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Mahindra Holidays to spend Rs350-400 crore in FY11

Mahindra Holidays to spend Rs350-400 crore in FY11
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First Published: Thu, Apr 29 2010. 06 58 PM IST
Updated: Thu, Apr 29 2010. 06 58 PM IST
Mumbai: Mahindra Holidays and Resorts will spend Rs35-400 crore in FY11 to add 600-700 rooms and apartments, its managing director Ramesh Ramanathan told reporters on Thursday.
“We plan to add 600-700 units out of which 350 are already in the pipeline,” he said .
The firm has Rs100 crore left from its initial public offering last year and would not need to raise additional funds for the capex, Ramanathan added.
In mid-2009, the company raised Rs275 crore through a 9.27 million-share issue.
It has signed agreements to buy three properties in Gujarat and Madhya Pradesh and will have a total of 1,476 apartments across 33 resorts post acquisition.
It has raised average membership fees by 5% in April, its first hike since August 2008.
Earlier on Thursday, it posted a March quarter net profit of R32.21 crore from Rs29.8 crore in the same period a year earlier.
The growth in profit was helped by the cost cutting measures the firm had undertaken.
“Our cost as a percentage of sales has gone down as we are spending less for every sale we get,” Ramanathan said.
Shares of the firm ended up 1.96% at Rs499.8 in a firm Mumbai market.
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First Published: Thu, Apr 29 2010. 06 58 PM IST