Mumbai: Mahindra Holidays & Resorts India Ltd on Wednesday reported a 38% rise in June quarter net profit helped by growth in income from new memberships and cost control measures.
The vacation home operator posted a net profit of Rs337.45 million in April-June, compared with Rs243.75 million a year ago.
Total income rose to Rs1.35 billion from 1.14 billion.
“In terms of new membership growth there is an increase in income of about 10% even though we lost on volumes, primarily because the average unit recovery is higher,” managing director Ramesh Ramanathan said.
Recoveries per unit (or apartments offered to members) rose to Rs254,000 from Rs220,000 last year, helped by a price increase last year, he said.
The firm, which operates 27 resorts across India and Thailand, had implemented an average price increase of 12% last October which pushed up its income.
The owner of Club Mahindra also saw an average occupancy level of 83% this quarter, up by 1% from last year, Ramanathan added.
“Last year we had 769 units, this year we have 1,261 units. So there are about 500 units more and we have managed to increase occupancies,” he said.
However, the number of new members added in the quarter fell to 5,399 from 5,742 members last year, down 6%.
Ramanathan also said that effective cost control measures helped boost operating margins to 43.8% this quarter from 37.5% a year ago.
Its sales and marketing expenses declined to Rs329.5 million this quarter from Rs352.51 million a year ago, while employee costs as a percentage of income fell to 11% from 11.8%.
Mahindra Holidays, which listed on the stock exchanges earlier in July, has 98,224 members as of 30 June.
Shares closed down 4.13% at Rs366.85 in a weak Mumbai market.