Mahindra Holidays & Resorts India Limited · NSE:MHRIL
Mahindra Holidays & Resorts India — Q2 FY25 Earnings Presentation
45 slides from Mahindra Holidays & Resorts India's earnings presentation, Oct 25, 2024
Slide 1: Cover letter to stock exchanges
October 25, 2024 MHRIL/SE/24-25/78 National Stock Exchange of India Limited BSE Limited Exchange Plaza, Plot No. C/1, G Block, Floor 25, PJ Towers, Bandra-Kurla Complex, Dalai Street, Fort, Bandra (E), Mumbai - 400 051. Mumbai - 400 001. Symbol: MHRIL Scrip Code: 533088 Dear Sir/Madam, Sub.: Earning
Slide 2: Mahindra Holidays & Resorts India Ltd. Q2 FY25 Investor Presentation
MAHINDRA HOLIDAYS & RESORTS INDIA LTD. Q2 FY25 INVESTOR PRESENTATION
Slide 3: Outline
Outline Highlights – Q2 FY25 Performance 03 MHRIL – Unique & Profitable Vacation Ownership Business 11 – Long-Term Value Creation 18 – ESG Commitments 22 Holiday Club Resorts – Q2 FY25 Performance 23 MHRIL Consolidated – Q2 FY25 Performance 26 Key Trends & Business Environment 28 Financials 31 Histo
Slide 4: Highlights Q2 FY25 Performance
Highlights Q2 FY25 Performance CLUB MAHINDRA ASHTAMUDI KERALA 3
Slide 5: Q2 Performance Snapshot
Q2 Performance Snapshot Membership Sales Value1 Member Base Inventory Rs. 5.04 lakhs (+28% YoY) 3,02,274 5492 keys Average Unit Realization (AUR) Cumulative Member Base Cumulative Inventory Base Rs. 180 Cr (-6% YoY) 3,583 (-27% YoY) 219 keys Sales Value Member Additions Inventory Addition Standalone
Slide 6: Standalone Performance
Standalone Performance PAT grew by 14% YoY Rs. Cr Income EBITDA PAT 12% 13% 14% 371 120 333 105 47 41 Q2 FY24 Q2 FY25 Q2 FY24 Q2 FY25 Q2 FY24 Q2 FY25 Resort performance stable despite disruptions due to inclement weather in certain locations 5
Slide 7: Standalone Performance: Profit Margin expands
Standalone Performance Profit Margin expands EBITDA Margin PBT Margin PAT Margin 50 bps 30 bps 30 bps 32.2% 31.7% 16.9% 17.2% 12.4% 12.7% Q2 FY24 Q2 FY25 Q2 FY24 Q2 FY25 Q2 FY24 Q2 FY25 6
Slide 8: Consistent growth in Deferred Revenue pool
Consistent growth in Deferred Revenue pool 5685 5595 Deferred Revenue 5326 Pool 5083 (Rs. Cr) FY22 FY23 FY24 H1 FY25 Deferred Cost 723 767 807 816 (Rs. Cr) 7
Slide 9: Customer Acquisition
Customer Acquisition Member Additions AUR* (Rs Lakh) Sales Value (Rs Cr) -27% 28% -6% 5.04 193 180 4881 3.95 47 53 3583 146 127 Q2 FY24 Q2 FY25 Q2 FY24 Q2 FY25 Q2 FY24 Q2 FY25 New Membership Sales Upgrades Member Additions through Referral (HFRP) & Digital route at 58% in Q2 FY25 5-year GoZest repla
Slide 10: 3 New Managed Resorts in Q2
3 New Managed Resorts in Q2 Cumulative Inventory base of 5492 keys as of Sep’24 The Bagh, Bharatpur, Rajasthan Banyan Hills, Pavagadh, Gujarat Golden Landmark, Mysuru, Karnataka 9
Slide 11: Ongoing Inventory Addition Projects: 4 Projects/ ~630 keys
Ongoing Inventory Addition Projects: 4 Projects/ ~630 keys Rendered Image Rendered Image Ganpatipule, MH Treehouse Jaipur Ph2 Rendered Image Kandaghat, HP Theog, HP 10
Slide 12: MHRIL Unique & Profitable Vacation Ownership Business
MHRIL Unique & Profitable Vacation Ownership Business CLUB MAHINDRA VARCA GOA 11
Slide 13: MHRIL has created a unique and sustainable Vacation Ownership business
Over the years, MHRIL has created a unique and sustainable Vacation Ownership business and is the #1 Leisure Hospitality player in the country MHRIL Vacation Ownership business consists of .. …with unique competitive advantages Club Mahindra enjoys strong brand equity and is positioned as provider o
Slide 14: Our Business Model is Differentiated
Our Business Model is Differentiated Focus on Family Multi-Product Portfolio serving Spacious Resorts with Vacations diverse consumer needs Larger Apartments • Memorable family experiences • Portfolio approach to help • Members prioritize vacationing o New & popular destinations capture demand acros
Slide 15: Multi-Year Sources of Value Creation in Vacation Ownership
