The company in notes to accounts mentioned that a loss of Rs 164.57 crore in Q4 March was reported on the back of one-time transition impact due to lower tax rate adoption. The company said it exercised the option of Lower Corporate Tax Rate available under Section 115BAA of the Income Tax Act, 1961, as introduced by Taxation Laws (Amendment) Ordinance, 2019. Accordingly it re-measured accumulated deferred tax asset & current tax, which has resulted in a one-time transition impact of Rs 199.7 crore in Profit & Loss account of current quarter and financial year.

Profit Before Tax declined 40.8% to Rs to Rs 41.05 crore in Q4 March 2020 from Rs 69.30 crore in Q4 March 2019.

The company said the member additions and occupancies were adversely affected due to COVID-19 pandemic in March-20. The company added 3,616 members in Q4 March 2020 as against 5,671 members added in the same period last year.

Commenting on the results, Kavinder Singh, Managing Director & Chief Executive Officer, Mahindra Holidays & Resorts India said, “Significant improvement in Profit Before Tax, along with improvement in operating margins despite adverse impact of COVID-19 in Mar-20 (traditionally a peak month) reinforces the robustness of our business model. Our focus on execution excellence has enabled all round improvement in financial performance and our cash position, Rs 781 crore (up by Rs 209 crore from previous year).”

Mahindra Holidays & Resorts India is a leading player in the leisure hospitality industry. The company is a part of Mahindra Group and is the market leader in the business with their famous ‘Club Mahindra'.