Mahindra Holidays & Resorts India Ltd Management Discussions.

Mahindra Holidays & Resorts India Limited (Mahindra Holidays, MHRIL or the Company) is a leading player in the leisure hospitality industry in India. Founded in 1996, the Company has established vacation ownership business in India and is a market leader in the vacation ownership business with over 2.58 lakhs members. Together with its Finnish subsidiary, Holiday Club Resorts (HCR), Mahindra Holidays has over 3.2 lakhs members and 100+ resorts in India, Asia, Europe and USA, making it the largest vacation ownership company outside the USA and among the Top 7 vacation ownership companies in the world.

In addition, Mahindra Holidays also offers its members access to 4,300+ RCI affiliate resorts worldwide, opportunity to holiday at other popular destinations in India and abroad through its exchange programmes and unique membership privileges — an unmatched range of travel and lifestyle experiences — which differentiates it within the leisure hospitality industry.

This Management Discussion and Analysis (MDA) Report presents an overview of the operational and financial performance of the Company. It also discusses the macroeconomic environment and opportunities, Mahindra Holidays strategy and important initiatives taken by it during the year. We begin with highlights of the Companys performance in 2019-20 (Box 1).

Box 1: MHRILs Performance in 2019-20 — Key Highlights

• Mahindra Holidays added 15,697 members to its vacation ownership business in 2019-20 — taking the cumulative membership base to over 2.58 lakhs

at the end of 2019-20. This represents a compounded annual growth rate (CAGR) of 7.1% in membership over the last five years. This performance is even more creditable given the broad-based slowdown in 2019-20, further exacerbated by the COVID-19 pandemic towards the end of the financial year. A more detailed discussion is presented in the sections on Macroeconomic Environment and Opportunities and Business Performance - Membership

• The Company offers 100+ resort options to its members, including 33 resorts of its Finnish subsidiary Holiday Club Resorts (HCR) and affiliate resorts in USA. The Company added 224 room units during the year and the total room inventory stands at 3,732 units across 70 resorts excluding HCR. Additions happened though expansion of its existing resort at Ashtamudi and new inventory arrangements at several new destinations — Rishikesh, Agra, Bandhavgarh, Khajuraho, Mysore and at a golf resort near Bengaluru. International presence also expanded with inventory tie-ups in Pattaya, Phuket and Bhutan. The section on Business Performance - Properties and New Projects provides further details.

• Focus on the Companys strategic priorities continued during the year. In the area of experience ecosystem, the Company introduced various offerings under Club M Select, inventory exchange programme and curated holidays were expanded. Member engagement was enhanced through Heart-to-Heart events. This combined with the use of digitisation and advanced analytics to personalise offers and experiences contributed towards enhancing Member Life Time Value. Several successful marketing and brand building campaigns and engagement efforts were carried out during the year utilising digital content on mobile and social media platforms. The section on Strategic Priorities provides a more comprehensive review of these activities.

• Post-holiday feedback scores, which measures satisfaction for member holiday experience at resorts, have shown consistent improvement since the inception of the programme. Despite the impact of floods and heavy rains in the second quarter and COVID-19 crisis in March 2020, the Company achieved an occupancy of 80.3% at resorts in 201920. Key operational metrics of superior member experience — be it referrals, product upgrades — have shown considerable improvement. Further details are available in the sections on Resort Operations, Member Experience and Business Excellence.

• The COVID-19 pandemic, which proliferated in India in March 2020, will have a wide-ranging impact on the economy specifically in the travel and tourism sector. Protective measures to combat the health crisis resulted in a nationwide lockdown starting March 25, 2020. While the impact on Mahindra Holidays performance in 2019-20 was limited due to the timeline of events, future performance will depend on how the Company adapts and prepares itself for the realities of a post-COVID world. The Companys approach in this respect is discussed in greater detail in the sections on Threats, Risks and Concerns and Outlook, whereas its preparedness for resuming day-to-day operations at resorts are covered in Resort Operations.

Macroeconomic Environment and Opportunities

The world economy witnessed yet another year of poor economic performance with significant deceleration of growth in 2019. According to the International Monetary Fund (IMF), global economic growth came down to 2.9% in 2019 from 3.6% in 2018. Not only is this a decadal low, the slowdown was broad-based, affecting both advanced economies and the developing world.

Indias economic growth also decelerated considerably in 2019-20 — with GDP growing at 4.2% in 2019-20, compared

to 6.1% in the previous year. Not only did the economic growth slow down as the year progressed (See Chart A), but there was also dampening of consumer sentiment — affecting the spends on discretionary categories such as holidays, and in turn the Companys performance.

The growth outlook for 2020-21 remains uncertain due to the COVID-19 crisis. Even with the baseline scenario of the pandemic fading in the second half of 2020, the IMF projects world output to contract by 3%. India, too, will see a significant deceleration in economic activity. But, according to IMF, it will still be among the few economies to record a positive growth of 1.9% in 2020. The Reserve Bank of India (RBI) also expects a sharp turnaround in Indias performance once containment efforts are unwound and economic activity normalises.

As far as the travel and tourism industry is concerned, the longterm fundamentals remain strong. The vacation ownership industry, with its loyal membership base, has an even more favourable risk profile. To be sure, it will be impacted by the COVID-19 crisis in the immediate future. It is also likely that there are more lasting changes in holidaying preferences — for instance greater interest in domestic destinations, within drivable distances — and heightened expectations in terms of safety and hygiene. Mahindra Holidays expects its members to begin holidaying at its resorts, once the travel restrictions are eased off. The Company with its large network of resorts in India and an unparalleled experience ecosystem is well positioned to take advantage of the expected recovery in domestic travel.

Strategic Priorities

Mahindra Holidays believes that there is a significant potential for further growth of vacation ownership industry in India as the market penetration is still very low. If one compares the Indian vacation ownership industry with the USA in terms of its share in the hospitality sector, the scope for growth in India is at least five times that of its current size. Similar conclusions can be drawn if one considers other surrogates such as

ownership and sale of cars. This is also reflected in faster growth in domestic tourism, a trend that is likely to accelerate further in the post-COVID scenario.

Considering the competitive landscape, key trends in the leisure travel and shifts in media consumption trends, the Company has identified three key strategic priorities to differentiate itself in the market and benefit from the opportunities. These are given below.


Building an Experience Ecosystem

The objective is to strengthen the Club value proposition of the Club Mahindra brand by building an extensive experience ecosystem offering unparalleled choice of experiences, destinations and itineraries. While providing immersive holiday experiences continues to be at the core of the Club Mahindra offering, the idea is to go beyond that and offer unique privileges and services to its members even outside the 7-day holiday period in a year.

