Mahindra Holidays & Resorts India (MHRIL) has posted a 23% increase in the net profit at Rs 25 crore in the June quarter against Rs 20.42 crore in the corresponding quarter last fiscal.
To expand its footprint in vacation ownership space, Mahindra Holidays & Resorts India (MHRIL), the leisure and hospitality subsidiary of $16.9 billion Mahindra Group, is planning to add 700 units (rooms) to its inventory in 2-3 years. Going by the industry estimate of Rs 75 lakh investment per room, the company would have to shell out close to Rs 525 crore on the expansion plan.
Speaking to mediapersons on Tuesday after the board meeting to finalise the Q1 results, Kavinder Singh, the managing director & CEO, MHRIL, said the company has lined up both greenfield and brownfield projects as part of the expansion plan. “Our expansion will see both greenfield and brownfield projects. The greenfield projects include one resort each in Shimla and Goa. The brownfield projects will come in some of the existing resorts such as Ashtamudi in Kerala and the existing Shimla property,” he said.
The company has 2,891 rooms in its inventory, of which 409 rooms were added in 2014-15 and 75 in the first quarter ended June 2015. The leisure holiday major has a customer base of 1.86 lakh members and has 46 resorts across India and abroad. Singh noted 65% of the resorts are owned, while the balance are leased. The occupancy ratio is around 82% at the resorts. “ In the first quarter, we opened second property in Munnar with 51 rooms and started 24 houseboats at Dal lake in Srinagar, which has got 95% occupancy. We have land banks at many places and we will be looking at places that have demand, and Tamil Nadu will be one place on our radar,” he said.
He said the company has further increased its stakes to 88% from 23% in Holiday Club Resort Oy, Finland (HCR). After scaling up the stake, the balance 12 % will be held by the local management. “The acquisition will help the company to further its foot print in the global markets such European Union. With this and the existing tie ups with RCI, we will be the major vacation leisure major outside the US,” he said. Singh said the company would looking at opportunities at many palces in Europe incluing Greece.
Net rises 23% to Rs 25 crore
Mahindra Holidays & Resorts India (MHRIL) has posted a 23% increase in the net profit at Rs 25 crore in the June quarter against Rs 20.42 crore in the corresponding quarter last fiscal. The company posted a total income of Rs 231 crore registering a growth of 21%. Ebitda stood at Rs 56 crore, up 23%.
Kavinder Singh, MD & CEO, said, “Our operating metrics are showing a healthy trend. Member additions are growing at a brisk pace, with 50% increase in Q1FY16 (y-o-y). Our referral and digital sales contribution is at 54% (of total sales) indicating growing ‘consumer pull’ for our proposition.”