India's Mahindra Holidays posts 99% slump in Q1 profit as Europe losses weigh

Mahindra Holidays and Resorts India

25/07/2023 11:58

BENGALURU, July 25 (Reuters) - Mahindra Holidays and
Resorts India  MAHH.NS  reported a 99% slump in first-quarter
profit on Tuesday, hit by higher expenses and widening losses in
Europe. 
    Consolidated net profit for the company, known for its
flagship resorts brand "Club Mahindra," was 1.8 million rupees
($21,992.90) for the quarter through June 30, compared with
297.3 million rupees a year earlier. 
    Revenue from operations rose 1.6% to 6.14 billion rupees.
    Profitability was hit by the low demand in Finland and
Sweden, the company said in a statement.
    Resort occupancies barely grew one percentage point from a
year ago to 90%. Total expenses rose 7.7%, led by higher rent,
finance and depreciation costs due to room inventory addition.  
   
    Revenue from the Europe, where brands such as Holiday Club
Resorts OY or HCRO operate, declined nearly 10%. The segment's
loss before tax nearly tripled to 365.2 million rupees. 
    In India, the profit grew 7.3%, while revenue rose nearly
17%.    
    The Mahindra Group company, however, was optimistic about
this quarter, citing the summer holiday season and a pick up in
domestic travel from the last week of June. It also expects
demand to continue rising until mid-August.     
    Shares of the company settled 3.1% lower after falling as
much as 5% soon after the earnings announcement. 
    
($1 = 81.8446 Indian rupees)

 (Reporting by Rama Venkat in Bengaluru; Editing by Dhanya Ann
Thoppil)
 ((ramavenkat.raman@thomsonreuters.com; https://twitter.com/ramavenkat0607;
 +91 8095218099;))