Shares of Mahindra Holidays and Resorts India Ltd. gained sharply up to nearly 9% after the company reported its earnings for the second quarter on Wednesday, October 21.
It reported a net profit of ₹19.95 crore, up 11.8% from the previous year’s figure of ₹17.85 crore. Its revenue increased by 9.3% in the September quarter to ₹784 crore from ₹717 crore last year.
The company’s earnings before interest, taxes, depreciation and amortization (EBITDA) increased 4.4% to ₹159 crore from ₹153 crore last fiscal. However, its margin contracted to 20.33% from 21.29% in the year-ago period.
The company, in its investor presentation, stated that it has a portfolio of 5,762 keys across 106 resorts.
During the second quarter, Mahindra Holidays expanded two resorts, while exiting from six of them, based on guest feedback and ratings. Meanwhile, eight greenfield / brownfield projects that are ongoing are estimated to add an additional 1,000 keys going forward.
Its resorts saw double-digit growth and transformation. The company said its resort revenue increased 15% from last year, while occupancy increased by 220 basis points to 76% in the second quarter.
The company said its sales value increased 6% from last year, led by premiumization and upgrades. It reported higher unit realiaation, with its average unit realisation (AUR) rising 43% from last year.
Shares of Mahindra Holidays and Resorts India surged 8.5% to hit an intraday high of ₹214.9 apiece after reporting their second quarter results. However, after the initial spike, the stock has given up majority of the gains and is now trading 2.3% higher at ₹202.71. The stock is down 35% so far this year.
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