In 2019-20, there was significant consolidation of the work in this area. A roundup of important elements of the experience ecosystem is given in Box 2.

Box 2: The Club Mahindra Experience Ecosystem

• Choice of Resorts: Mahindra Holidays added nine resorts during the year and the resorts count is now 70. Including 33 additional resorts through its Finnish Subsidiary HCR, members have access to 100+ resorts in India, Asia, Europe and USA.

• Club M Select is an exclusive subscription programme which allows enrolled members access to several luxury lifestyle offerings such as gourmet dining, access to golf clubs, movie pass, yoga studios, international cruises, yachts and over four lakhs hotels in India and worldwide; and over 70,000 international excursions — all at very attractive rates. It has a dedicated helpdesk and is fully integrated with the Companys website for seamless bookings and payments.

• Dreamscapes is an online platform that offers a wide variety of in-city experiences curated for members

with preferential rates and end-to-end support for instant bookings and payments.

• Curated Holidays are itinerary-based complete holiday experiences including accommodation, food, sightseeing and transfers covering popular destinations in India and around the world such as Blissful Bali, Amazing Andamans, Greece Mythology, Treasures of Turkey, Ranthambhore Wild Trails and Thundering Roars of Tadoba

• Weekend Getaways were introduced during the year with 100+ villas in popular getaway destinations

across India. Includes well-appointed properties with all basic amenities and special rates for the members.

• Exchange programme to expand the set of

destinations. Members can exchange their Club Mahindra room nights for stays in top-rated hotel chains and cruise experiences. In 2019-20, the coverage increased to over 190 hotels in more than 100 locations in India and abroad.


Enhancing Members Life Time Value

The objective is to enhance the Member Life Time Value — contribution of members to the Company throughout the membership period — by designing activities and services at resorts that members would like to avail during their holidays or through generating upgrades and referrals. This has been achieved through deeper member engagement both within and outside the resorts as well as use of digitisation and advanced analytics to personalise offers and experiences. The important initiatives are given in Box 3.

Box 3: Enhancing Member Life Time Value

• Heart-to-Heart events are in-city member meets

which include leisure and edutainment activities for member families. The idea is to engage with members beyond the holiday period, address their concerns and generate referrals. During the year, coverage of these events was expanded further to Tier 2 and Tier 3 cities. Around 11,000 members and their families participated in these events in 2019-20.

• The resort recommendation engine was upgraded to improve the accuracy and offer personalised resort recommendations over a sliding time-frame of 1 - 90 days as opposed to fixed windows of next 15, 30 and 60 days earlier. These recommendations are based on a machine learning algorithm that utilises profile and past booking preferences of members.

• A resort inventory yield optimisation model was

implemented during the year to better manage inventory in high demand resorts, allowing more members access and increase occupancies in the process. This was piloted in selected resorts during the year and will be extended to other resorts.

• Full automation of membership upgrade process including information on season and rooms upgrade options available to the member and online payments through the website or the mobile app.

• The online pre-purchase catalogue was expanded considerably during the year. These advance purchase options — such as F&B, spa and holiday activities as well as local travel — are available to members at the time of booking along with payment gateway infrastructure to seamlessly close the transaction.

In 2019-20, member upgrades have increased significantly. Resort income has increased from Rs. 220 crore in 2018-19 to Rs. 228 crore in 2019-20. This is significant considering the loss in occupancy in the second quarter during floods and heavy rains in Kerala, Coorg, Himachal Pradesh, Uttarakhand and Maharashtra as well as the COVID-19 crisis towards the end of the financial year.

For its efforts in the area of digitisation and analytics, the Company received three recognitions at the DMA Asia Echo Awards 2019: (i) Bronze for Travel and Hospitality sector,

(ii) Bronze for Best Customer Loyalty Campaign, and (iii) Bronze for Best Use of Data-Driven Technology.


Focus on Digital-Mobile-Social

Another strategic priority for the Company has been to reinvent its marketing strategy around digital formats and platforms in line with media consumption trends which favour mobile devices and social media. The thrust for marketing and brand building activities has been to bring alive the Club Mahindra experience and generate a pull for the brand by making it more aspirational and exciting. Some of the key initiatives and achievements in 2019-20 are presented in Box 4.

Box 4: Reinventing Marketing — Key Initiatives

Video Content: MHRIL continued to create engaging video content that showcases resorts and gives a flavour of the unique experiences at Club Mahindra

— from staying in a treehouse with a view of the Himalayas, learning the art of pottery, experiencing a traditional ayurvedic massage to dining like the royals at the Raja Rani dinner. An all new film was launched with popular actress and television host Ms. Mandira Bedi, narrating the reasons to become a Club Mahindra member — capturing destinations, experiences, privileges and indulgences that makes the membership a unique proposition.

Social Media: Social media channels are one of the key pillars of brand building in todays environment. Mahindra Holidays leverages them to engage with members and prospects through strategic targeting and platform tailored content. Besides, membergenerated photos and content, interactive digital activities and topical campaigns generate increased reach and engagement across channels.

• Brand Campaign: To create brand affinity and enhance interest in MHRILs resorts and experiences. On World Family Day, first page of Indias leading daily, The Times of India, was transformed into an origami art project for families to come together, fold together and unfold magical moments — an immersive experience that garnered 3.3 million views and made the campaign trend at #3 on Twitter. Focussed efforts were made to communicate the fact that the members can now holiday at 100+ resorts in India and abroad. This milestone was amplified across TV, print and digital media under the Holiday Goals campaign that showcases its stunning resorts and brings alive the magic of Club Mahindra.

• Innovative Consumer Engagement: Several

innovative consumer-connect campaigns were carried out during the year to create excitement around the brand. These included partnership with "Spiderman: Far From Home" for the members and prospects and a 360-degree engagement on Childrens Day with Ruskin Bond telling the stories of Christmas on social media, an augmented reality print ad in the Times of India and #MeetTheRealSanta contest — inviting children to write a letter to the Real Santa at the Santa Village in Finland. This was taken forward with exciting themed events in malls and creation of Santa Village in key resorts.

• Resort Campaign: Mahindra Holidays continued to excite members and guests at its resorts with specially curated activities and events like Magical Monsoons, Rajasthan Heritage Trails, Tea & Coffee Trails. During the year, it also launched 20 types of Theme Nights across resort locations. These campaigns helped create unique and memorable experiences for the members and their families.


