India's Mahindra Holidays' Q2 profit nearly halves

Mahindra Holidays and Resorts India

23/10/2023 12:31

BENGALURU, Oct 23 (Reuters) - Mahindra Holidays and Resorts India
 MAHH.NS  posted a 47.8% drop in second-quarter profit on Monday, dragged down
by its European business and higher expenses.
    The hospitality chain, which runs the 'Club Mahindra' brand of resorts, said
its consolidated net profit fell to 213.4 million rupees ($2.57 million) for the
quarter ended Sept. 30, from 408.6 million rupees a year earlier.
        Its European segment - called Holiday Club Resorts Oy (HCR), comprising
nearly half of the topline - reported a loss before tax of 23.1 million rupees,
compared with a profit of 10.2 million rupees a year earlier.
    This compares to a loss before tax of 365.2 million rupees in its European
operations in the first quarter.
        The European business took a hit during the September-quarter as people
cut back on leisure travel amid rising costs of living and higher inflation.
        Total expenditure jumped 10.7%, which outpaced a 9.5% rise in revenue to
6.55 billion rupees. The company also flagged a one-off expense of 68 million
rupees.
        Additionally, heavy rains and landslides in the states of Himachal
Pradesh and Uttarakhand affected resort occupancy, which fell to 77% from 79% a
year ago, the company said.
    Shares of the hospitality firm fell as much as 10.8% after the results. The
stock advanced 32% in the September-quarter.


($1 = 83.1380 Indian rupees)

 (Reporting by Anisha Ajith in Bengaluru; Editing by Sonia Cheema)
 ((anisha.ajith@thomsonreuters.com;))