Mahindra Holidays & Resorts India Announces its Results for Q3 & 9M FY23

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Highest ever quarterly MHRIL Standalone, excl. one-offs¹:

· Resort Income at Rs. 91 Crs (+30% YoY)

· Total Income at Rs. 336 Crs (+18% YoY)

· EBITDA at Rs. 99 Crs (+17% YoY)

Consolidated (excl. one-offs²) Q3 FY23 PBT at Rs. 23 Crs (+104% YoY) and 9M FY23 PBT at Rs. 97 Crs (+91% YoY)

Mahindra Holidays & Resorts India Ltd. (‘Company’), India’s leading leisure hospitality provider reported its standalone and consolidated financials for the third quarter ending 31^st December 2022.

Operational Highlights (Standalone) – Q3 FY23

Member Additions

· Member additions at 4,176 up by 13% YoY.

· Membership Sales Value up by 19% YoY.

· Average Unit Realization (AUR) at Rs. 4.5 lakhs³ vs Rs. 4.2 lakhs in Q3 FY22.

· Cumulative member base stands at 2,77,221, with 85% fully paid.

Resorts/Room Inventory

· High resort occupancies at 85%⁴ vs 80%⁴ in Q3 FY22.

· Highest ever Occupied Room Nights (+16% YoY).

· New resorts at Ranthambore (Rajasthan), Koyna (Maharashtra) and Khopoli (Maharashtra) have added 80 Keys⁵ to the existing inventory.

· Total inventory consists of 4,684 rooms across 86 resorts.

Note: 1. Refer Table “MHRIL Standalone one-offs; 2. Refer Table “MHRIL Consolidated one-offs”; 3. Average Unit Realization (AUR) includes Upgrades. 4. Occupancy as a % of operational room inventory; 5. Gross room additions

Standalone Financial Highlights –

Q3 FY23

· Highest ever

o Total Income at Rs. 336 Crs (+18% YoY) excluding one-offs*.

o Resort Income at Rs. 91 Crs (+30% YoY) driven by higher occupied room nights and member spends.

o EBITDA at Rs. 99 Crs (+17% YoY) excluding one-offs*; EBITDA Margin at 29.3% (up 300 bps vs pre-pandemic – Q3 FY20).

· Highest ever Q3 PBT at Rs. 56 Crs (+17% YoY) excluding one-offs*. PBT Margin at 16.7%.

· Cash position at Rs. 1,089 Crs, up by Rs. 71 Crs during the quarter.

9M FY23

· Total Income at Rs. 943 Crs (+26% YoY) excluding one-offs*.

· Resort Income at Rs. 243 Crs (+79% YoY).

· EBITDA at Rs. 268 Crs (+18% YoY) excluding one-offs*; EBITDA Margin at 28.4% (up 500 bps vs pre-pandemic – 9M FY20).

· PBT at Rs. 145 Crs (+17% YoY) excluding one-offs*. PBT Margin at 15.4%.

Consolidated Financial Highlights –

Q3 FY23

· Total Income at Rs. 597 Crs (+4% YoY) excluding one-offs*.

· EBITDA at Rs. 121 Crs (+17% YoY) excluding one-offs*. EBITDA Margin at 20.2%.

· PBT at Rs. 23 Crs (+104% YoY) excluding one-offs*.

9M FY23

· Total Income at Rs. 1,862 Crs (+18% YoY) excluding one-offs*.

· EBITDA at Rs. 380 Crs (+17% YoY) excluding one-offs*; EBITDA Margin at 20.4%.

· PBT at Rs. 97 Crs (+91% YoY) excluding one-offs*.

Commenting on the performance, Kavinder Singh, Managing Director and Chief Executive Officer, Mahindra Holidays & Resorts India Ltd. said, “Our strategy of scaling up room inventory at an accelerated pace, creating exceptional family vacation experiences at our resorts along with growth in high quality member additions and upgrades by existing members has helped us deliver highest ever quarterly Resort Income and Total Income. Profit margins have significantly improved vs pre-pandemic levels.”

