Leisure hospitality company Mahindra Holidays & Resorts India Ltd (MHRIL) on Monday (October 23) reported a 48% year-on-year (YoY) dip in net profit at ₹21.3 crore for the second quarter that ended September 30, 2023. In the corresponding quarter last year, Mahindra Holidays & Resorts India posted a net profit of ₹40.9 crore, the company said in a regulatory filing.

In the quarter, total revenue stood at ₹655 crore during the period under review, up 10% against ₹598 crore in the corresponding period of the preceding fiscal.

At the operating level, EBITDA grew 17 percent to ₹136 crore in the second quarter of this fiscal over ₹117 crore in the corresponding period in the previous fiscal.

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EBITDA margin stood at 20.8% in the reporting quarter as compared to 19.5% in the corresponding period in the previous fiscal. EBITDA is earnings before interest, tax, depreciation, and amortisation.

The company recorded the highest-ever Q2 member additions, totaling 4,881, which marked an impressive 11% year-on-year growth. Membership sales value also saw a noteworthy increase, reaching Rs 192 crore, reflecting a 13% year-on-year rise.

Furthermore, the company reported its highest-ever Q2 upgrades, with a total value of Rs 47 crore, showcasing a 15% year-on-year increase. The cumulative member base has now reached 2,89,688, with an impressive 85% of the member base being fully paid.

In terms of resorts and room inventory, the company reported a resort occupancy rate of 77% for the quarter, slightly lower than the previous year's rate of 79%. This dip in occupancy was attributed to adverse weather conditions, including heavy rains and landslides in the Himachal and Uttarakhand regions.

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Despite these challenges, Mahindra Holidays & Resorts remains committed to its growth and development plans. They have commenced construction on a new greenfield project comprising 152 keys in Theog, Himachal, reflecting the company's dedication to expanding its resort offerings.

Looking ahead, the company continues to invest in its future growth, with ongoing capital expenditures amounting to approximately Rs 835 crore across five projects, which will add around 690 keys to its inventory.

Kavinder Singh, managing director and chief executive officer of Mahindra Holidays & Resorts India Ltd, said, "Despite heavy rainfall & landslides affecting resort occupancies in North India, we have delivered the highest-ever Resort Income in Q2. In line with our strategic objective of rapidly expanding the room inventory, we have commenced a new greenfield resort project this quarter, and with this currently, we have 5 projects/ 690 keys underway with an estimated capex of Rs 835 crore."

Shares of Mahindra Holidays & Resorts India Ltd ended at ₹404.65, down by ₹43.45, or 9.70 percent on the BSE.