Mahindra Holidays & Resorts India Ltd's Q2FY19 adjusted standalone net profit rises 0.69% yoy to Rs31.92cr

The company’s standalone revenue stood at Rs251.68cr, up 4.8% yoy but down 12.48% qoq.

Oct 29, 2018 08:10 IST India Infoline Research Team

Mahindra Holidays & Resorts India Ltd Q2FY19

Standalone Results Q2FY19 (without adoption of Ind AS 115): (Rs. in cr)

Q2FY19 YoY (%)
Revenue 251.68 4.8
EBITDA 49.81 [8.3]
EBITDA Margin (%) 19.8 [283]
Net Profit (adjusted) 31.92 0.7
***EBITDA margin change is bps

• The reconciliation of financial results with and without Ind AS 115 is as follows:
Particulars (`cr) Amount with adjustment of Ind AS 115 Amount without Ind AS 115 adjustment
Revenue 209.40 251.68
EBITDA 23.54 49.81
EBT 22.61 49.35
Net Profit 14.46 31.92
o Under Ind AS 115, vacation ownership (VO) income is recognized over the tenure of membership. Earlier, 60% of non-refundable admission fee was recognized upfront and 40% is deferred over the tenure of membership.
o Cost pertaining to VO – Only incremental costs to obtain the contract are amortized over the tenure of membership. Earlier, all costs were allocated to P&L as and when incurred.
• The increase in revenue is backed by new member additions leading to higher vacation ownership segment revenue (5.2% yoy). However, resort income declined by 8.4% yoy on account of lower occupancy (76% in Q2FY19 vs. 81% in Q2FY18) coupled and average room rent (ARR) (Rs3,857 in Q2FY19 vs Rs4,108 in Q2FY18) on account of impact on Kerala properties due to floods.
• Member additions for the quarter stood at 4,145, up by 11.9% yoy.
• The effective tax rate of the company increased to 36.2% in H1FY19 (with Ind AS 115) as against 34.9% in H1FY18 (without Ind AS 115).
• The company has cash and cash equivalents as on September 30, 2018 is Rs484cr.

Technical View:

Mahindra Holidays & Resorts India Ltd ended at Rs. 212.20, up by 3.65 points or 1.75% from its previous closing of Rs. 208.55 on the BSE.
The scrip opened at Rs. 207.30 and touched a high and low of Rs. 217.50 and Rs. 206.65 respectively. A total of 1,09,270 (NSE+BSE) shares were traded on the counter. The stock traded above its 200 DMA.

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