In recognition of its efforts, Mahindra Holidays won the Times Travel Awards 2019 — Indias Most Popular Resort Chain. The World Family Day campaign received two awards: (i) Silver at DMA Marketing Awards 2019, and (ii) Silver for Best Use of Print at Indian Marketing Awards 2019.

Business Performance



Club Mahindra is the Companys flagship product in the vacation ownership business, which entitles its members a weeks holiday every year for a period of 25 years. It also markets Bliss — a flexible points-based product targeted at the 50 plus age group — which offers a weeks holiday every year for 10 years.

During 2019-20, the Company added 15,697 members. After accounting for retirements, the total membership grew to 258,336 as on March 31, 2020 — representing a CAGR of 7.1%

in membership over the last five years. Chart B provides data on the cumulative membership for the last 10 years.

Chart B: Cumulative Vacation Ownership Membership

Note: Membership includes all vacation ownership products of the Company

The performance is creditable given the subdued macroeconomic environment and poor consumer sentiment towards discretionary purchases during the year. Besides, customer acquisition efforts were significantly affected due to the COVID-19 crisis in the fourth quarter of 2019-20, which has historically been the Companys best performing period.

The strong member addition is a result of concerted efforts made by the Company on several fronts. First, continued success of Companys pull-based digital and referral leads reinforced with encouraging contribution through alliances and corporate partnerships, which increased significantly during the year. Second, with pan-India extension of its sales and marketing efforts, Bliss has also contributed to the overall performance.

The Company continues to benefit from its large geographic reach, including high-potential Tier 2 and Tier 3 cities, which have gradually been increasing their contribution to the sales mix. At the end of 2019-20, Mahindra Holidays was present in 120+ locations in India through a network of branch offices, sales offices, onsite teams and channel partners. In addition, the Company has presence in seven other countries with significant Indian population to market its products.

Club Mahindra Fundays, is a corporate product which allows enrolled organisations to offer holiday entitlements to its employees either as a part of their reward and recognition programme or as an employment perquisite. During the year, this product performed satisfactorily, with signing up of new accounts and an increase in the number of room nights utilised.

GoZest, is a three-year points-based product aimed at millennial travellers. It is an experiential product designed to give the Club Mahindra experience to the young target group and generate interest for the core offering. During the year, the product was launched for the targeted market segments and in select geographies. GoZest members are also the prospects for conversion to the 25-year product of the Company.

Properties and New Projects

Mahindra Holidays currently has a pan-India presence through its extensive network of resorts across destinations including hill stations, beaches, backwaters, wildlife sanctuaries, forts and heritage destinations. It is also present in international destinations such as Bangkok, Kuala Lumpur, Singapore, Dubai, Colombo and Orlando. In addition, Club Mahindra members have a choice to visit HCRs 33 resorts in Finland, Sweden and Spain (Gran Canaria).

Mahindra Holidays added 224 room units in 2019-20 and the total inventory stands at 3,732 units across 70 resorts by the end of the year. Including its Finnish subsidiary HCRs 33 resorts, the Company achieved the landmark of offering 100+ resorts to its members. Additions to the inventory during the year happened though expansion of its existing resort at Ashtamudi and new inventory arrangements at several tourist destinations — Rishikesh, Agra, Bandhavgarh, Khajuraho, Mysore and at a golf resort near Bengaluru. International presence also expanded with inventory tie-ups in Pattaya, Phuket and Bhutan. Chart C provides information on growth of number of resorts and room inventory in the last 10 years.

Chart C: Number of Resorts & Cumulative Inventory (Room Units)

In line with the Companys strategy, majority of the inventory is owned by it. In cases where resorts are under long-term lease arrangements, it manages the resorts to ensure delivery of complete range of services to its members and ensures consistent experience in both owned and leased properties.

Increasing room inventory in line with membership additions is a key focus area. The Company is currently undertaking two projects: a greenfield project at Assanora (Goa) and an expansion project at Ashtamudi (Kerala). These are being implemented in phases, which will eventually add close to 250 units. In 2020-21, around 150 units are expected to be added. In addition, a 140 units expansion project at Kandaghat (Himachal Pradesh) and two new greenfield projects in Theog (Himachal Pradesh) and Undi (Ganpatipule, Maharashtra) are in planning and approvals stage.

Mahindra Holidays is also pursuing attractive opportunities for acquisition and leases in various parts of the country. It has

land bank at ten destinations across five states. Some of the existing resorts also have additional land that can be utilised for further expansion. This provides the flexibility to build at such destinations and add room inventory on an ongoing basis. The Company is evaluating the opportunity and development potential at some of these locations.

Resort Operations

Efficient resort operations and thoughtfully designed, engaging resort amenities are central to delivering immersive holiday experiences. This encompasses three key areas: infrastructure and facilities, holiday activities and F&B. During 2019-20, focus continued to be on improvements and innovation across all these fronts.

In 2019-20, the Company made significant investments in upgrading rooms, renovation of public areas and amenities such as spa and banquets across several resorts. Host and Champs programme, which have been instrumental in enhancing member engagement at resorts and delivering quality holiday experiences, now cover all managed resorts by the Company.

Holiday activities are central to delivering a complete holiday experience. At Mahindra Holidays, these activities are institutionalised under the banner of Happy Hub built around a strategy of do-learn-connect. These include outdoor, action-oriented activities, customised table games, learning new forms of arts, skills or picking up hobby project and connecting with other holidaying families through group activities. This was extended to all managed resorts during the year.

In another important initiative during the year, 20 types of Theme Nights were launched across resorts, which involves delivering theme-based experiences including theme decor, uniforms and F&B to the members. All managed resorts carry out an allocated number of such theme events — for instance Retro to Metro, Carnival Night, Flavours of India, Bollywood Night, The Great Gatsby, Royal Maharaja — as a part of their events calendar.

Box 5: Resort Awards and Certifications

Mahindra Holidays has the unique distinction of having 32 RCI Gold Crown and 3 Silver Crown resorts in India, which bears testimony to the high standards of resort facilities, amenities and services that its resorts offer.

Fifteen resorts are certified under ISO 22000, which is an international accreditation recognising enhanced food hygiene and safety. Further, 22 of the Companys resorts have obtained FSSAI Hygiene Certificate.

In 2019-20, Club Mahindra Varca won Times Hospitality Icons as well as 5 Star Timeshare Resort awards. Emerald Palms, Goa, won Best of India - Biz Award in category of Best Family Hotel during the year. Club Mahindra Gangtok was awarded the Best Eco Friendly Resort in Sikkim by the Government of Sikkim and Club Mahindra Kanha was adjudged as the Green Hotel of the Year (Upscale to MidMarket category) at the Hoteliers India Awards.

