Mahindra Holidays and Resorts India Ltd — Q4 FY26

Mahindra Holidays and Resorts India Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=X7_TubTDDE8 Published: 2 weeks ago

0:01 1 second Ladies and gentlemen, good day and welcome to Mahindra Holidays and Resort India Limited Q4 FY26 earnings 0:09 9 seconds conference call. As a reminder, all participant lines will be in the listenon only mode and there will be an opportunity for you to ask questions 0:17 17 seconds after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star 10 on your 0:24 24 seconds touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Manoj MD and CEO. Thank you and over to you sir. 0:37 37 seconds Thank you. Uh good evening everyone and a very warm welcome to our Q4 and full year F26 earlings call. On the call with 0:45 45 seconds me today we have Mr. Vimal Agarwala our CFO. Our results and investor presentations are on the stock exchanges 0:53 53 seconds and on our company website and I hope uh you've had a chance to go through them. 0:59 59 seconds Uh as we start this uh call I think it I think for us F26 has been a year of 1:06 1 minute, 6 seconds transformation for the company and on multiple perspectives. uh we had a significant revamp of our offerings and 1:15 1 minute, 15 seconds launched a simplified uh privilege product portfolio called Keystone. That launch happened in 1:22 1 minute, 22 seconds December. U uh it also this one align aligns this aligns with our vision to scale our core business and establish 1:31 1 minute, 31 seconds ourselves as India's largest ledger hospitality player. Uh if I look at the other measure of uh growth in the 1:40 1 minute, 40 seconds business, I think uh our network expansion continues on a good pace. Uh we are expanding inventory while 1:47 1 minute, 47 seconds focusing on quality. During the year we added about 900 keys. Our total inventory today is about 6,228 1:55 1 minute, 55 seconds keys. We added seven managed resorts this year which is uh uh uh uh same as 2:03 2 minutes, 3 seconds last year and completed expansions at five existing properties. Uh this 900 keys is the highest ever in our history 2:12 2 minutes, 12 seconds that we have added and I think as we go into F-27 we are looking to build on this and uh uh and we expect more than 2:21 2 minutes, 21 seconds thousand keys to be added in F27. Uh during the quarter we added three resorts Dapoli uh and then a resort in North Goa and Chikmagal in Karnataka. 2:34 2 minutes, 34 seconds uh the other side of the equation is about ongoing projects. We have three ongoing uh green field projects, green 2:41 2 minutes, 41 seconds field brownfield projects and a land bank of almost 500 acres. So uh we have ample opportunity for future expansions. 2:50 2 minutes, 50 seconds uh preconstruction which is design and so on and so forth has been initiated for another five resorts on these uh 2:58 2 minutes, 58 seconds land parcels which will collectively add more than 600 keys uh in the next few years. Uh the other thing which I want 3:06 3 minutes, 6 seconds to talk about is the multi-year upgrade of our resorts. Uh and I think from a timing perspective we are timing these 3:14 3 minutes, 14 seconds closures with the non- peak seasons. Um we've already transformed about 100 keys this year. I think the planned upgrades 3:22 3 minutes, 22 seconds in going into next year this is on the own resorts is 300 plus keys in the next year. Uh the last bit is about we have 3:31 3 minutes, 31 seconds been talking about letting go of keys which are suboptimal. uh during the year we surrendered about 500 keys and as 3:40 3 minutes, 40 seconds this will continue into the next two or three quarters as we sharpen the quality of our portfolio and uh hopefully by the 3:47 3 minutes, 47 seconds end of uh uh F27 we should be largely done with the portfolio rationalization and I think uh 3:57 3 minutes, 57 seconds then the true picture in terms of the growth in terms of inventory will come through. Uh the other thing which is 4:04 4 minutes, 4 seconds happening is that uh these are improving availability meaningfully. Uh I think uh 4:10 4 minutes, 10 seconds uh and that is driving a strong wave of member upgrades. Upgrade value was up 33% year on year which is members who 4:20 4 minutes, 20 seconds are current members are upgrading to a uh either better duration or better plan 4:27 4 minutes, 27 seconds within the same duration and uh that is up 33% yearonear this quarter. Uh we