India's Mahindra Holidays posts three-fold rise in Q3 profit, shares jump

Mahindra Holidays and Resorts India

31/01/2025 09:55

Jan 31 (Reuters) - Mahindra Holidays and Resorts India
 MAHH.NS  reported a near three-fold surge in its third-quarter
profit on Friday, as strong demand for leisure travel boosted
the hospitality firm's membership.
    The company's shares jumped as much as 7.5% after the
results.
    Consolidated net profit rose to 348.4 million rupees ($4
million) in the December quarter, from 116.5 million rupees a
year earlier, said the company, which provides resorts and
sightseeing packages under its 'Club Mahindra' membership
programme and earns revenue from membership fees. 
    Hotel demand has risen significantly, fueled by more people
prioritising leisure travel, with popular tourist destinations
in north India and Goa seeing notable increases in visitor
numbers. 
    Government efforts to promote tourism and hospitality have
also helped the sector.
    Mahindra Holidays said it added 3,000 new members during the
quarter, taking the total memberships to over 300,000 members.
    Its average unit realization, the average revenue generated
per membership, grew 37% year-on-year.
    Total revenue increased 7% to 6.78 billion rupees, with
revenue from its India operations rising 6%.
    Total expenses of the company remained flat year-on-year,
further aiding its profit growth.
    Mahindra Holidays also manages properties in Finland,
Sweden, and Spain through its subsidiary, Holiday Club Resorts
(HCR). Revenue from the subsidiary rose 6% year-on-year.
    Earnings before interest, tax, depreciation, and
amortization (EBITDA) rose to 1.78 billion rupees from 1.37
billion rupees a year earlier.
    

($1 = 86.6500 Indian rupees)

 (Reporting by Ashna Teresa Britto; Editing by Eileen Soreng)
 ((AshnaTeresa.Britto@thomsonreuters.com;))