In F&B, efforts are continuously undertaken to make the dining experience more exciting and fulfilling. During the year, the Company launched its speciality seafood restaurant Meen Kada at Cherai and Bakers Cafe at Pondicherry. Its All Inclusive F&B plan — a bundled value-for-money offering with a choice of different dining options — continues to be popular among the members. This was also bundled with the theme nights to offer an immersive experience.

Box 6: COVID-19 — Preparedness at Resorts

The Company is proactively preparing for measures to ensure the safety and well-being of its employees and members at the resorts, after the travel restrictions are removed. Some elements of the Companys preparedness at resorts are presented below:

• All resort standard operating procedures (SOPs) are being revised keeping in mind post-COVID norms of screening of employees and members, implementing social distancing, and maintaining high levels of sanitisation and hygiene standards. More so in processes where member contact is involved such as check-in and check-out, F&B and housekeeping. Entirely new concepts and avenues for member engagements are being designed to provide experiential and safe holidays to the members.

• Processes are in place for strict monitoring of vendors and suppliers for their hygiene practices. Through the Companys community outreach programmes in schools and villages around the resorts, it intends to create greater awareness on COVID-19 dos and donts as well as important hygiene and safe practices.

• During the lockdown, essential maintenance at the resorts, including housekeeping, garden and landscaping were effectively carried out by prechecked employees, self-quarantined within the premises. Processes are in place for medical and administrative checks of employees before they join active service.

Mahindra Holidays has institutionalised post-holiday feedback (PHF), which encompasses all key areas of resort operations. This serves as a measure of its success in delivering quality holiday experience as well as identifying and addressing member concerns. The Company continues to make its PHF programme complete and robust. PHF scores have shown consistent improvement since the inception of the programme.

Member Experience

Mahindra Holidays journey towards excellence in member services is about ensuring high levels of satisfaction in all its interactions with members, thus improving their holistic experience with the Club Mahindra brand. At the core of this is a member centric mindset as well as a drive for continuous improvement through member feedback and engagement at every touchpoint — aided by appropriate technological and digital interventions.

Several initiatives were carried out in 2019-20 to improve member experience at the Companys online assets — both its website and mobile app for members — which contribute to 85% of the bookings. For instance, service request and complaint modules were introduced on the mobile app and website, enabling members to raise their queries digitally. It also introduced the option to book international holidays online, which was earlier done only through the contact centre.

Getting eligible members to avail their holidays has been an important focus area. This includes handholding new members throughout the onboarding process — including proactively assisting them in booking their first holiday. Holiday bookings were affected in the second quarter due to floods and heavy rains in Kerala, Coorg, Himachal Pradesh, Uttarakhand and Maharashtra. Besides, holiday bookings started coming down towards the beginning of March due to the COVID-19 crisis, with March 2020 being most affected with an occupancy of 47%. Despite these events, Mahindra Holidays held onto its performance in terms of unique member holidays. More significantly, even with an increase in inventory and factors mentioned above, the Company achieved an occupancy rate of 80.3% in 2019-20 compared to 83% in the previous year.

All key operational metrics of effective member experience

— be it referrals, product upgrades have shown considerable improvement in 2019-20, despite COVID-19 crisis impacting the performance in March 2020.

Business Excellence

Mahindra Holidays has adopted the principles of Total Quality Management (TQM) under the banner of The Mahindra Way

— the Mahindra Groups integrated approach to promote excellence in all spheres of its operations. The Company has successfully institutionalised quality systems in all critical business functions. Some of the key developments are discussed below:

Promoting a culture of continuous improvement by institutionalising Kaizens as a way of life has been at the centre of the Companys efforts towards business excellence. The impact of these projects has also been amplified by the online portal which acts as a repository and a tool for Company-wide deployment, resulting in important efficiency gains and cost savings. This was taken a step further during 2019-20 with the launch of the i2i mobile app — a user friendly platform for submission of ideas for innovation and sharing best practices, including Kaizens.

Continuous learning is at the centre of our journey towards excellence and the e-learning platform launched last year has played an important role in this regard. In 2019-20, four new e-learning modules were created and over 13,000 certifications were completed.

The Company has also implemented CAPA (Corrective Actions & Preventive Actions) methodology to identify problems by monitoring daily work to arrive at solutions. Considerable progress was made on this front during 2019-20.

Human Resources (HR)

Given the highly specialised nature of the MHRILs business and the large number of locations where it operates, attracting and nurturing the right talent is at the core of its growth strategy. The HR function at Mahindra Holidays is organised into three key areas: customer acquisition, resort operations and corporate functions.

Mahindra Holidays has always focused on building capabilities and skills through targeted learning and development (L&D) interventions. In 2019-20, all the capability building initiatives were focused on three clear objectives:

• Strengthening the basics for the front-line employees. This included (i) Sales Bootcamp — structured one- day intervention for sales executives; (ii) Collections Bootcamp — structured one-day intervention for employees working in receivable management; and (iii) Art of Body Language — customised video module for all resort staff.

• Enabling line managers with skills to conduct classroom and on-the-job skill building interventions for their teams. This included (i) Club Mahindra Drona — a two-days structured programme launched for managers working in resort operations; and (ii) Managers Development Program — a one-day classroom intervention for managers working in customer acquisition and member experience management.

• Promoting growth from within through structured development programs. This include five fast track growth programmes to identify and develop high potential employees for supervisory positions after a rigorous 11-months training including classroom sessions, on-the-job assignments and live projects. Three new programmes under the banner of I-Grow were also launched in 2019-20 in the areas of Happy Hub, Finance and Engineering.

In line with the organisational objective of offering a standardised "Club Mahindra Experience" across different locations and touch points, a lot of impetus was given to create video-based training content on SOPs, behaviours and soft skills. Equal emphasis was given on developing talent from within to meet future requirements. Overall, the organisation recorded an average of 11 man days of L&D effort per employee in 2019-20.

As a customer centric organisation, maintaining high employee engagement levels has been a top priority. During the year, Mahindra Holidays recorded its highest ever levels in both MCARES and employee-as-promoter scores (EPS) - internal

benchmarking exercises within the Mahindra Group. Mahindra Holidays featured amongst the Top 100 Best Companies to work for in India by Great Place to Work Institute.

As on March 31, 2020, there were 5,518 people on the rolls of the Company. Industrial and employee relations remained cordial throughout the year.