are 4:34 4 minutes, 34 seconds also seeing uh robust momentum in referral and digital and both these channels now are at about 69% of uh uh 4:44 4 minutes, 44 seconds the total customer acquisition compared to 63% in quarter 4 this last year. Uh if you look at the other metric which we 4:52 4 minutes, 52 seconds track is sales value. Sales value is about 160 crores which is uh as you know this doesn't come directly into the P&L. 5:01 5 minutes, 1 second This is advertised over the life of the membership. Uh and that is at 162 crores this quarter. This is the new sales plus 5:10 5 minutes, 10 seconds upgrades. And to me this this number is uh now starting to grow uh from this quarter onwards. uh if I look at the 5:20 5 minutes, 20 seconds other metric around uh premiumization uh our AUR is now at 14 lakhs if I include 5:27 5 minutes, 27 seconds the uh uh upgrades otherwise it's about uh almost close to five lakhs give or 5:34 5 minutes, 34 seconds take uh on just the new sale basis which is again a healthy increase of more than 30% in AUR so both metrics around 5:43 5 minutes, 43 seconds overall as well as new sales is increasing and we had always talked about a very selective approach to 5:49 5 minutes, 49 seconds member acquisition and uh focusing on uh the right kind of uh uh right kind of 5:59 5 minutes, 59 seconds target uh segment for our membership. Uh overall at a net level this is including 6:05 6 minutes, 5 seconds cancellations. We added 1,144 new keystone members. Our overall membership base is roughly constant at 6:14 6 minutes, 14 seconds about 3 thou 3 lakh 4,000. Uh the other thing is about our technology journey. I think there are several initiatives 6:22 6 minutes, 22 seconds across the guest journey uh where we are using AI and technology. Uh some of the key examples are that uh we have a 6:30 6 minutes, 30 seconds digital platform for consistency from a sales perspective. We have uh implemented a booking recommendation 6:37 6 minutes, 37 seconds engine which has helped us focus on uh managing uh uh uh in inbound demand for 6:44 6 minutes, 44 seconds rooms. Uh there are some elements of paperless check-ins which have been implemented and an integrated system for 6:53 6 minutes, 53 seconds capturing customer feedback and improving uh on uh how do we become more personalized and uh more focused based 7:01 7 minutes, 1 second on the data we have on most of our customer behaviors. So I think this is helping us create more engaging and 7:08 7 minutes, 8 seconds curated experiences for our guests. Uh the other thing is all of these have led to uh a strong uh uh utilization of 7:18 7 minutes, 18 seconds about 80% and uh doubledigit resort revenue growth this quarter. Uh the other thing I must mention is despite 7:25 7 minutes, 25 seconds the ongoing LPG crisis uh which has impacted some of the industry on uh the 7:33 7 minutes, 33 seconds ability to serve customers on the FNB front. uh we were able to provide that 7:40 7 minutes, 40 seconds all of the menu options with minimal disruption and this was because of our long-standing commitment to sustainability and we had invested in 7:48 7 minutes, 48 seconds electrification and solar power in many of our resorts and I think we we have we had accelerated these efforts also early 7:56 7 minutes, 56 seconds into the crisis and to me I'm very happy to say that we have the ability to swing across uh fuel types and sources of 8:06 8 minutes, 6 seconds energy and continue to deliver uh uh uh our offerings without any uh without any 8:15 8 minutes, 15 seconds disruptions and uh interruptions. So that's something which uh was an event which happened uh and we are able to 8:22 8 minutes, 22 seconds respond very very quickly. uh on the numbers I think while women will talk more uh the standalone profit uh 8:31 8 minutes, 31 seconds excluding one-offs grew 22% yearonear uh and a margin expansion of 220 basis points uh I will also touch upon our 8:40 8 minutes, 40 seconds European subsidiary uh and I think there I think we did see uh we did see uh uh 8:48 8 minutes, 48 seconds some impact because of uh weather conditions in Finland. there was no snow 8:53 8 minutes, 53 seconds in a month and a half or so and uh that impacted uh uh people coming in as well 9:02 9 minutes, 2 seconds as uh uh we saw some early summer come through. Uh the other thing which happened during the quarter is uh 9:10 9 minutes, 10 seconds overall from a credit perspective I think there were some uh rejections 9:16 9 minutes, 16 seconds which were very high on some of the new sales. uh now we are onboarding other 9:23 9 minutes, 23 seconds banks and other partners which should rectify that situation uh as we go along. Uh to conclude for the quarter I 9:32 9 minutes, 32 seconds think uh uh we uh we have made very good progress on our India business uh and uh I think we are in the right direction. 