Mahindra Holidays & Resorts India is all set to increase its inventory and go way above the target of adding 5,500 rooms by FY25, Kavinder Singh, MD & CEO of Mahindra Holidays, told CNBC-TV18.

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“We are definitely likely to exceed the 5,500 mark, and we have already hit 4,715. We added about 116 odd rooms, and we added three resorts therefore we remain very optimistic about growth in our inventory, which will lead to obviously member additions growing stronger, which will lead to very high resort incomes and the occupancies on an expanded inventory base,” said Singh.

Mahindra Holidays and Resorts India announced their quarterly earnings report for the July-September on Wednesday. The company reported the highest-ever member additions of 4397 growing 12 percent compared to the corresponding period a year ago. The net profit declined 30 percent from the quarter that ended September 2021 and stood at Rs 40.8 crore due to increasing costs and a decline in sales at its European businesses.

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Singh added that the second quarter is seasonally a weak quarter but despite that the company performed well in terms of room additions and revenue.

“The best part is that our margins are at about 28 percent EBITDA margins, and 14 percent PBT margins and these are 500 basis points up on pre-pandemic levels by about 500 basis points up for the EBITDA and about 280 basis points for PBT compared to the pre-pandemic level,” he said.

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He added that in October the company saw an occupancy of 82.5 percent making the second quarter the best quarter in terms of occupancy.

“The best part for us has been - October ended up with about 82.50 percent occupancy and we are definitely looking to come closer to 84-85 percent occupancy,” he said.

With that, the company is also planning to expand its business. In September Singh told CNBC-TV18 that the company is planning to acquire properties to add to its inventory.

Shares of Mahindra Holidays and Resorts are trading at Rs 275, up by 0.2 percent from the previous close on the BSE.

Also read: Mahindra Holidays looking at acquisition of resorts: MD Kavinder Singh