Mahindra Holidays’ stocks jumped on a stellar Q3 and profits saw a healthy uptick. Bloomberg TV India gets the highlights on the quarter gone by with Kavinder Singh, Managing Director and CEO, Mahindra Holidays.

You have seen strong growth in profitably and revenues. What does it indicate? Is the business robust and looking up?

We grew our income by about 15 per cent and we are now at about ₹241 crore. As far as our profitability is concerned we improved our profit before tax margin from 16 per cent to 20 per cent if you take the same period last year. We also increased our profit after tax to about 33 per cent and the profit after tax is at about ₹31 crore.

What worked for us is the member addition, they continue to remain strong. We are at about 32 per cent growth if you were to take the same period last year. And also more importantly we are focused on sourcing our customers through digital as well as referrals and that has helped. 53 per cent of our sales have come from the referrals and the digital root. Our efforts to connect with our members through our heart-to-heart program are also yielding results in terms of increased referrals.

You spoke about the member additions. But the fact is that the numbers have ebbed. Why?

As far as member addition in terms of the levels is concerned we are actually on a sequential basis at similar levels. The percentage differences that you see are due to the base effect and really no concerns in terms of member additions.

What is your average realisation per member?

Our average realisation per new member has actually shown an improvement if you were to see sequentially and we are back to the Q1 levels at round about ₹3.42 lakh.

Your vacation ownership revenue has receded quarter-on-quarter. Take us through the overall outlook, given this landscape.

We have various streams of income. As you rightly pointed out we have vacation ownership income, we have resorts income, we have subscription fee income. The vacation ownership income as well as the annual subscription fee income are growing at about 8 to 9 per cent if you were to take the same period last year and if you were to take the resorts income it went up by about 26 per cent.

On an overall basis, the income grew by about 15 per cent and if you were to take the nine months results our income growth is about 18 per cent with the profit after tax growth at 24 per cent.