9:41 9 minutes, 41 seconds uh but if I look at the European business, I think uh there is a set of initiatives which we have to work upon in the coming years to actually look at 9:51 9 minutes, 51 seconds uh uh uh to actually look at uh improvements there. Uh the last point is 9:58 9 minutes, 58 seconds more in the standalone books. Again uh recognizing uh the various geopolitical 10:05 10 minutes, 5 seconds situations and the economic situation in Finland, we took an impairment in our standalone books of about 234 crores. 10:14 10 minutes, 14 seconds This is obviously a one-off. Uh with that the uh the current uh holding value 10:21 10 minutes, 21 seconds of the business in the India books is uh now zero. uh and uh this only impacts standalone and does not impact 10:30 10 minutes, 30 seconds consolidated. With that, I'll ask Vimmerl to expand a bit more on the numbers. Thank you. 10:37 10 minutes, 37 seconds Thank you manoj and hi good evening everyone. I'll get into details so far as financials are concerned. Let me 10:44 10 minutes, 44 seconds first call out MHR standalone Q4 highlights. Our total income was 407 cr. 10:51 10 minutes, 51 seconds uh within that operating income was up 4.3% and resort income grew by about 11%. 10:58 10 minutes, 58 seconds IITA was 142 cr which again was up 8% on a Y basis and our IITA margin also expanded by more than 180 pips to 34.9%. 11:10 11 minutes, 10 seconds This quarter we have taken an impairment charge as Maro mentioned of rupes 234 crores towards equity investment in Maicius entity driven by business 11:20 11 minutes, 20 seconds outlook. Excluding this one-off charge our PAT was at 55.4 crores. Our cash position continues to be healthy at 11:28 11 minutes, 28 seconds about 1446 cr as on 31st March 2026. 11:34 11 minutes, 34 seconds So far as consolidated Q4 highlights are concerned, our income was at 844 crore 11:41 11 minutes, 41 seconds up by about 5% by basis and the IITA was 221 crores with an IITA margin of 26.2%. 11:49 11 minutes, 49 seconds PAT was at 41.5 cr including forex impact excluding oneoff impact Q4 console pad stands at 15.3 crores. 11:59 11 minutes, 59 seconds Moving on to fullear financial performance at a at a standalone level total income is 1613 cr 4% resort income 12:09 12 minutes, 9 seconds grew by 12% on a Y basis a bit for full year was 36.7% versus 31.8% 8% in F25 an improvement of 12:19 12 minutes, 19 seconds 5 percentage points reported PAT for full year was 5 crores however if we exclude the one-off charges then our PAT 12:28 12 minutes, 28 seconds was 240 crores plus which is up 22% on a Y basis at consolidated fular level despite our 12:38 12 minutes, 38 seconds international operations impacted by geopolitical headwinds a slowdown in Finnish economy and adverse weather condition during the year profit excluding one of remain remained stable. 12:48 12 minutes, 48 seconds Our total reported PAT for F26 was 67 crores. However, if we exclude one of items primarily labor code and forex 12:56 12 minutes, 56 seconds movement, the PAT will be 136 crores for F26 versus 126 crores in FY25. 13:04 13 minutes, 4 seconds PAT excluding one of uh grew by about 2% versus last year. Uh these were a few 13:12 13 minutes, 12 seconds key numbers on the financials. I'll request if you can open the floor for further discussion please. Thank you. 13:20 13 minutes, 20 seconds Thank you very much sir. 13:22 13 minutes, 22 seconds We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchstone telephone. 13:31 13 minutes, 31 seconds If you wish to withdraw yourself from the question queue, you may press star and two. 13:37 13 minutes, 37 seconds Participants are requested to use handset while asking a question. 13:41 13 minutes, 41 seconds Ladies and gentlemen, we'll wait for a moment while the question queue assembles. 13:49 13 minutes, 49 seconds First question is from the line of Deepak Saha from Aika Institutional Equities. Please go ahead. 