Mahindra Holidays

Mahindra Holidays held its annual general meeting on June 26 2010 at Chennai. The meeting was chaired by A K Nanda the chairman of the company. The key takeaways of the meet

Key Highlights of the meet

• Net sales for the year ended March 2010 on standalone basis increased by 19% to Rs 468.75 crore and other income from operation declined by 12% to Rs 41.45 crore totaling income from operations to increase by 16% to Rs 510.20 crore. Operating profit margins increased by 370 bps to 38.1% boosting operating profit by 28% to Rs 194.20 crore. Net profit rose by 41% to Rs 117.84 crore.
• Total income from operation for the quarter ended June 2010 declined by 25% to Rs 101.78 crore. The decline in the sales is due to stringent measures taken by the company. MHRIL has increased down payment from customers to 15% from 10% earlier. Maximum number of installment also decreased to 40 months from 60 months earlier. This stringent measure will decrease the number of cancellation. Operating profit margins crashed by 2090 bps to 22.6% due to increase in the costs and lesser revenues. Finally net profit fell by 61% to Rs 13.29 crore.
• As end of June 30 2010, the total membership base stood at 113829, an addition of 3945 members added in Q1 FY'11. Club Mahindra and Zest membership grew to 108041 and 5788 respectively. The occupancy rate for Q1 FY'11 stood at 84.9%.
• The inventory of apartments increased by 1476 as on 31^st March 2010 to 1489 as on 30 June 2010.
• The company signed a MoU for 25 apartment resort in Ranthambore for jungle tourism.
• As on date, it owns 33 resorts. Break up: 13 own and 20 leased. Around 70% of total inventory were owned and remaining were leased.
• In peak seasons, MHRIL stopped renting rooms for non-members. Also planning to stop renting rooms for non-members in non peak seasons too.
• The company has launched one product tera in the June 2010.
• In Ashtamudi project, the company is planning for 40 apartments with investment cost around Rs 25 crore.
• The new resorts at Tungi, Maharastra would have around 180 odd rooms. The project would be constructed in 42 acres.
• Expects to add 400-500 rooms in FY'11.