Technology and Digitisation

Mahindra Holidays believes that technology plays an active role in providing a competitive edge and contributes directly to performance. This assumes even greater significance in the context of the COVID-19 crisis, where remote and contactless delivery of services will be more important than ever before for efficient day-to-day operations.

The Company has invested significant resources in its Information Technology (IT) architecture and is benefiting from it across all key spheres of its operations — customer acquisition, resort operations, member experience and internal controls.

Maintaining and upgrading digital assets that enable effective member servicing is an important priority. During the year, the Company enabled new products and services under its experience ecosystem on the web and mobile platforms. The Company also upgraded the user interface of the Mobile App which is more intuitive and efficient. Several new services such as credit card standing instructions, automated refunds, real time payment of ASF and more notably, end-to-end automation of the member upgrade process, were also enabled on its web and mobile platforms.

Another thrust area in 2019-20 was using digitisation and analytics to drive better efficiencies. One of the more significant developments in this context was implementation of AI-based resort inventory yield optimization model to accurately predict cancellations and allow revised booking thresholds for better management of inventory and maximise occupancy. This was piloted at a few large resorts in 2019-20 and will be rolled out to other resorts in 2020-21.

The Company continues to invest in its IT and applications infrastructure. During the year, the Company migrated the core business solutions to its own cloud infrastructure for better efficiency and control. In the area of customer acquisition, the Company upgraded its telemarketing and lead management systems. In another development, property management systems at remote locations are now fully integrated to synchronise automatically with the core systems of the Company.

Corporate Social Responsibility (CSR)

Mahindra Holidays has been at the forefront of taking affirmative action and seeks to contribute to the socio-economic wellbeing of the communities that it interacts with in carrying out its business. The Company implements CSR projects directly as well as through implementing partners. As defined in the

Companys CSR Policy, it continues to focus its CSR efforts towards girl child education, skill development, healthcare & sanitation, environmental sustainability, protection of national heritage, art & culture, disaster relief and rural development.

Apart from working with not-for-profit organisations and contributing resources for CSR projects, the Company also encourages community service by its employees by involving them through its Employee Social Options Program. During the year, 2,067 employees volunteered 14,225 person hours on CSR initiatives.

Some of the key CSR initiatives undertaken by the Company in 2019-20 were:

• Education & Skill Development: The Company sponsored the education of 5,000+ girls through the Nanhi Kali project of KC Mahindra Education Trust, which provides academic and material support to underprivileged girls. Through project Gyandeep, a mobile bus delivers comprehensive education programmes for children living on construction sites. This currently reaches an average of 50 children every month.

• Environment: 40,774 trees were planted across 30 plus resort locations during the year as a part of Mahindra Hariyali — an initiative of Mahindra Group for tree plantation — taking the total trees planted to 384,966 since the beginning of the project in 2010-11. Under its Jal Jivan campaign — a major initiative for water conservation and provisioning of safe drinking water launched in 2019-20 — the Company carried out multiple projects for rejuvenation of water bodies, rainwater harvesting, water access and chlorination and installation of RO water purifiers.

• Healthcare and Sanitation: Initiatives included providing mobile medical units for the underprivileged communities at Tungi, Hatgad and Mahabaleshwar and nutrition support to HIV affected people at Varca. To promote health and well-being through strengthening access to quality sanitation facilities, the Company provided household sanitation units to 30 families in Raigad district of Maharashtra. The Company also launched an anti-littering campaign and provided household and community dustbins in Tungi benefiting 160 families.

Box 7: COVID-19 Related Community Relief Efforts in 2019-20

In response to the unprecedented health crisis due to COVID-19, Mahindra Holidays has been supporting communities around its resorts. This includes distribution of hygienic meals / provisions and essential hygiene kits [provisioning of sanitizers and protective equipment such as masks, personal protective equipment (PPE) kits and face shields] to the COVID warriors, daily wagers and other groups around the Companys resorts.


Sustainability is at the core of its business at Mahindra Holidays. The Company is committed to conserve the ecological integrity of its operating locations through responsible business practices and activities such as measurement of carbon footprint, conservation of biodiversity, energy conservation, use of renewable sources, water conservation and waste recycling. These green initiatives undertaken by the Company are aligned to its larger mission of Good Living, Happy Families.

Box 8: MHRILs Sustainability Commitments

Mahindra Holidays has committed to become Carbon Neutral. It is Indias first hospitality company that has signed both RE100 (Renewable Energy) and EP100 (Energy Productivity), a global campaign led by The Climate Group, to achieve this. In doing so Mahindra Holidays has reinforced its commitment to achieve renewable energy and energy productivity targets i.e. run on 100% renewable energy by 2050 and to double the energy productivity by 2030. The Company has also committed itself to the Science Based Target Initiative, which requires it to reduce greenhouse gas (GHG) emissions in line with targets necessary to limit global temperature rise to below two degrees Celsius.

In 2019-20, Mahindra Holidays undertook various initiatives in the areas of solar installations, energy saving, water conservation and waste recycling:

• Solar Installations and Energy saving: Focus

continued to be on installation of solar power and hot water generators. Solar Power is streaming in at 7 of its resorts and 5 more resorts will be added by the end of 2020-21. Outdoor solar lights were installed in landscaped areas. Other energy saving initiatives have been systematically implemented at resorts as a part of its 26 point programme. These included replacing diesel boilers with heat pump for hot water generation in 10 resorts resulting in 67% less diesel consumption as compared to last year, installation of inverter ACs and energy saving BLDC fans.

• Water Conservation: Important initiatives include recycling of water from sewage treatment plants, rainwater harvesting, installation of water saving taps/ fixtures in rooms as well as public areas. Six of its resorts are water positive at the end of 2019-20. Utilisation of rainwater increased considerably in 2019-20 and will be implemented in another 19 resorts by 2024. Water consumption reduced by 17% compared to last year and 50% of total water consumed by the resorts was recycled in 2019-20.

• Waste recycling: The Company embarked on the Zero Waste to Landfill (ZWL) programme last year with its Virajpet resort, which became Indias first ZWL resort.

Three more resorts are expected to be certified as ZWL resorts in 2020-21. The Company is also focused on the installation of organic waste converters, vermicompost systems and biogas which are currently operational at many of its resorts.

Box 9: Sustainability — Awards and Recognitions

• The Bombay Chamber Civic Award for Conservation of Natural Resources & Waste Management under the Sustainable Environmental Initiatives Category.

• Certificate of Merit - Challengers Category by Frost & Sullivan and TERI (The Energy and Resources Institute) at the 10th edition of Sustainability 4.0 Awards for demonstrating effective deployment of Sustainable Development practices within the organisation.