13:57 13 minutes, 57 seconds Hi. Uh thanks for the opportunity and congrats on good execution on the standalone side. So my first question is uh when I look at your numbers 14:05 14 minutes, 5 seconds especially on the resort occupancy side I mean in a challenging quarter like this when we had so many you know geopolitical implications so what is 14:13 14 minutes, 13 seconds heartening to see 83% kind of occupancy but what we understood during the quarter on the luxury side leisure side there have been quite meaningful 14:20 14 minutes, 20 seconds cancellations so just trying to um because of this you know war environment just trying to understand uh is it like our dependency on foreign guest is less 14:29 14 minutes, 29 seconds or we executed the quarter well despite I mean foreign dependency which led to 82% kind of an occupancy. Uh just few thoughts on that. 14:39 14 minutes, 39 seconds So Deepak first of all I think our dependency is less on foreign guests. Uh so if I look at our foreign guest uh 14:47 14 minutes, 47 seconds impact it is a very very small number uh during the quarter. uh and so compared 14:55 14 minutes, 55 seconds to probably uh some of the others in the industry that's one thing in our model which is uh largely domestic because of 15:04 15 minutes, 4 seconds the uh occupancy being led by members um and typically what we have seen is that 15:12 15 minutes, 12 seconds uh we have been hovering at high occupancies for both uh for both members 15:18 15 minutes, 18 seconds and non-members uh put together and that's something which uh is is uh in a 15:25 15 minutes, 25 seconds way I would say uh I think a feature of the model uh and uh that is and this one 15:34 15 minutes, 34 seconds is actually on the increased uh room count if you compare it to some of the previous quarters. So in that sense it 15:42 15 minutes, 42 seconds is uh absolute value terms. It is uh probably something which uh uh which we 15:50 15 minutes, 50 seconds are uh inherently in our model. Uh and uh the last one is that uh obviously we 15:57 15 minutes, 57 seconds are seeing a shift from member to non-member. Non-member occupancy also continues to show steady growth uh uh as we look at the occupancy stats. 16:08 16 minutes, 8 seconds You got it. And it's very hard to know. 16:10 16 minutes, 10 seconds And another thing is last couple of I mean last three four quarters we have seen consistent expansion in a better margin on the standalone side but driven 16:18 16 minutes, 18 seconds by reduction in marketing and rental other expenses. So going ahead since we have already uh you know capitalized a 16:26 16 minutes, 26 seconds lot on the marketing side and rental and other expenses. So how should we think of going ahead? Will this expansion 16:33 16 minutes, 33 seconds continue or will we be entering into more of a stabilization craze as far as margins are concerned on the standalone side? 16:42 16 minutes, 42 seconds Yeah. So firstly clarifying on uh what drove this improvement uh I think there were multiple measures around cost of 16:51 16 minutes, 51 seconds acquisition for sure. We also looked at our practices on collection cost overall uh and that has helped. Uh so I think 17:00 17 minutes there are multiple drivers there. I think as we look into the future uh some of the easier ones in terms of uh 17:09 17 minutes, 9 seconds getting the benefits are lower but I think if you if you look at how we are looking at the next 12 months uh I think 17:16 17 minutes, 16 seconds uh the combination of continued focus and bringing down overall acquisition 17:23 17 minutes, 23 seconds costs uh as well as increase in resort revenues uh will contribute uh 17:29 17 minutes, 29 seconds positively to margins uh uh the only factor I would say as you look at F-27 17:37 17 minutes, 37 seconds is our treasury income could potentially drop uh because as we do spend on capex 17:44 17 minutes, 44 seconds and this I will probably mentioned earlier also as we look into F27 so our operating side of the profit we do 17:52 17 minutes, 52 seconds expect the trajectory to continue um uh now all this is given the current conditions if if anything changes in 18:00 18 minutes terms of uh potentially the long-term impacts on India which which at least we are not seeing at this point that could 18:07 18 minutes, 7 seconds change but that's the way to think of uh uh how profits going forward 18:14 18 minutes, 14 seconds got it and and on the on the uh new uh subscription that we launched uh that was uh our keystone package uh last 18:23 18 minutes, 23 seconds quarter I understand we had limited period this was the full first quarter uh in terms of the feedback and the response that you're getting so earlier 18:30 18 minutes, 30 seconds my understanding is we saw kind of 15 20% increase in a year given by keystone. Now now this quarter what was 18:37 18 minutes, 37 seconds the uh you know effect in terms of uh what what was the effect in terms of incremental benefit coming from keystone and uh the changes in updates. 