Mahindra Holidays reports over three-fold rise in Q4 net profit on higher occupancies, memberships

Reuters Updated - April 25, 2023 at 05:13 PM.

The Mahindra Holidays consolidated profit after tax stood at ₹56.63 crore for the quarter ended March 31, compared to ₹15.87 crore a year ago 

A view of Club Mahindra property at Manali. The Mahindra group’s hotelier business reported a 31.5 per cent growth in revenue from operations, while expenses rose 19.5 per cent, mainly driven by employee-related expenses as the company hired more people to cater to higher occupancies.

Mahindra Holidays and Resorts India Ltd reported an over three-fold rise in its fourth-quarter net profit on Tuesday, aided by higher occupancies and strong membership growth.

The company's consolidated profit after tax stood at ₹56.63 crore ($6.9 million) for the quarter ended March 31, compared to ₹15.87 crore a year ago, it said in an exchange filing.

The Mahindra group's hotelier business reported a 31.5 per cent growth in revenue from operations, while expenses rose 19.5 per cent, mainly driven by employee-related expenses as the company hired more people to cater to higher occupancies.

Resort occupancies were at 85 per cent in the fourth quarter against 77 per cent, a year ago, while membership sales value rose 33 per cent.

The company also reported its highest-ever quarterly upgrades at ₹55 crore.

Revenue from the company's European segment, which operates under brand name Holiday Club Resorts OY or HCRO, rose 42 per cent, outpacing growth in its other segment MHRIL, also called Club Mahindra.

Companies in the hospitality space, including Mahindra Holidays, have seen a strong post-Covid comeback due to surge in tourists, and occupancy rates have remained at elevated levels.

Shares of the company jumped 5.3 per cent after the results, and closed 3.4 per cent higher.

Published on April 25, 2023 11:43

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