Business Recorder
Mahindra Holidays and Resorts India reported a 43% drop in fourth-quarter profit on Monday, pressured by sluggish travel demand amid geopolitical tensions. The company, which operates the premier Club Mahindra brand, derives a significant share of its revenue from vacation properties in Finland, Sweden and Spain, which have been hit by flight disruptions and elevated fuel pricesfollowing the Iran war. Many flights between India and Europe transit through Dubai or other major hubs in the Middle East, which faced airspace closures in the quarter. “Our international operations continued to be impacted by geopolitical headwinds, a slowdown in the Finnish economy and adverse weather conditions during the year,” Managing Director and CEO Manoj Bhat said. The company’s consolidated net profit fell to 415.6 million rupees ($4.41 million) for the quarter ended March 31, compared with 730.8 million rupees a year ago. Total income from its overseas unit, Holiday Club Resorts, fell to 38.7 million euros ($45.45 million) from 39.7 million euros a year ago. However, resort revenue rose 11% to 120 million rupees from a year ago, helping offset some of the impact, as more customers shifted toward domestic travel. The number of members added, a key revenue driver, decreased sequentially by 445, with total memberships standing at nearly 304,000 in the quarter. Membership upgrades grew by 930 million rupees, though, a 33% rise from a year ago. Overall quarterly revenue climbed 5.3% to 8.2 billion rupees, while total expenses rose 10.5%. Shares of Mahindra Holidays fell 4.6% after the results.
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