As India is coming out of the pandemic after going through arguably the most difficultperiod that I have seen in my lifetime I am reminded of what Gandhiji had said "Itis my faith based on experience that if one's heart is pure calamity brings in itstrain people and measures to fight it".
Your Company did indeed bring in both the People and theMeasurestofightthepandemic.Theresultsattheendoftheyear exemplify the efforts made rightthrough the year. Recognising the heightened concerns of travellers the Company was quickto partner with Bureau Veritas to implement the highest levels of safety and hygiene atits Resorts. This gave our members and guests the confidence to holiday at the Resorts andyour Company achieved Resort occupancy of 85% in the fourth quarter of F21. Despiteconstraints on face-to-face interaction the sales team added 12000+ new members. TheCompany also achieved the highest ever inventory addition of 465 rooms including a152-room greenfield resort in Assonora Goa.
The tourism and hospitality industries have been among the worst affected by the globalpandemic. Your Company too had to weather a turbulent year in India as well as overseas.Despite these unprecedented challenges your Company's performance stood out amongst itspeers. This is a testament to your Company's unique and resilient business model and theexcellent work done by the Management of your Company. The Company achieved on astandalone basis Profit before Tax of Rs. 169.46 crores (as compared to the previous yearof Rs. 123.95 crores) this is in spite of significant drop in the Resort income due tothe lockdown. This was possible due to cost rationalization initiatives undertaken by theManagement the annuity streams as a part of its business model and the incomerecognition coming from its deferred revenue pool of Rs. 5081 crores reflecting strongfuture revenue visibility which is largely contributed by the fully paid Club Mahindramembers.
In addition your Company has a strong Balance Sheet with zero debt and a large cashpool of Rs. 940 crores.
During the year the operations of the Company's subsidiary Holiday Club Resorts Oy(HCR) Finland were severely affected due to very stringent restrictions on travelimposed by the Finnish Swedish and Spanish Governments the three countries in which itoperates. As you are aware fixed and employee costs in these countries are very highbut the Management of HCR was able to contain the losses through significant costmanagement actions across all areas.
The Finland operations which were severely affected last year are showing clear signsof revival and HCR is witnessing a higher demand for rooms and an increase in room rates.Domestic tourism in continental Europe should grow significantly this year and the companyshould benefit from the same. Further HCR is expected to open a new 190 room resort inVierum?ki one of the most sought-after destinations for sporting holidays close toHelsinki in July 2021.
As your Company moves towards its Silver Jubilee in September'21 I am reasonablyoptimistic about the future. My optimism stems from the fact that post pandemic we aregoing to see a significant increase in domestic tourism particularly families travellingtogether and looking for larger spaces in family-friendly Resorts preferably withindriving distance of their homes. Your Company's Resorts meet all these criteria. The"Club Mahindra Safe Stay Program" with thirty-six of our Resorts certified as"Platinum" by Bureau Veritas and the "Travel with Confidence"initiatives have further added to our member's assurance in choosing to stay with us.
In addition to the strong financial Balance Sheet I consider the Company's membershipBalance Sheet' to be equally valuable and resilient. The Company offers uniqueholiday experiences. The Management team has worked assiduously to engender trust from itsmembers. Over the coming months we expecttravelrestrictionswilleaseasourcountry'svaccinationprogram gathers momentum. This will notonly bring additional resort revenues but also growth in membership. The Management has astrong pipeline for resort additions which will help in meeting this additional demand.
All these factors together with the unique business model and a strong balance sheetwill augur well for the future of the Company.
I would like to compliment the Management and thank all employees for their untiringefforts and complete dedication with which they handled the unprecedented crisis. I alsowant to congratulate the Company for being included in the "Top 50 Best Companies towork for" by The Great Place to Work (GPTW) Institute India and for being chosen asthe "Best place to work in Hospitality" in India.
To you my dear Shareholders a big Thank You for your trust confidence and patiencein supporting the Management. On a personal note my request to you is to please continueto maintain safety protocols and I pray that your families and you continue to stay safeand healthy.
With my best wishes
Arun Nanda Chairman
June 30 2021