18:47 18 minutes, 47 seconds So if you look at just new sales AUR I think new sales AUR has jumped up 18:53 18 minutes, 53 seconds roughly 20%. So it's holding that number which we had mentioned u in December. So that's something which is happening and 19:02 19 minutes, 2 seconds uh that is led by couple of things. So one is uh uh potentially uh we are 19:09 19 minutes, 9 seconds seeing more more of the the 10-year product selling than the mix is sh the mix for us uh for us the largest product 19:18 19 minutes, 18 seconds was the five-year product now the largest product is the 10ear product uh and so that has helped overall AUR uh 19:26 19 minutes, 26 seconds and uh there are other such changes but I'll wait for some more time because this is just the first 3 months but clearly trending in the right direction and holding that improvement in AUR. 19:39 19 minutes, 39 seconds Got it. Thank you, sir. Uh just one last question before I call that. 19:43 19 minutes, 43 seconds Sorry to interrupt. Mr. Saha, may I please request you to rejoin the queue, sir? Thank you. 19:50 19 minutes, 50 seconds Ladies and gentlemen, in order to ensure that the management is able to address question from all the participant in the question queue, please restrict yourself 19:57 19 minutes, 57 seconds to two questions per participant. Should you have a follow-up question, please rejoin the queue. 20:04 20 minutes, 4 seconds Next question is from the line of Jay Parasa from 3PIM. Please go ahead. 20:11 20 minutes, 11 seconds Yes. Hello. Am I audible? Yeah, we can hear you. Yes. Go ahead. 20:15 20 minutes, 15 seconds Yeah. Thank you for the opportunity. So, just a couple of questions. Um, just going back to our vision day statement 20:22 20 minutes, 22 seconds of uh tripling our revenue uh over the decade. Just trying to understand the growth implications from here going 20:30 20 minutes, 30 seconds forward. uh if I just uh do a back of the envelope of calculation it implies around 17 18% revenue growth given uh 20:40 20 minutes, 40 seconds the member addition has been quite uh has been quite stable it's been around 1%. So from a revenue growth point of 20:48 20 minutes, 48 seconds view how should we think over the next 3 four years what what will drive revenue growth for the company going forward? 20:56 20 minutes, 56 seconds Uh so uh first of all we had said uh 3x during the decade so the baseline I I don't know whether that corresponds to 17%. 21:07 21 minutes, 7 seconds So, so I think uh uh I think it will be my calculation if I remember correctly it'll be uh low teens kind of number in 21:17 21 minutes, 17 seconds India. Uh and we had built something in Finland. Uh so so that's how we had reached that number if I if I remember 21:25 21 minutes, 25 seconds correctly I don't have uh but it won't be in the 17 18% range. uh however on profit side I think uh we had said that 21:34 21 minutes, 34 seconds that's something which might be a slightly higher number as we go forward from point to point so what we had said 21:41 21 minutes, 41 seconds was u that in the initial period maybe treasury income falls but as we shift 21:48 21 minutes, 48 seconds the model I think we would see that uh pointto-point profit growth would be uh 21:55 21 minutes, 55 seconds very healthy uh going forward I think that's the broad structure we talked about. Sure. Sure. 22:03 22 minutes, 3 seconds Just just following up on that because uh the the point on the standalone business being that uh VO income and ASF 22:12 22 minutes, 12 seconds income is mostly linked to member addition and resort income I I believe is the one where you have a benefit of 22:20 22 minutes, 20 seconds both FIDs and means non-members and members. So how how should one think over the next couple of years since our 22:28 22 minutes, 28 seconds member to inventory room ratio is now below 52 uh uh how do you think that will uh grow over the next couple of 22:35 22 minutes, 35 seconds years and potentially by FI30 how how should we think about that? 22:41 22 minutes, 41 seconds