The Company actively participates in the Mahindra Groups initiative for Corporate Sustainability Reporting. The Sustainability Report of the Group is prepared in accordance with the internationally accepted framework specified by the Global Reporting Initiative (GRI). This framework sets out the principles and indicators that should be used to measure and report economic, environmental, and social performance. During 2019-20, 22 resorts participated in sustainability reporting of the Group.


Box 10: Note on Change in Accounting Policies

From April 1, 2019, Mahindra Holidays adopted Indian Accounting Standard (Ind AS) 116 - Leases, which requires the lessee to recognise lease Right of Use (ROU) assets and corresponding lease liabilities in its Balance Sheet for the entire period of the lease. The Company has applied the modified retrospective approach to its existing leases and recognised the cumulative impact of the transition in its books on April 1, 2019. Further, for charging costs to the Profit & Loss Account, actual lease rentals are substituted with amortization of the Right of Use asset as well as a notional finance cost on the lease liability. Although the nature of expenses under leases has changed, this does not impact the Companys business or cash flows.

Mahindra Holidays exercised the option of lower Corporate Tax Rate which brings down the effective tax rate to 25.168% with effect from financial year 2019-20. Accordingly, it has remeasured accumulated deferred tax asset and current tax, which has resulted in a one-time transition impact of 199.7 crore in the Profit & Loss Account for the financial year 2019-20.

Table 1 presents the abridged financial statements of the Company as a standalone entity. To facilitate more accurate comparison with the previous year, the results for 2019-20 have also been presented according to the old standard i.e. without application of Ind AS 116.

Table 1: Financial Information (Standalone)

( in crore)

Ind AS 116

Without Ind AS 116

2019-20 2019-20 2018-19
Income from Operations 977.0 977.0 918.2
Non-operating Income 60.1 59.7 45.2
Total Income 1,037.1 1,036.7 963.4
Operating & Other Expenses 795.5 859.5 811.8
Finance cost 16.0 - -
Depreciation 101.7 50.5 51.4
Total Expenditure 913.2 910.0 863.2
Profit Before Tax (PBT) 123.9 126.7 100.2
Tax Expenses - Ordinary 32.4 33.1 36.3
Profit After Tax (PAT) 91.5 93.6 63.9
Tax - One Time Impact 199.7 197.6 -
Profit After Tax (PAT) post One Time Impact (108.2) (104.0) 63.9
Other Comprehensive Income (Net of Tax) (0.6) (0.6) 739.2
Total Comprehensive Income (108.8) (104.6) 803.1
Diluted EPS before One Time Impact () 6.9 7.0 4.8
Diluted EPS () (8.1) (7.8) 4.8
Cash & Cash Equivalents 780.7 780.7 571.9
Long-term Debt 0 0 0
Deferred Revenues 5,518.7 5,518.7 5,239.3

Standalone Financial Results

• Total Income, which includes both operating and other income, stood at Rs. 1,037.1 crore in 2019-20 under Ind AS 116.

• Income from Operations, which stood at Rs. 977.0 crore in 2019-20 was unaffected by the adoption of Ind AS 116.

? Income from sale of vacation ownership products, which is the largest component of the Companys operating income, grew by 9.9% from Rs. 315 crore in 2018-19 to Rs. 347 crore in 2019-20;

? Annual Subscription Fees (ASF) grew by 11.4% from Rs. 261 crore in 2018-19 to Rs. 291 crore in 2019-20; and

? Resort Income - which includes revenues from F&B, resort activities and rooms - grew by 3.9% from Rs. 220 crore in 2018-19 to Rs. 228 crore in 2019-20.

Total Expenditure was Rs. 913.2 crore in 2019-20 under Ind AS 116 compared to Rs. 863.2 crore in 2018-19, representing a growth of 5.8% during the year. Accordingly, Profit before taxes (PBT) grew at 23.7% from Rs. 100.2 crore in 2018-19 to Rs. 123.9 crore in 2019-20.

Adoption of Ind AS 116 involved substitution of lease rentals amounting to Rs. 64.3 crore with (a) amortisation of Right of Use Asset of Rs. 51.2 crore and (b) notional finance cost of Rs. 16.0 crore on the lease liability. This resulted in a reduction of Rs. 2.7 crore in PBT. Ignoring this impact, PBT grew at 26.4% from Rs. 100.2 crore in 2018-19 to Rs. 126.7 crore in 2019-20 in comparable terms.

As mentioned earlier, the Company exercised the option of lower tax rate during the year which required remeasurement of accumulated tax assets, resulting in a one-time impact amounting to a reduction of Rs. 199.7 crore in Deferred Taxes (Net). Not taking this one-time impact into account, Profit After Taxes grew at 43% from Rs. 63.9 crore in 2018-19 to Rs. 91.5 crore in 2019-20 under Ind AS 116. Accordingly, diluted EPS (before One Time Impact) stood at Rs. 6.9 in 2019-20 as compared to Rs. 4.8 in 2018-19. PAT (post One Time Impact) stood at ( 108.8) crore and diluted EPS was ( 8.1).

Cash balances improved significantly from Rs. 572 crore at the end of 2018-19 to Rs. 781 crore at the end of 2019-20 — primarily due to better management of receivables and focus on getting quality members with higher down payment and lower tenure EMIs. As a result, the liquidity situation of the Company remained comfortable.

The Company has no long-term debt as a standalone entity as on March 31, 2020. Finance Cost of Rs. 16 crore is on account of notional interest on lease liabilities under Ind AS 116.

Deferred Revenues increased from Rs. 5,239.3 crore in 2018-19 to Rs. 5,518.7 crore in 2019-20 — providing considerable visibility on future revenues and improved profitability due to lack of incremental costs.

Table 2: Key Financial Ratios (Standalone)

Ratios Ind AS 116

Without Ind AS 116

2019-20 2019-20 2018-19
Debtors Turnover 0.59 0.59 0.55
Inventory Turnover 6.82 6.82 5.51
Current ratio 2.38 2.54 2.41
Operating profit margin (%) 25% 18% 17%
PBT margin (%) 13% 13% 11%
PAT margin before One Time Tax Impact# (%) 9% 10% 7%
Return on Net worth* (%) 11% 14% 8%

# Profit after tax has been derived after excluding Onetime impact on Tax Expense (Current and Deferred) due to change in Tax rate.

* The net worth has been derived after excluding revaluation reserve of Rs. 737.6 crore and Transition Difference of Rs. 1,402.7 crore.