Multi-Year Sources of Value Creation in Vacation Ownership across the Tenure of the Membership Vacation Ownership Income Membership Fee over the entire tenure of membership VO Interest Income Income Annual Subscription Fee (ASF) New member joins Recurring fees Adjusted for inflation Club Mah
Slide 16: Product portfolio has evolved to target diverse customer segments
MHRIL’s product portfolio has evolved over time to target diverse customer segments • MHRIL's product portfolio strategy has evolved significantly to Families Discretionary Spending Young Couples include multiple products of different tenures, which enables Empty Nesters Singles – targeting diverse
Slide 17: Expanding Choice of Destinations available to members
Expanding Choice of Destinations available to members across MHRIL and Holiday Club Resorts (HCR) along with Horizons Exchange Program 33 Timeshare/Spa Holiday Exchange Offers 365-day 5,492 rooms across 120 Resorts + Hotel Program with 409 engagement platform Destinations in for members for access t
Slide 18: Diverse in-resort Experiences
Diverse in-resort Experiences Coco Bike at Acacia Palms Tribal Dance at Gir Onam Celebration Kerala Zip Cycling at Kanha Adventure Rope at Virajpet 17
Slide 19: MHRIL Long-Term Value Creation
CLUB MAHINDRA MANALI HIMACHAL PRADESH MHRIL Long-Term Value Creation 18
Slide 20: Accelerate Inventory Addition
Accelerate Inventory Addition Double Inventory base from ~5,000 to ~10,000 keys by FY30 MHRIL will use a combination of inventory addition routes: A B C D E Greenfield Resorts Brownfield Resort Built-to-Suit Resorts Resort Leases through existing Land Projects Acquisitions with third-party Partially
Slide 21: Horizons holiday exchange program
Horizons One-of-a-kind holiday exchange program for our Club Mahindra members Program offers our members freedom of choice to book an accommodation in any of the partner hotels around the world in exchange for their VO Room nights 2018 470+ 180 Launch Year Partner hotels Destinations (India & Intern
Slide 22: Experience Ecosystem
Experience Ecosystem Club M Select: An exclusive member-only program Travel Planning Lifestyle Experiences Curation of premium products and finest offerings, enabling a luxurious lifestyle Hotels, flights, airport services, packages, Cruises, Dining, Wellness services 365 days a year! weekend stays,
Slide 23: Our ESG Commitments
Our ESG Commitments We are India’s first hospitality company to join the Global campaign for RE100 and EP100. These initiatives are aligned with the core principles of ‘RISE’ and our mission of ‘Good Living, Happy Families’. Carbon Neutrality Net Zero Green Resorts EP 100 RE 100 Biodiversity 01 02 0
Slide 24: Holiday Club Resorts (HCR)
Holiday Club Resorts (HCR) We Create Dream Holidays 23
Slide 25: HCR – A Leading Timeshare Company
HCR – A Leading Timeshare Company HCR’s business consists of .. …with unique competitive advantages Timeshare In Finland, leader in Timeshare owner base Widespread network of Spa resorts with varied experiences 33 Timeshare Destinations in 60,000+ Finland, Sweden & Spain Timeshare owners1 Complement
Slide 26: HCR Performance
HCR Performance Euro Mn Income EBITDA PAT -6% 9% -- 36.6 34.2 1.8 1.6 0.3 0.1 Q2 FY24 Q2 FY25 Q2 FY24 Q2 FY25 Q2 FY24 Q2 FY25 Weak consumer sentiment continues to impact Timeshare sales & In-Resort spending at Spa hotels. Financials are as per Finnish Accounting Standards (FAS) 25
Slide 27: MHRIL Consolidated Q2 FY25 Financials
CLUB MAHINDRA POOVAR MANALI KERALA HIMACHAL PRADESH MHRIL Consolidated Q2 FY25 Financials 26
Slide 28: Consolidated Financials
Consolidated Financials Rs. Cr Income EBITDA PAT 5% 4% -46% 706 672 153 159 21 11* Q2 FY24 Q2 FY25 Q2 FY24 Q2 FY25 Q2 FY24 Q2 FY25 *PAT excluding Forex Impact at Rs 27 Cr (+36% YoY) 27
Slide 29: Key Trends & Business Environment