So uh the way to think about it is a large proportion of incremental growth given. So let me kind of recap what we 22:48 22 minutes, 48 seconds said right. So we we said that we are focused on uh getting higher quality members with higher AUR and uh uh I 22:58 22 minutes, 58 seconds think and we are coming off a base of uh much higher member addition. So we are seeing that kind of slowdown which is 23:06 23 minutes, 6 seconds happening in in terms of the uh revenue growth from membership and ASF. uh the 23:14 23 minutes, 14 seconds increment the incremental growth which we were talking about was really looking at how do we uh get to more resort 23:23 23 minutes, 23 seconds revenue as you correctly said and within that I think there will be a non-member revenue push which will happen because 23:30 23 minutes, 30 seconds considering that we are keeping aggregate membership flattish uh I think 23:37 23 minutes, 37 seconds our member to room ratio will continue to improve so there will be aggregate availability ility for members as well 23:44 23 minutes, 44 seconds as non-members and that will then reach to the number where uh we we feel that uh uh that the growth will come in from 23:54 23 minutes, 54 seconds that direction. Uh from a uh uh utilization perspective because that's the other thing which I got asked many 24:02 24 minutes, 2 seconds times. Uh this quarter we are able to showcase that utilization uh we are able 24:08 24 minutes, 8 seconds to manage at 80.7 or 81%. So uh I think so what's happening is even as the memberto- room ratio is now 50 I think 24:18 24 minutes, 18 seconds uh the utilization slack is being picked up by the non-member revenue streams and uh so uh so that's the way to think of 24:26 24 minutes, 26 seconds this kind of uh growth buildup. 24:31 24 minutes, 31 seconds Sure. Just one last question on the business. I know we've taken uh an impairment here. 24:40 24 minutes, 40 seconds Uh any views around the same on FI27? What is our views around this? 24:47 24 minutes, 47 seconds So uh uh uh J I think uh see obviously there was an element of uh somewhat 24:56 24 minutes, 56 seconds below par uh quarter because of I think the vagaries mostly around the weather and some of the credit conditions 25:04 25 minutes, 4 seconds changing. And what's happening is if you look at Finland I think given the slowdown we are we are actually seeing u 25:12 25 minutes, 12 seconds that uh people are tending to save more rather than spend uh so I think uh so the big surprise is actually the weather 25:21 25 minutes, 21 seconds if because and that's specifically in Finland in fact our canaries and Sweden operations continue to do better than 25:29 25 minutes, 29 seconds last year u the other thing is if I look at as we look at F-27 7 I think there are multiple things which we are looking 25:37 25 minutes, 37 seconds at. So one is of course uh uh the the the the credit situation we are 25:44 25 minutes, 44 seconds onboarding new partners which should actually help uh in terms of uh conversion of sales 25:51 25 minutes, 51 seconds because I think what's happening is uh quite a few uh people are not getting 25:58 25 minutes, 58 seconds loans uh in the to buy the product and uh as you know some of these economies uh they do depend on credit and that's 26:06 26 minutes, 6 seconds something we onboarding uh new partners that should happen in Q1 Q2. Uh the other thing is about uh really thinking 26:14 26 minutes, 14 seconds about uh how do we optimize in terms of the costs uh and then clearly uh I think 26:21 26 minutes, 21 seconds this is the year we might start looking at longerterm strategic options for the business and that that's a more 26:28 26 minutes, 28 seconds longerterm kind of solution but that's what we are focused on right now. uh and 26:34 26 minutes, 34 seconds uh uh I think uh needless to say any situation change in uh whether it's a 26:41 26 minutes, 41 seconds Ukraine war and currently what's happening geopolitically will be positive for Finland but I'm I'm not kind of building that in into anything I say right now. 26:52 26 minutes, 52 seconds Sure. Thanks and all the best. Thank you J. Thank you. Thank you. 27:00 27 minutes Next question is from the line of Shan Patani from SG Securities. Please go ahead. 27:09 27 minutes, 9 seconds Hi man. Uh good evening. Uh I had a few questions. Uh so the first one is on the uh AUR that we saw you know the rise 27:18 27 minutes, 18 seconds that we saw in AUR is that uh so lot of it pretty much comes from the upgrades. 