The employee benefit expenses were up 897 bps to 37.2% of sales, while other expenses dipped 1784 bps to 36.9% of sales in Q1FY2021 over Q1FY2020.

Other income increased 36% to Rs 19.46 crore compared to Rs 14.27 crore. Interest cost declined 14% to Rs 3.55 crore in Q1FY2021. Depreciation was up 5% to Rs 25.33 crore. PBT moved up 27% to Rs 36.28 crore.

At MHRIL, as on 31 July 2020, the company has reopened 20 Resorts. As members start holidaying, once travel restrictions are eased off, the company expects occupancies to go up. The priority of the company is the health, safety and wellbeing of all employees and its members. The company have carefully designed Club Mahindra "SafeStay" program for resorts, with best in class hygiene and safety protocols, which go far beyond compliance levels.

At Holiday Club Resorts, 30 of 33 Resorts were operational as on 31st July 2020. Domestic travel in Finland has picked up substantially during summer holidays and significant improvements in operational performance in Q2 are expected. The company believes that it has sufficient liquidity and its resilient business model will help it to tide over this difficult period.

Financial Performance FY2020

For the year ended March 2020, sales increased 6% to Rs 977.01 crore. The company operating margins increased 698 bps to 18.6%. As a result operating profits increased 70% to Rs 181.50 crore. Other income moved up 33% to Rs 60.11 crore. Interest cost increased to Rs 15.99 crore compared to Rs 0.02 crore in FY2019. Depreciation increased 98% to Rs 101.67 crore. PBT was up 24% to Rs 123.95 crore. Tax provision were higher at Rs 232.16 crore compared to Rs 36.312 crore, leading to net loss of Rs 108.21 crore.

• The company is sitting on deferred revenues of Rs 5430 crore, which will be recognized over the tenure of membership
• The company has improved cash position to Rs 776 crore, which can support organic growth without relying on external debt
• Receivables stands at Rs 1636 crore providing opportunity for organic growth through securitization
• The company has strong assets base of Rs 1829 crore including land assets of Rs 1129 crore.
• Room inventory increased to 3682 rooms end June 2020.
• The occupancy level was nil in Q1FY2021.
• The company has added new 1270 members in Q1FY2021. The member base rose to 2.59 lakh end June 2020 from 2.58 lakh end March 2020 and 2.48 lakh end June 2019.

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

Commenting on the results, Kavinder Singh, Managing Director and Chief Executive Officer, Mahindra Holidays & Resorts India Limited said, "standalone results reflect the intrinsic strength and resilience of business model, which is significantly different from traditional hospitality sector. Cumulative member base of 258,000+ has ensured steady multiple annuity revenue streams. Timely cost control measures have helped in achieving improvement in operating margins and PAT growth of 47% YOY. cash position remains comfortable at Rs 776 crore."

Further, commenting on European operations he added: "European subsidiary, Holiday Club Resorts' operations in June'20, have started well and delivered positive EBIDTA for the month. At consolidated level, the company have delivered EBIDTA of Rs 49.8 crore and improved EBIDTA margin by 67 bps"

Consolidated Results

The Consolidated turnover is Rs 325.2 crore for Q1FY21 as against Rs 626.1 crore in Q1FY20. The Consolidated EBIDTA is Rs 49.8 crore for Q1FY21 as against Rs 91.7 crore in Q1FY20. The Consolidated loss (after tax) is Rs 32.4 crore for Q1FY21 as against profit (after tax) of Rs 0.8 crore in Q1FY20

Holiday Club Resorts, Oy - Q1FY21 (Under Finnish GAAP)

The Turnover of Euro 12.7 mn for Q1FY21 as against Euro 37.0 mn in Q1FY20. Loss (after tax) of Euro 4.8 mn for Q1FY21 as against loss (after tax) of Euro 1.7 mn in Q1FY20.

Occupancies in excess of 90% in key Resorts have been achieved from mid-June onwards in Finland. This has resulted in positive EBITDA in June at Holiday Club Resorts.