The employee benefit expenses were up 46 bps to 27.0% of sales, while other expenses dipped 742 bps to 51.1% of sales in Q3FY2020 over Q3FY2019.

Other income jumped 38% to Rs 14.92 crore compared to Rs 10.81 crore. Interest cost was up sharply to Rs 4.19 crore in Q3FY2020 from mere Rs 1.17 lakh in Q3FY2020. Depreciation was up 112% to Rs 27.30 crore. PBT moved up 17% to Rs 38.66 crore. An effective tax was marginally lower at 35.5% in Q3FY2020 from 35.9% in Q3FY2019. PAT reported was up 17% to Rs 24.95 crore.

Financial Performance 9MFY2020

For nine months ended December 2019, sales rose 8% to Rs 736.33 crore. The company operating margins increased 617 bps to 18.7%. As a result operating profits increased 62% to Rs 137.83 crore.

Other income moved up 45% to Rs 45.27 crore. Interest cost was Rs 12.29 crore compared to Rs 0.02 crore. Depreciation increased 93% to Rs 75.92 crore. PBT was up 23% to Rs 94.89 crore. Tax provision was Rs 33.89 crore compared to Rs 27.92 crore. PAT reported was up 23% to Rs 61.00 crore.

• The company is sitting on deferred revenues of Rs 5476 crore, which will be recognized over the tenure of membership
• The company has improved cash position to Rs 694 crore, which can support organic growth without relying on external debt
• Receivables stands at Rs 1699 crore providing opportunity for organic growth through securitization
• The company has strong assets base of Rs 1840 crore comprising of 65 resorts including land assets of Rs 1129 crore.
• Room inventory increased to 3652 rooms end December 2019.
• The occupancy level improved to 83.9% in Q3FY2020 and 83.1% in 9MFY2019, which has been impacted due to unprecedented rains and floods in Himachal Pradesh, Uttarakhand, Maharashtra, Kerala and Coorg in Q2FY2020.
• The company has added new 3805 members in Q3FY2020. The member base rose to 2.55 lakh end December 2019 from 2.514 lakh end September 2019 and 2.477 lakh end December 2018.

• 124 branch offices, sales offices & channel partners
• Leads generated through Digital route, Referrals, Alliances, On-ground Events/Activities, Campaigns

Consolidated Results

Q3FY20 Consolidated Profit after Tax is Rs 4.94 crore as compared to net profit of Rs 30.78 crore for the same period last year. 9MFY20 Consolidated Profit after Tax is Rs 32.51 crore as compared to Rs 14.27 crore for the same period last year.

Holiday Club Resorts

For 9MFY20 the Company's material subsidiary, Holiday Club Resorts Oy, Finland (HCR), recorded a turnover of Euro 118.5 mn. (Under Finnish GAAP) The Profit after Tax of HCRO for this period stands at Euro 4.3 million, as compared to Euro 0.9 mn for the same period last year. (Under Finnish GAAP)

• Holiday Club Resorts is the largest vacation ownership company in Europe and the leading leisure travel company in Finland
• A total of 33 resorts - 25 in Finland, 2 in Sweden, 6 in Spain (5 in Gran Canary, 1 in Costa del Sol)
• Mahindra Holidays owns 96.47% of HCR Oy
• 62,000 families and over 1,300 companies own HCR timeshare
• Over 1 million guests visit Holiday Club Spa hotels annually
• 55% timeshare related income, 45% Spa hotel related income
• 80% of business in Finland, 20% in Sweden and Spain
• HCRO has earned a revenue of Euro 41.03 million in Q3FY20
• SPA Hotel turnover increased by 9% to Euro 19.15 million in Q3 FY 20 backed by higher occupancy and increased ARR
• Average occupancy stood at 68% in Q3 FY 20 in Spa hotels; up by 3 bps
• Increase in renting income by 15% to Euro 2.35 million in Q3FY20.
• Operating Profit (EBITDA) in Q3 FY 20 stood at Euro 1.2 million compared to EBITDA of Euro 0.9 million in Q3FY19 due to margin improvement

Income Tax ordinance

On 20 September 2019, the Government of India, vide the Taxation laws (Amendment) Ordinance 2019, inserted Section 115BAA in the Income Tax Act,1961, which provides domestic companies an option to pay Corporate Tax at reduced rate effective 1 April 2019, subject to certain conditions. The Company is in the process of evaluating this option. Currently the Company has not considered the reduced rate in computing the tax liability and deferred tax balances.