Mahindra Holidays net profit goes down by 60 percent
A lower enrolment of members has impacted Mahindra Holidays and Resorts India's top and bottomline of 23.6 percent and 60.6 percent respectively for the first quarter of 2010-11 as compared to previous year's corresponding figures.business Updated: Jul 26, 2010 19:00 IST
A lower enrolment of members has impacted Mahindra Holidays and Resorts India's top and bottomline of 23.6 percent and 60.6 percent respectively for the first quarter of 2010-11 as compared to previous year's corresponding figures.
According to a statement issued by the company here, Mahindra Holidays earned a total income of Rs.101 crore and a net profit of Rs.13.29 crore as against Rs.135.30 crore and Rs.33.74 crore earned during the corresponding period the previous year.
The company has added 3,945 new members thereby taking the total members to 113,829.
An company official told IANS on the condition of anonymity that the company has scrapped the 60 month equated monthly instalment scheme for enrolment membership.
He said the number of members enrolled during the first quarter of the current year is 1,494 lesser than what was enrolled during the corresponding period of the previous year thereby impacting the top line.
"During the quarter, the management initiated a number of measures to strengthen its acquisition process and took various steps to enhance customer satisfaction. These initiatives while impacting the numbers in the short run will benefit the company in improving productivity," Chairman Arun Nanda said.
On the reduction in sales and marketing expenses, he said the focus is now on getting prospective client lead than other advertisement spend.
The company which raised around Rs.176.88 crore from public has spent around Rs.68.73 crore and the balance has been invested in mutual funds.
In continuation with the company's foray into jungle tourism the company plans to have a 25 apartment resort in Ranthambore in Rajasthan.