27:25 27 minutes, 25 seconds So I'm trying to understand you know how much of juice do we have left in there or was this quarter like a one-off 27:32 27 minutes, 32 seconds because of the keystone launch and you know pretty much lot of people uh you know like sort of a frontloading kind of 27:40 27 minutes, 40 seconds an effect and that'll you know taper off as uh you know time passes. uh if you could just give some uh sense on that or 27:48 27 minutes, 48 seconds you know how how long do you see these upgrades continuing in terms of the population that we have uh eligible for upgrades? 27:56 27 minutes, 56 seconds That's a great question Shan. So, so I think uh uh I would say that we have also been positively surprised by the 28:06 28 minutes, 6 seconds adoption of keystone by our current member base because that's what these upgrades are and I think uh what we have 28:14 28 minutes, 14 seconds had heard is that the simplified because we have eliminated a lot of rule sets uh 28:20 28 minutes, 20 seconds we have offered uh breakfast as a standard offering because that used to be one of the requests we have introduced of concier service. So many 28:29 28 minutes, 29 seconds of those things are finding a lot of resonance. Uh and to me that's something which is a very good sign. Uh so that 28:37 28 minutes, 37 seconds and as you rightly said that is contributing to the so that's why I gave the other number if I remove uh upgrades 28:45 28 minutes, 45 seconds also our base new AUR is also up 20%. uh and uh uh that also is a very good sign, 28:54 28 minutes, 54 seconds right? So, so we are actually seeing both both the engines firing. Uh I I I do feel that uh based on whatever we are 29:04 29 minutes, 4 seconds hearing and seeing from the uh resorts because a lot of these upgrades happen at the resorts. uh I think uh the 29:13 29 minutes, 13 seconds momentum ideally should continue uh unless of course there are events which happen but I think that's what I would 29:20 29 minutes, 20 seconds bet on. So if you look at the last four quarters uh I think it's been a consistent trend that upgrades were in 29:28 29 minutes, 28 seconds Q1 about 56 crores uh and in Q4 they are about 93 crores and so it's been a 29:36 29 minutes, 36 seconds constant journey of upgrade uh going up and I think uh given that we have more options now so we are giving season room 29:44 29 minutes, 44 seconds size and tenure all as options for upgrades it is giving the customers to choose what is the right product for 29:52 29 minutes, 52 seconds them and that is also contributing positively to upgrade. 29:57 29 minutes, 57 seconds Got it. Got it. That that's helpful. Uh so my second question was on the uh resort revenue. We've seen like a pickup 30:05 30 minutes, 5 seconds you know even though uh you know we've seen like a stagnant occupancy as such. 30:11 30 minutes, 11 seconds So like I'm just trying to understand we we break it down into like FND wine and liquor and then room rentals. How much 30:17 30 minutes, 17 seconds of this comes from the FND wine and liquor section versus the room rentals? 30:23 30 minutes, 23 seconds because room rentals would pretty much you know contribute like uh to the you know back back filling the occupancy 30:31 30 minutes, 31 seconds that is opened up due to due to the non uh due to the members right so like the FND and the wine uh break up if that is 30:39 30 minutes, 39 seconds available like in terms of growth uh that will be helpful uh so u I mean this kind of growth is 30:48 30 minutes, 48 seconds probably has to be driven by room revenues itself so the the way to think of is we have expanded capacity and with 30:57 30 minutes, 57 seconds on that expanded capacity there are two things happening. One is uh uh member 31:04 31 minutes, 4 seconds probably given that we are flattish on members the absolute member occupancy in 31:12 31 minutes, 12 seconds terms of room nights is the same uh and so actually as a percentage it is declining and that is being picked up by 31:19 31 minutes, 19 seconds non-member uh and that is contributing to room revenue growth and that then translates into FNB and other growth. So 31:27 31 minutes, 27 seconds the predominant component is room revenue uh and I think uh uh we are 31:33 31 minutes, 33 seconds optimizing uh across uh both both uh member and non-member segments uh using 31:40 31 minutes, 40 seconds a combination of technology as well as uh resort-wise kind of uh trends around uh what has been the historical member 31:49 31 minutes, 49 seconds preference. Uh and that's that's working for now and that's something which will continue to evolve. 