Commenting on European operations, he added, “Despite Q3 being a low holidaying season in Finland and high inflation levels along with ongoing geopolitical situation, Holiday Club Resorts has delivered improved performance in Timeshare and Spa Hotel Revenues on a year-on-year basis with higher occupancies than the local hotel industry. Winter holiday season augurs well for higher occupancies in Q4 aided by growing international and domestic travel demand.”

Highlighting Consolidated Q3 performance, he elaborated, “PBT has grown by 104% YoY and EBITDA by 17% YoY, excluding one-offs.”

Note: *Refer Table “Consolidated MHRIL one-offs” for details

MHRIL Standalone (Under Indian Accounting Standards)

In Rs. Crs	Q3 FY23	Q3 FY22	*YoY Gr*	9M FY23	9M FY22	*YoY Gr*
Total Income	363.2	284.5	27.7%	969.2	766.6	26.4%
– Resort Income	91.0	70.0	30.0%	242.8	135.9	78.7%
EBITDA	127.1	85.0	49.5%	294.3	247.0	19.2%
PBT	84.5	48.7	73.5%	171.6	144.5	18.8%
PAT	62.8	36.0	74.5%	127.3	106.8	19.2%

Total Income (excl. one-offs)	335.7	283.6	18.4%	942.6	749.9	25.7%
EBITDA (excl. one-offs)	98.5	84.0	17.2%	267.7	226.8	18.0%
PBT (excl. one-offs)	56.0	47.8	17.1%	145.0	124.2	16.7%

Note: Refer Table “MHRIL Standalone one-offs”

Holiday Club Resorts, Oy (Under Finnish GAAP)

In Euro Mn	Q3 FY23	Q3 FY22	9M FY23	9M FY22
Total Income	32.6	33.4	103.2	88.9
EBITDA	(1.9)	(1.4)	(1.4)	(0.9)
PBT	(3.4)	(2.7)	(5.5)	(5.1)
PAT	(2.8)	(2.2)	(4.5)	(4.2)

MHRIL Consolidated (Under Indian Accounting Standards)

In Rs. Crs	Q3 FY23	Q3 FY22	*YoY Gr*	9M FY23	9M FY22	*YoY Gr*
Total Income	624.4	584.5	6.8%	1,888.6	1,596.0	18.3%
EBITDA	113.0	112.0	0.9%	390.2	352.5	10.7%
PBT	1.3	20.0	-93.4%	93.5	78.8	18.7%
PAT	(13.7)	13.4	-202.4%	57.5	51.8	11.1%

Total Income (excl. one-offs)	596.9	575.3	3.7%	1,862.0	1,571.6	18.5%
EBITDA (excl. one-offs)	120.6	103.2	16.8%	379.6	324.5	17.0%
PBT (excl. one-offs)	23.1	11.3	103.6%	97.1	50.8	91.0%

Note: Refer Table “MHRIL Consolidated One-offs”

MHRIL Standalone One-offs (In Rs. Crs)

MHRIL Standalone – Incomes	Q3 FY23	Q3 FY22	9M FY23	9M FY22
Translation Forex Gain on ICDs to Subsidiaries	24.7	–	23.8	–
Fair Valuation of Investment in Unlisted Company	2.8	–	2.8	–
Interest Income on IT Refund	–	–	–	4.4
Long Term Lease Rent Waivers during pandemic	–	0.9	–	12.3
Total	27.5	0.9	26.6	16.7

MHRIL Standalone – Expenses	Q3 FY23	Q3 FY22	9M FY23	9M FY22
Translation Forex Gain on ICDs	1.0	–	–	–
Short Term Lease Rent Waivers during pandemic	–	–	–	3.6
Total	1.0	–	–	3.6
*MHRIL Consolidated One-offs (In Rs. Crs)*
Other Subsidiaries – Impact	Q3 FY23	Q3 FY22	9M FY23
(Loss) / Gain on exchange fluctuation on Euro Loan	(35.7)	7.8	(14.1)	7.7
Translation Forex Loss on ICDs to subsidiaries	(14.6)		(16.1)

Consolidated – Impact	Q3 FY23	Q3 FY22	9M FY23	9M FY22
Income	27.5	8.7	26.6	24.4
Expense	(49.3)	–	(30.2)	3.6
Net PBT Impact	(21.8)	8.7	(3.6)	28.0