Mahindra Holidays & Resorts Q4 results: Margins have improved, says CEO Kavinder Singh
MHRIL Managing Director and CEO Kavinder Singh told Zee Business TV, ''The margins of the company have improved as we have done a transition in AS115 from 1st April, 2018.
Mahindra Holidays & Resorts India Ltd (MHRIL) Wednesday reported standalone profit after tax (PAT) at Rs 14.42 crore in the fourth quarter ended March 31, 2019. The company had posted a standalone PAT of Rs 38.55 crore in the same quarter a year ago, MHRIL said in a regulatory filing. Standalone total income in the period under review was at Rs 252.13 crore. It was at Rs 305.99 crore in the year-ago quarter, it added. The company said year-on-year comparison is not available due to transition to new accounting standard Ind AS 115 effective April 1, 2018. For the fiscal ended March 2019, the company said its consolidated PAT was at Rs 59.57 crore. It was at Rs 132.77 crore in 2017-18.
MHRIL Managing Director and CEO Kavinder Singh told Zee Business TV, ''The margins of the company have improved as we have done a transition in AS115 from 1st April, 2018. With respect to old AS, our our profit before tax margin is 23.7%, while for the whole year its over 20%. Earlier we used to take 60% of the membership income upfront in the same year, while as per the new AS we only consider 4% of income each year."
Singh further added, ''The cost incurred is more or less same but income reflected is comparatively less, which shows our margins on a lower side. While the good news is that the income of respective quarter or year is deffered income and will be reflected in future quarters, without incremental costs, resulting in better margins and profitability in future.''
''Our QoQ or YoY membership additions are important, but cumulative sales of memberships gives us a better image as most of the memberships are yearly based. We generate income through annual memberships, EMI based memberships, food and beverage, hotel and resorts etc. Hence, cumulative member base shows a better image about our overall growth. Our membership addition in last quarter was 5,671 members, which is 42% growth on sequential basis. While 18,377 members were added in the whole year,'' mentioned Singh.
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