Mahindra Holidays & Resorts India Ltd.’s sales rose 24 percent in the January-March quarter over the year-ago period as more people signed up as members.
The sales for the quarter stood at Rs 310.50 crore, beating the Bloomberg analysts’ consensus estimate of Rs 245.5 crore, on the back of a 27 percent increase in the new members, a press release quoted Kavinder Singh, the company’s managing director and chief operating officer, as saying.
“The company added 6,177 members and reached a record occupancy rate of 85 percent, making it the best-ever quarter for our cumulative member base. In the coming quarters, as we increase our properties, one can only expect that number to go up significantly,” said Singh.
Net profit, however, grew marginally by 4.5 percent to Rs 31.8 crore. “Profits were set off by a one-time provisioning of Rs 21 crore for expected credit loss as the company moved to Indian Accounting Standards Rules, 2015 (Ind-AS),” said S Vasant Krishnan, chief financial officer, Mahindra Holidays and Resorts India.
The company’s earnings before interest, tax, depreciation and amortisation remained flat at Rs 59.16 crore while margins contracted 5 percentage points year-on-year. Its expenses also swelled 30 percent to Rs 266.13 crore with the share of ‘other expenses’ rising the most.
Mahindra Holidays also decided to issue one bonus share each for two fully paid shares to its shareholders, allowing them to capitalise Rs 44.4 crore of the total reserves held by the company.
The company also completed 95 percent acquisition of Holiday Club Resorts, Oy, Finland which operates 49 resorts across India and abroad. The remaining shares, the company’s CFO said, will remain dormant with the management.
Singh, in a conversation with BloombergQuint, said that the company is keen to expand in north-eastern India, Western Europe and Southeast Asia. “In the coming years, the company will invest around Rs 600 crore to open four new resorts,” he said.