Key Trends & Business Environment CLUB MAHINDRA KANHA MADHYA PRADESH 28
Slide 30: Indian Hospitality Sector's key metrics
Indian Hospitality Sector’s key metrics Highlights Occupancy ADRs Industry level occupancy of 61% in Aug’24, same as LY Average rates trending higher than LY, Rs 7000 in Aug’24 Evolution of important industry metrics 10000 8900 8700 8500 8400 8300 9000 8200 7600 7600 7700 7700 8000 7400 7200 7100 68
Slide 31: Market Landscape | Emerging Trends & Consumer Preferences
Market Landscape | Emerging Trends & Consumer Preferences Indian hospitality industry is expected to grow at a 10.5% CAGR over the next 3 years. Rise in Leisure Travel Growing Revenue from MICE & Weddings Hotel demand soaring in 2023, mainly due to rise in leisure CY2023 witnessed resurgence of Corp
Slide 32: Financials
CLUB MAHINDRA MASHOBRA HIMACHAL PRADESH Financials 31
Slide 33: MHRIL Standalone Financials
MHRIL Standalone Financials Rs. Cr Resort Income Including all subsidiaries (except HCR) at Rs 77 Cr (+2% YoY) 32
Slide 34: MHRIL Standalone Financials: Profit & Loss Statement
MHRIL Standalone Financials Profit & Loss Statement 33
Slide 35: MHRIL Standalone Financials: Snapshot of Balance Sheet
MHRIL Standalone Financials Snapshot of Balance Sheet 34
Slide 36: HCR Financials
HCR Financials Profit & Loss Statement Segment Revenue Financials are as per Finnish Accounting Standards (FAS.) 35
Slide 37: Consolidated Financials: Profit & Loss Statement
Consolidated Financials Profit & Loss Statement 36
Slide 38: MHRIL Historical Performance
CLUB MAHINDRA MASHOBRA HIMACHAL PRADESH MHRIL Historical Performance 37
Slide 39: Large base of committed members continues to grow
Large base of committed members continues to grow In FY24, Cumulative Member Base is ~2.98 Lakhs with 85% Fully Paid Members Total Member Base 1,99,617 2,18,138 2,35,792 2,43,574* 2,58,336 2,54,431* 2,65,980 2,81,820 2,97,771 2,38,610 2,53,302 2,25,838 1,91,615 2,08,967 1,77,277 1,62,875 Fully Paid
Slide 40: Investment in Room Inventory continues with Higher Occupancy and Operating Cash
Investment in Room Inventory continues with Higher Occupancy and Operating Cash Occupancy 81% 85% 85% 83%* 80%* 72%* 74%* 84% 85% 5,500 5,327 1,600 4,940 1,400 5,000 4,568 1,383 1,200 4,500 4,197 1,172 1,158 3,732 1,000 4,000 940 3,472 3,595 800 3,500 781 3,152 519 600 3,000 2,879 572 413 470 332 33
Slide 41: A Strong and Consistent Performance Track Record
A Strong and Consistent Performance Track Record Total Revenue CAGR: 10% for FY15-19; 8% for FY19-24 PBT CAGR: 23% for FY15-19; 17% for FY19-24 In Crs 1,434 In Crs 1,306 120 241 4 1,170 93 2 214 3 223 1,090 1,094 109 201 207 204 964 44 1,037 1,071* 79 18 30 109 1 89 963 337 168 169 12 93 60 909* 110
Slide 42: Revenue contributions from various streams
Revenue contributions from various streams Revenue Mix 2% 1% 3% 3% 5% 6% 7% 9% 10% 8% 8% 8% 8% 9% 12% 11% 6% 6% Our cumulative 9% 6% 16% 18% member base 17% 19% 12% 18% 25% 24% provides us with 23% 22% multiple annuity 19% 18% 19% 20% revenue streams 32% 29% which are 26% 27% 27% 28% predictable, su
Slide 43: Healthy Profit Margins
Healthy Profit Margins EBITDA Margin PBT Margin 1 2 32% 32% 4 5 21% 1 2 29% 29% 19% 19% 19% 17% 18% 4 5 24% 25% 24% 24% 25% 23% 16% 16% 13% 12% 16% 10% FY15 FY16 FY17 FY18 FY19 FY19 FY20 FY21 FY22 FY23 FY24 FY15 FY16 FY17 FY18 FY19 FY19 FY20 FY21 FY22 FY23 FY24 IND AS 18 IND AS 115 IND AS 115 & 116
Slide 44: Disclaimer
Disclaimer This presentation may contain ‘forward looking statements’ within the meaning of applicable laws and regulations. Investors are cautioned that ‘forward looking statements’ are based on certain assumptions, which Mahindra Holidays & Resorts India Limited considers reasonable at this time a
Slide 45: Contact us: investors@mahindraholidays.com
Contact us: investors@mahindraholidays.com
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