Mahindra Holidays & Resorts India Ltd.'s net profit declined for the July-September quarter as the new member additions fell.
Net profit fell 4.5 percent to Rs 31.7 crore on a year-on-year basis as addition of new members decreased 14 percent, the company said in an exchange filing. Sales also went down by nearly 6 percent to Rs 243 crore in the same period.
โMember additions have fallen as we have been driving significant improvements in our customer acquisition processes,โ said Kavinder Singh, managing director and chief executive officer of the company. The company discontinued its lowest priced holiday package called Blue Studio as several customers were not paying monthly installments that were spread over four years. Greater focus on credit card payments and collection of half or full down payments also caused a short term dip in new members addition, he added.
On an cumulative basis, the total member base stand at 2.25 lakh. โWe have been growing at 8-9 percent on a cumulative basis and that growth will be maintained,โ said Singh. The new objective is to add the right quality of members to improve cash flow position, he said.
The company's cash flows improved by nearly 90 crore in the current quarter to Rs 354 crore. โWe have Rs 1,400 crore receivables which can also be securitised from the banks if needed,โ said Singh.
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