In the second quarter, Mahindra Holidays and Resorts India Ltd.’s earnings fell by 30.7% as a result of rising costs and a decline in sales at its European operations.
According to the company’s exchange filing, the combined profit after tax for the three months ended September 30 decreased from 589.7 million Indian rupees ($4.94 million) to 408.6 million rupees ($4.94 million).
From 5.15 billion rupees in total expenses, it increased to 5.75 billion rupees.
Globally, businesses that produce anything from white goods to hotels have seen their profitability suffer in recent quarters due to rising labour and material prices.
The overall operating income for Mahindra Holidays increased by 9.5% to 5.98 billion rupees. Its Finnish operations saw a decrease in revenue, from 3.21 billion rupees to 3.11 billion rupees.
The corporation had previously stated in July that strong inflation had put unprecedented cost strain on its European operations. 82.77 Indian rupees to the dollar