Mahindra Holidays & Resorts Q2 PAT dips 30 pc to Rs 41.39 cr on higher expenses

Mahindra Holidays & Resorts India Ltd on Wednesday reported a 30 per cent decline in consolidated profit after tax at Rs 41.39 crore in the second quarter ended September 30, 2022 impacted by higher expenses.

The company had posted a consolidated profit after tax of Rs 59.76 crore in the same period last fiscal, Mahindra Holidays & Resorts India Ltd (MHRIL) said in a regulatory filing.

Consolidated revenue from operations during the quarter under review stood at Rs 598.36 crore, as against Rs 546.4 crore in the year-ago period, it added.

The company said total expenses were higher at Rs 574.66 crore, as compared to Rs 515.13 crore in the same period a year ago, with employee benefits expenses at Rs 153.27 crore, as compared to Rs 133.57 crore in the same period last fiscal.

Also, other expenses were higher at Rs 287.43 crore, as compared to Rs 246.25 crore in the same quarter last fiscal, the filing added.

''Acceleration in room inventory and growth in member additions is reflected in the strong performance with highest ever Q2 total income, EBITDA and PBT (profit before tax),'' MHRIL Managing Director and CEO Kavinder Singh said.

On the company's European operations, he said 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.

On a standalone basis, MHRIL said it added 4,397 new members at a growth of 12 per cent in the second quarter and membership sales value was at Rs 194 crore, up growth 93 per cent.

The company further said it had a higher average unit realisation (AUR) at Rs 3.9 lakh, as against Rs 2.6 lakh in Q2 FY22.

During the second quarter, 116 keys were added to the existing inventory through new resorts at Mount Abu and Kathmandu (Nepal) and extension of Gangtok (Sikkim) resort. Total inventory stands at 4,715 rooms across 86 resorts, it said.