Stock Market Tips -After buying Ibibo, Make My Trip is spending more on promotions than its net revenue

Ever since Make My Trip Ltd announced the acquisition of Ibibo Group’s travel business in India last October, the combined entity’s valuation has roughly doubled. The company even raised $330 million from a clutch of investors in May this year. The acquisition created India’s largest online travel firm and investors are betting that the consolidation in the sector will result in reduced cash burn.

But the perceived dominance in the online travel space is missing from MakeMyTrip’s financials. If anything, losses are widening with the company doling out heavy discounts to customers.

In fact, Make My Trip’s marketing and sales promotion expenses were higher than its net revenues, analysts at Nomura Research pointed out in a note to clients. In the June quarter, the firm’s marketing and sales promotion expenses rose to $142.3 million, higher than its net revenues of $141.2 million.

Get the daily HNI Commodity Pack and more click here @ http://www.ripplesadvisory.com @