The company's operating profit increased by 6% to Rs 18.75 crore in Q1, 2011-12, as compared to Rs 17.69 crore in Q1, 2010-11. The operating margin of the company fell from 17.38% in Q1, 2010-11, to stood at 14.9% in Q1, 2011-12. This was because of 27.6% rise in costs. The 43.40% increase in costs of sales and marketing (y-o-y) for the Q1, 2011-12 quarter helped boost its sale numbers.
Other income of the company increased by 124% year-on-year to Rs 4.7 crore in Q1, 2011-12. The company's profit before interest stood at Rs 23.46 crore in Q1, 2011-12, against Rs 19.79 crore. However, rise in interest costs by 48% y-o-y hurt its bottom- line growth. Profit before tax stood at Rs 23.41 crore in Q1, 2011-12, up by 18.47% from last year's same quarter.
The basic EPS of the firm stood at Rs 2.02 in Q1, 2011-12, compared to Rs 1.59 per share a year earlier. Mahindra Holidays and Resorts is a leading company in India's leisure hospitality sector and commenced construction of 200 rooms at Virajpet near Coorg during the reported quarter. The room inventory at Gir and Tungi is also under expansion and the company expects to maintain its growth in the coming quarters.