Growth in income coming from resorts: Mahindra Holidays

Q: Post the listing, you will now be in a more comfortable state to talk about how the full year looks like? What kind of guidance can you share with us?

A: Unfortunately, as a group policy, we don't give guidance. All I would like to say is look at Q1-it has shown 38% growth in PAT and it just proves what I have been earlier telling on CNBC-TV18 that when you have a model of growth cum annuity, this is the type of growth that you are going to see. This is because as time passes, you have more and more people contributing to what we call the annuity stream. Our ASF is significantly higher and so is our resort income, plus you generally track occupancies. On a global basis, taking all our resorts into account, we have had more than 83% occupancy this quarter and if you take our five top resorts, including Munnar, Coorg, Goa etc, we had 90% occupancy on this. The resort income is also substantially higher and that's good news. I think the trend should tell the views that what your future is going to look like but I don't give guidance.

Q: If you were to analyze your net profit performance, which means you could easily do about Rs 140 crore this year. Does that seem like an ambitious target or something that it might over reach?

A: There is no reason for us to do not as good as in Q1. We are hopeful things should look better, so you can do your arithmetic.

Q: What does your current inventory looks like at the end of this quarter?

A: In this quarter we have added something like 200 rooms. As of June 2009, we have about 1,261 rooms this quarter, added about 100 rooms and 27 new resort. The earlier resort was at lower level and this is on the upper level. We have opened a resort near Shimla which has about 67 rooms so about 100 rooms have been added during this quarter.

Q: What kind of new member additions have you seen in this quarter and what kind of run rate you think it might work at over the next couple of quarters?

A: The member acquisitions as compared to the last quarter are actually six percent down in terms of numbers and not in value because the average realization has gone up. That is because in April and June, the economic downturn has not hit us, so as compared to that but on sequential quarters, the member acquisitions are higher than the pervious quarter.