Table 2 presents key financial ratios for Mahindra Holidays as a standalone entity. As the Company does not have any debt on its standalone Balance Sheet, Debt Equity and Interest Coverage ratios are not applicable and have not been calculated. Further, as mentioned earlier, financials for 2019-20 using Ind AS 116 are not directly comparable with financials of 2018-19. Using comparable financials (without adoption of Ind AS 116) for both the years, changes in financial ratios compared to previous year are not significant, i.e. are less than 25% as defined under the revised SEBI Listing Regulations.

Holiday Club Resorts (HCR)

HCR, Finland, is a material unlisted subsidiary of Mahindra Holidays. With the acquisition of balance 3.53% shares in HCR through its step-down subsidiary Covington Sarl, Luxembourg, during the year, Mahindra Holidays now holds 100% stake in HCR.

Established in 1986, HCR is the largest vacation ownership company in Europe and the largest operator of leisure hotels in Finland. As of March 31, 2020, HCR had 33 resorts of which 25 are in Finland, 2 in Sweden and 6 in Spain. 83% of its business comes from Finland and 17% from Sweden and Spain. The timeshare related business contributes about 54% of its revenues, while the hotel business accounts for the remaining 46%. Its current timeshare membership is about 62,000 families and 1,300 companies. Besides, HCRs Spa Hotels service over 1 million guest visits annually.

Table 3: Summary Financials — HCR

2019-20 2018-19
Total Income 157.33 161.09
EBITDA 6.73 7.79
Profit Before Tax (PBT) 0.26 0.81
Profit After Tax (PAT) 0.14 0.50

Note: As per Finnish Accounting Standard (FAS) Accounts; Figures in € million

During the year, HCRs performance was adversely impacted due to the COVID-19 crisis as March is the peak holiday season in Finland. This affected both timeshare and spa hotel businesses. Table 3 provides summary of financial performance of HCR.

• During the year under review, total income of HCR, which includes turnover and other operating income, stood at € 157.33 million, compared to € 161.09 million in 2018-19.

• Earnings before interest, tax, depreciation and amortization (EBITDA) for the year were € 6.73 million, down from € 7.79 million in 2018-19. Overall, HCR recorded a PBT and PAT of € 0.26 million and € 0.14 million respectively in 2019-20.

• HCR was significantly impacted due to COVID-19 in March which is peak holiday season in Finland. Prior to impact of

COVID-19, HCR had delivered an improved performance till December 2019. Total income of HCR, which includes turnover and other operating income, stood at € 118.46 million, compared to € 114.41 million in 2018-19. Earnings before interest, tax, depreciation and amortization (EBITDA) for the 9 months ended December 2019 were € 4.35 million, up from € 0.86 million in 2018-19.

• HCR has significantly reduced its debt exposure over the years. As on March 31, 2020, total debt on its books stood at € 19.59 million as compared to € 51.7 million in September 2014, when Mahindra Holidays first invested in HCR.

Consolidated Financial Results

For the purpose of consolidation of financial results of the Company, 34 subsidiaries, one joint venture (JV) and one associate as on March 31, 2020 were considered. Table 4 presents the abridged financial statements of the Company as a consolidated entity. To facilitate comparison with the previous year, results for 2019-20 have also been presented according to the old standard i.e. without application of Ind AS 116.

Table 4: Financial Information (Consolidated)

( in crore)

Ind AS 116

Without Ind AS 116

2019-20 2019-20 2018-19
Income from Operations 2,371.9 2,371.9 2,239.0
Non-operating Income 59.3 58.8 56.7
Total Income 2,431.2 2,430.7 2,295.7
Operating & Other Expenses 2,003.2 2,194.6 2,072.8
Finance Cost 79.5 16.3 23.6
Depreciation 247.1 98.2 101.3
Total Expenditure 2,329.8 2,309.1 2,197.7
Profit Before Tax (PBT) 101.4 121.6 98.0
Tax Expenses 35.9 37.8 38.4
Profit after Tax (PAT) 65.5 83.8 59.6
Tax - One Time Impact 199.7 197.2 -
Profit After Tax (PAT) post One Time Impact (134.2) (113.4) 59.6
Other Comprehensive Income (Net of Tax) 3.0 8.4 780.2
Total Comprehensive Income (131.2) (105.1) 839.8
Diluted EPS before One Time Impact (?) 5.1 6.3 4.5
Diluted EPS (?) (9.9) (8.6) 4.5
Cash & Cash Equivalents 85.8 85.8 60.1
Total Debt 861.6 861.6 830.4

• Total Income grew by 5.9% from Rs. 2,295.7 crore in 201819 to Rs. 2,431.2 crore in 2019-20.

• Using comparable estimates without adoption of Ind AS 116, Total Expenditure grew by 5.1% from Rs. 2,197.7 crore in 2018-19 to Rs. 2,309.1 crore in 2019-20.

• Adoption of Ind AS 116 involved substitution of lease rentals with (a) amortisation of Right of Use Asset and (b) notional finance cost on the lease liability. This has adversely impacted the PBT by Rs. 20.2 crore.

• PBT after including share in profit/loss of JV and associate during the year was Rs. 101.4 crore, whereas PAT after deducting non-controlling interest was Rs. 65.5 crore. After accounting for one-time impact due to adoption of lower tax rate, PAT stood at ( 134.2) crore.

• Diluted EPS was Rs. 6.3 in 2019-20, compared to Rs. 4.54 in

2018- 19. After accounting for one-time impact due to adoption of lower tax rate, PAT stood at ( 113.4) crore in

2019- 20 and the corresponding diluted EPS was ( 8.6).

• On consolidated basis, total debt was at Rs. 861.6 crore as on March 31, 2020, as compared to Rs. 830.4 crore at the end of the previous financial year.

Internal Controls

The Company has an adequate internal control system, commensurate with the size and nature of its business. The system is supported by documented policies, guidelines and procedures to monitor business and operational performance which are aimed at ensuring business integrity and promoting operational efficiency.

The Company conducts periodic internal audits in line with an audit plan that is drawn at the beginning of the year and is approved by the Audit Committee. The scope of the exercise includes ensuring adequacy of internal control systems, adherence to management policies and compliance with the laws and regulations of the country. The Companys ERP system has appropriate controls embedded in its processes and systems to reduce the need and reliance for compensating manual controls. These have also been strengthened from time to time.

Internal audit reports are placed before the Audit Committee of the Board of Directors, which reviews the adequacy and effectiveness of the internal control systems and suggests improvements for strengthening them.

