly $600 million market cap? Fresh guidance calls for revenue (less service costs) growing 30%-32% this year. Is $103 million-$106 million in adjusted revenue enough? The market doesn't seem to think so, but my money's on patient investors realizing that India's long-term outlook is too robust to pass on MakeMyTrip priced in the mid-teens.