India's Mahindra Holidays posts lower Q2 profit as international travel slows

Mahindra Holidays and Resorts India

25/10/2024 10:28

Oct 25 (Reuters) - Mahindra Holidays and Resorts India
 MAHH.NS  reported a 35% fall in its second-quarter profit on
Friday, bogged down by weak sentiment towards international
travel.
    Shares of the company, which offers resorts and sightseeing
packages through its 'Club Mahindra' membership and generates
revenue through membership fees, fell about 3% after the
results.
    Mahindra Holidays' consolidated net profit fell to 137.7
million rupees ($1.64 million) in the September quarter, from
213.4 million rupees a year earlier.
    Geopolitical tensions and higher costs of travelling abroad
have held back consumers from making international travels,
analysts said.
    That weighed on Mahindra Holidays, which gets about 47% of
its total revenue from its international business that includes
properties across Finland, Sweden and Spain.
    "The macroeconomic conditions continue to impact overall
performance," the company's managing director and CEO, Manoj
Bhat, said about European operations.
    Total income at the international business, Holiday Club
Resorts (HCR), fell to 34.2 million euros ($37 million) from
36.6 million euros a year ago, and also weighed on margins.
    However, the company's overall revenue was boosted by
surging demand for leisure travel domestically, coupled with the
government's focus on tourism and hospitality to make India one
of the top five global tourist destinations by 2030.
    Total revenue grew 2% to 6.71 billion rupees in the quarter.
 
 ($1 = 84.0725 Indian rupees)
 ($1 = 0.9240 euros)    

 (Reporting by Ashna Teresa Britto in Bengaluru; Editing by
Abinaya Vijayaraghavan)
 ((AshnaTeresa.Britto@thomsonreuters.com;))