Mahindra Holidays and Resorts posts 30.7% dip in Q2 profit

Mahindra Holidays and Resorts India Ltd reported 30.7 per cent dip in profit after tax for the second quarter ended September 30, 2022.

On a consolidated basis, the company reported a net profit of ₹4,1.39 crore during the quarter under review, compared to ₹59.76 crore in Q2 FY22 and ₹29.82 crore in Q1FY23. The company reported net sales of ₹598.36 crore compared to ₹546.39 crore in Q2FY22 and ₹604.85 crore in Q1FY23, representing a YoY growth of 9.51 per cent and QoQ dip in growth of 1.07 per cent. The company’s total Income increased to ₹627.2 crore (₹593.3 crore) an increase of 5.7 per cent. 

Total expenses

On a consolidated basis, the company’s total expenses touched ₹574.65 crore compared to ₹515.12 crore reported in the year-ago quarter and on a standalone basis the net expenses touched ₹260.09 crore (₹210.34 crore).

Mahindra Holidays & Resorts offers quality family holidays primarily through vacation ownership memberships. While Club Mahindra is the flagship brand with a 25-year membership, the other products offered by the company are – Bliss, Go Zest, Club Mahindra Fundays and Svaastha Spa.

As on September 30, 2022, MHRIL has 86 resorts across India and abroad and its subsidiary, Holiday Club Resorts Oy (HCR), Finland, a leading vacation ownership company in Europe, has 33 timeshare destinations with 9 spa resorts across Finland, Sweden and Spain.

Commenting on the performance, Kavinder Singh, Managing Director and Chief Executive Officer, Mahindra Holidays & Resorts India Ltd, said, “Acceleration in room inventory and growth in member additions is reflected in the strong performance with highest ever Q2 total income, EBITDA and PBT. We are focused on providing high quality immersive experiences for our member families, now at ~2,75,000, and are confident of our core value proposition of vacation ownership which allows us to monetise the full potential of our growing member base.”

European operations

Commenting on European operations, he added, “Despite the adverse effects of the Russia-Ukraine war which affected consumer sentiment and had an unprecedented inflationary impact leading to rise in input costs, Holiday Club Resorts (HCR) has delivered an impressive Q2 performance as is seen by the strong Revenue growth in timeshare by 12 per cent YoY and Spa Hotels by 16 per cent YoY, along with delivery of operating and net profits.

HCroreSpa Hotels achieved 70 per cent occupancy during the quarter, better than the local hotel industry, reflecting the strong brand equity that Holiday Club Resorts enjoys. Travel sentiment continued to be buoyant for domestic Finnish travellers during the summer season.”

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