BENGALURU: Mahindra Holidays & Resorts (India) Limited (Mahindra Holidays) spent Rs 52.5268 crore (24.03 per cent of Total Income or Tot Inc) towards Marketing and Sales Promotion (S & M) during Q4-2014, which was 1.47 per cent more than the Rs 51.77 crore (27.33 per cent of Tot Inc) during the immediate trailing quarter Q3-2014 and 5.75 per cent more than the Rs 49.67 crore (24.77 per cent of Tot Inc). The company has the brand Club Mahindra.
Note: Rs 100 lakh = Rs100,00,000 = Rs 1 crore = Rs 10 million
Mahindra Holidays S & M spends during FY-2014 at Rs 191.50 crore (24.63 per cent of Tot Inc) was 4.22 per cent more than the Rs 183.74 crore (26.19 per cent of Tot Inc). Over a nine quarter period starting Q1-2012 to Q4-2014, Mahindra Holidays S & M average ad spends has been 25.83 per cent of Tot Inc. While in terms of rupees spent, S & M spends show a slight upward linear trend during these nine quarters, in terms of percentage of Tot Inc, the linear trend is downwards. Similarly, over a three year period starting FY-2012 until FY-2014, the trend in absolute rupee terms has been upward, while in terms of percentage of Tot Inc, the trend is downward. Please refer to Fig 1 and Fig 1A below.
The company reported a PAT of Rs 24.39 crore (11.15 per cent of Tot Inc) in Q4-2014, which was 20.09 per cent more than the Rs 20.31 crore (10.72 per cent of Tot Inc) in Q3-2014, but (-21.15) per cent less than the Rs 30.93 crore (15.42 per cent of Tot Inc) in Q4-2013. In FY-2014, Mahindra Holidays PAT at Rs 94.53 crore (12.16 per cent of Tot Inc) was (-11.63) per cent less than the Rs 106.98 crore (15.25 per cent of Tot Inc) in FY-2013.
Mahindra Holidays Tot Inc in Q4-2014 at Rs218.62 crore was 15.4 per cent more than the Rs 189.44 crore in Q3-2014 and 9.02 per cent more than the Rs 200.54 crore in Q4-2013. In FY-2014, the company’s Tot Inc at Rs 777.52 crore was 10.83 per cent more than the Rs 701.55 crore in FY-2013. Please refer to Fig 2 and 2A below.
The company says that it follows a two-pronged strategy - It provides a variety in holidaying options by rapidly increasing unique location footprint and attempts to enhance service levels and delight the customer at every touch point.
Mahindra Holidays chairman Arun Nanda said, “I am happy to share that the month of March 2014 recorded the highest ever membership sale in the history of the company. We see this as the beginning of the next phase of growth for the company. However a lot remains to be done in the area of cost rationalization and productivity enhancements.”