Threats, Risks and Concerns

Mahindra Holidays risk management framework consists of identification of risks, assessment of their nature, severity and potential impact, and measures to mitigate them. This framework is in place for adequate and timely reporting and monitoring. Risks are reviewed periodically and updated to reflect the business environment and change in the size and scope of the Companys operations. The Company has a Risk Management Committee consisting of four Directors.

Box 11: COVID-19 — Risks, their Mitigation and Opportunities

The COVID-19 pandemic is causing tremendous disruption, exposing economies and businesses to levels of uncertainty that make it difficult to assess the eventual impact or to chalk- out the timeline for normalcy. However, what is clear is that businesses today face enormous risks, affecting immediate day-to-day operations as well as longer term planning and strategy.

Mahindra Holidays has taken a holistic approach to mitigate these risks. The Company is using best-in-class technology to interact within the organisation, ensure business continuity under lockdown as well as align business processes to remotely service and acquire customers through digital interventions. Measures that ensure readiness to resume operations at resorts when restrictions are lifted have already been discussed in Box 6. The Company is also gearing itself to possible changes in travel preferences: greater demand for domestic holidays, especially those with shorter, drivable distances; need to minimise physical contact; best in class safety and hygiene protocols; preference for outdoor activities with physical distancing — that will feature more prominently in member expectations in a post-COVID world.

Macroeconomic Risks

Indias GDP growth decelerated significantly during 2019-20. The outlook for 2020-21 is even more subdued due to the COVID-19 crisis. These can impact the Companys ability to generate sales and resort income and affect its growth prospects in the near term.

Mahindra Holidays recognises these risks and has reasonable measures in place to mitigate their impact. Some of the COVID-19 related mitigation measures have already been covered in Box 11. The Company believes that its focus on customer acquisition through referrals, brand alliances and targeted digital marketing will help it to partly mitigate risks from the economic downturn. Other initiatives include diversification of product portfolio with new products such as Bliss and GoZest. The management is proactively taking steps to rationalise fixed costs, wherever possible. It is reasonable to expect that the occupancies at resorts will begin to improve through its loyal member base, once the travel restrictions are eased off.

Operational Risks

Operational risks mainly relate to meeting customer expectations in terms of quality of service and maintaining a balance between the inventory of resorts and growth of customers. These assume significance given the long service duration of the key products. As there are multiple choices of locations and seasons, there could be occasions where the first choice of holiday requested by the customers may not be available, which may result in dissatisfaction. Another

operational risk is in the ability to consistently attract, retain and motivate managerial talent and other skilled personnel, especially in a high growth industry with unique characteristics. Further, some of the Companys resorts are located in remote areas and natural calamities such as earthquake, flood, landslide etc. may affect the accessibility of the resort to members.

The Company has invested significant resources in systems and processes to mitigate these risks. Customer satisfaction continues to be favourable and on an upward trend. Regarding room inventory, the Company will continue to be judicious in the use of different options — greenfield projects, acquisitions, expanding inventory at existing locations, leases and inventory arrangements — to meet the expectations of its customers and at the same time maintain a balance between demand and supply. Regarding talent management and retention, the management believes that its HR practices enhance employee engagement and satisfaction to effectively mitigate this risk.

Financial Risks

The Companys business involves significant investments in building resorts for its operations. These expose it to risks in terms of timely and adequate availability of funds at competitive rates to finance its growth. Besides, it offers its customers schemes to finance the purchase of the vacation ownership and similar products, which exposes it to credit risks. The Company is, therefore, exposed to potential risk of non-payment or delayed payment of membership instalments and/or the annual subscription fee by members resulting in higher outstanding receivables.

Currently, Mahindra Holidays has no long-term debt on a standalone basis, and has a strong and stable capital structure to raise money for further expansion, if needed. The Company undertakes comprehensive assessment of the profile of its customers and carefully monitors its exposure to credit risk. Further, several improvements have been implemented in receivables management and collections to reduce credit risks. While there is no currency risk at the standalone entity basis, in respect of the debts in the books of foreign subsidiary companies the underlying assets are also in the same currency. Hence the Company does not foresee any significant forex risks.

Regulatory and Legal Risks

Mahindra Holidays is exposed to regulatory and legal risks. These include cumbersome processes and risks relating to land acquisition, conversion of land for commercial usage and development of properties, environmental clearances, approvals and activities related to development of new resorts. There are also other regulatory and legal risks pertaining to tax proceedings, legal proceedings on properties, customer complaints, noncompliance of regulations including environmental regulations and those pertaining to the hospitality sector. Further, as the Company has investments and operations in different countries, it is also exposed to political and regulatory risks that emanate from its international presence.

Mahindra Holidays has adequate systems and controls in place to reasonably mitigate these risks and minimise instances of non-compliance. The Company also believes that its proactive stance on sustainability will hold it in good stead for future development and growth.


India witnessed a significant slowdown in economic activity during the year. The growth outlook for 2020-21 remains even more subdued due to the COVID-19 crisis. Although a sharp turnaround is expected when the restrictions on economic activity are lifted, there is considerable uncertainty around the timeline for normalcy and the extent of impact.

The travel and tourism sector worldwide will be affected, and India will not be an exception. However, it is reasonable to expect that the occupancies at resorts will begin to improve through its loyal member base, once the travel restrictions are eased off. New member additions will be dependent on consumer sentiment which should gradually improve post the lockdown restrictions getting lifted and resumption of general economic activity in post COVID phase.

Mahindra Holidays solid experience ecosystem, with 100+ resort options and unique membership privileges gives it a distinct competitive edge — be it in terms of suitable holiday options or resort amenities in a post-COVID world or the ability to drive business, once the sentiment improves. The Company

has taken adequate steps in terms of deployment of digital and tech-enabled solutions which holds it in good stead in delivering superior value. And, with its committed teams and strong service culture, it has an unmatched ability to reorient itself to benefit from the emerging opportunities presented by change in travel preferences and expectations of customers.

At this time, when customers are looking for trust, Club Mahindra brand — with member satisfaction at an all-time high — will resonate favourably with them. Besides, the Company has a strong balance sheet with resources at its disposal to tide over the crisis and take advantage of strategic opportunities, in line with its long-term business objectives.

Cautionary Statement

Certain statements in the Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations or predictions may be forward-looking statements within the meaning of applicable securities laws and regulations. Actual results could differ from those expressed or implied. Important factors that could make a difference to the Companys operations include poor macroeconomic growth and consumer confidence, inability to add resorts and increase the inventory of room, cyclical demand and pricing in the Companys principal markets, changes in tastes and preferences, government regulations, tax regimes, economic development within India and other incidental factors.