Mahindra Holidays’ Q4 Profit Declines Due to International Travel Slowdown

Mahindra Holidays and Resorts India announced a decrease of over 11% in its fourth-quarter profit on Friday. This downturn is attributed to a reduction in demand for international travel, influenced by geopolitical instability and rising expenses.

The company’s consolidated net profit for the quarter ending in March totaled 730.8 million rupees ($8.6 million), a decrease from 823.6 million rupees in the prior year.

Geopolitical uncertainties and escalated international travel costs deterred consumers from planning trips to Europe.

This situation negatively impacted the company, which derives approximately half of its revenue from its international segment, including properties located in Finland, Sweden, and Spain.

Total revenue for its international division, Holiday Club Resorts (HCR), decreased to 39.7 million euros ($45 million) from 41.9 million euros in the previous year.

Increased expenditure on domestic leisure travel, supported by the government’s initiative to position India as a leading global tourist destination by 2030, partially compensated for the decline in international business.

While domestic hotel occupancy experienced a slight dip to 84.6% from 87.3% the year prior, revenue from this sector increased by 5.7% to 4.03 billion rupees during the quarter, fueled by increased spending.

Overall revenue from operations decreased by 2.6% to 7.79 billion rupees, primarily due to a 9% reduction in the company’s international business.

Mahindra Holidays shares, which provides resort and sightseeing packages through its “Club Mahindra” membership and generates income via membership fees, ended 5.4% lower in anticipation of the results.