Shares of Mahindra Holidays & Resorts India Ltd. rose to their highest in seven months after the hospitality services provider managed to stage a “turnaround” and post a profit in the seasonally weak second quarter.
That came on account of a higher income from vacation ownership—a property with a divided form of ownership or use rights—and strong performance from the Holiday Club segment.
“Our income growth happened mainly because of vacation ownership income that grew by 16 percent,” Managing Director and Chief Executive Officer Kavinder Singh said in an interview to BloombergQuint. “Also, our Holiday Club Resorts segment reported Rs 36 crore profit compared with Rs 8 crore last year.”
That came even as heavy unseasonal rainfall in Kerala, Himachal Pradesh and Uttarakhand “impacted” occupancy levels to 74 percent from the expected 78-80 percent levels during the September quarter, Singh said.
Mahindra Holidays Q2 Results 2019-20: Key Highlights (YoY)
- Revenue up 7.7 percent to Rs 555.7 crore.
- Net profit at Rs 23.9 crore versus a net loss of Rs 1.6 crore.
- Ebitda up 3.9 times at Rs 99.6 crore.
- Margin stood at 17.9 percent against 5 percent.
WATCH | MD & CEO Kavinder Singh on Mahindra Holidays' Q2 Results
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