Positive quarter for Mahindra Holidays & Resorts
Mahindra Holidays & Resorts India Limited (MHRIL), India’s leading leisure hospitality provider, has announced its standalone financial results for the second quarter of the 2019 financial year, with positive profit figures despite challenging market conditions.
The accounts up to 31 March 2018, were prepared according to Ind AS 18 where admission fee of 60% was accounted for as income in the year of sale. Government of India vide notification dated 28 March 2018 has mandated that from 15 April 2018, the accounts have to be prepared in accordance with Ind AS 115.
As per this new standard (Ind AS 115), Income from vacation ownership contracts need to be recognised over the tenure of membership and ONLY incremental costs incurred for obtaining the membership need to be deferred over the tenure of the contract. Other costs have to be charged to Profit & Loss for the period.
As per Ind AS 115 on a Standalone basis for the quarter ended 30 September 2018, Total Income is at Rs 222.1 cr and the profit after tax is at Rs 14.5 crs as compared to Rs 13.7 crs in Q1 FY’19
As per Ind AS 115 on a Standalone basis for the half year ended 30 September 2018, Total Income is at Rs 464.4 cr and the profit after tax is at Rs 28.2 crs.
Commenting on the results, Kavinder Singh, managing director and chief executive officer of Mahindra Holidays & Resorts India Limited, said: “Despite lower resort occupancies and income due to natural calamity in Kerala and Coorg, which affected our resort operations in these locations, profit after tax has gone up by five per cent on sequential basis.”
Q2 FY’19 Highlights — Standalone (Ind AS 115- New Accounting Standard applicable from 1 April ’18)
- Member additions at 4,145; up by 11.9% YoY
- Occupancy down at 76% due to floods in Kerala and heavy rains in Coorg, Karnataka
- Total Income at Rs. 222.1 crs
- Profit After Tax at Rs. 14.5 crs up by 5.3% on a sequential basis (QOQ)
H1 FY’19 Highlights — Standalone (Ind AS 115- New Accounting Standard applicable from 1 April ’18)
- Member additions at 8,722; up by 13.1% YoY
- Occupancy at 83%
- Total Income at Rs. 464.4 crs
- Profit After Tax at Rs. 28.2 crs
- Cash balance at Rs 483.7 Crs