Mahindra Holidays Reports Growth in Profit Amid Rising Interest Expenses and Non-Operating Income Concerns
Mahindra Holidays & Resorts India has announced its financial results for the quarter ending December 2024, showcasing growth in both Profit Before Tax and Profit After Tax. However, the company faces challenges with rising interest expenses and a significant portion of income stemming from non-operating activities, raising sustainability concerns.
Mahindra Holidays & Resorts India has recently reported its financial results for the quarter ending December 2024. The company operates within the Hotel, Resort & Restaurants industry and is classified as a midcap entity. In this quarter, Mahindra Holidays demonstrated notable growth in its Profit Before Tax (PBT), which reached Rs 15.99 crore, reflecting a significant increase compared to the average PBT of the previous four quarters. Similarly, the Profit After Tax (PAT) also showed positive movement, amounting to Rs 34.84 crore, which is an improvement over the average PAT from the prior quarters.
However, the company faces challenges as well. The interest expense for the half-yearly period has risen to Rs 74.50 crore, indicating a trend of increased borrowings. Additionally, a substantial portion of the company's income, approximately 66.66% of PBT, is derived from non-operating activities, raising concerns about the sustainability of its business model.
Overall, Mahindra Holidays has experienced evaluation changes in its financial metrics, reflecting a complex landscape of growth and challenges.
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