31:57 31 minutes, 57 seconds Got it. Got it. So just following up on that is uh you know we're looking at uh just like lower member additions uh as 32:05 32 minutes, 5 seconds we've passed through this year and then most of the marketing and customer acquisition expenses are you know put in 32:12 32 minutes, 12 seconds the other expenses line item but that if I compare with LA March last year it's like pretty much you know just pretty 32:20 32 minutes, 20 seconds much the same 162 crores versus 160 crores on the standalone. So where are we you know like in terms of customer 32:28 32 minutes, 28 seconds acquisition cost like what is you know holding the other expenses constant I would have expected some benefit over 32:34 32 minutes, 34 seconds there in terms of lower marketing costs for like lower number of customers that you're adding now. 32:41 32 minutes, 41 seconds So uh I think uh on marketing cost there are two three things. So there is a keystone launch. So of course uh there 32:48 32 minutes, 48 seconds was some expenses towards that uh which we did which has come in uh part very small amount probably in Q3 and then 32:58 32 minutes, 58 seconds some amounts in Q4 uh uh I think uh so that's that's one factor but more importantly the philosophy here as we go 33:07 33 minutes, 7 seconds forward and that's what I said is focusing on the metric of COA and not absolute cost which means that I think 33:16 33 minutes, 16 seconds we do expect uh at a gross level uh given uh that we have the new product and what is going uh what is the 33:24 33 minutes, 24 seconds response of the market we do expect u scaling up member additions not to the extent from the previous year but 33:33 33 minutes, 33 seconds definitely compared to what is happening uh in the last two quarters and that should contribute to a percentage COA 33:42 33 minutes, 42 seconds because the idea is that how do you uh continue uh optimizing from a percentage 33:49 33 minutes, 49 seconds perspective and not so much from an absolute perspective. 33:55 33 minutes, 55 seconds Mhm. Got it. Got it. That's very helpful. And the last question. 33:58 33 minutes, 58 seconds Sorry to interrupt Mr. Gatani. May we please request you to rejoin the queue, sir. Sure. Thank you. 34:06 34 minutes, 6 seconds Next question is from the line of Nandan Madiala from East 72 Capital. Please proceed. 34:14 34 minutes, 14 seconds Yeah. Hi, thanks for taking my question. 34:16 34 minutes, 16 seconds So, I just wanted to understand as non-member uh uh you know revenue 34:23 34 minutes, 23 seconds uh is expected to probably do better given that we are adding so much group inventory. What is the channels that we 34:32 34 minutes, 32 seconds will look to sell that inventory through? Is it the same or are we looking to do more on that front and if you can give some color on that? 34:42 34 minutes, 42 seconds So there the channels are uh ex very different right so so if you look at how do we think about uh non-member 34:51 34 minutes, 51 seconds uh channels I think obviously there are uh the travel agents whether online or offline uh then there is uh uh there is 35:00 35 minutes corporate as a channel and then there is the social and uh wedding and then there is the uh website which we are 35:09 35 minutes, 9 seconds developing right now uh as another thing So I think uh so they are very different and mutually exclusive uh channels which 35:17 35 minutes, 17 seconds we are developing. So there is no connection between the channel which sells memberships uh and the channel 35:24 35 minutes, 24 seconds which sells uh fit except maybe at the corporate level where uh there are some 35:30 35 minutes, 30 seconds unified products uh for corporates which could incorporate uh for example we have 35:38 35 minutes, 38 seconds a product which uh allows corporates to buy uh points in bulk and then distribute as rewards and recognition to their employees. 35:48 35 minutes, 48 seconds So those could be common but otherwise it's all separate. 35:52 35 minutes, 52 seconds So are we looking to go sort of the traditional direct route as well given that you know if adding thousand rooms 36:01 36 minutes, 1 second we are sort of creating space for 52,000 members uh which obviously looks uh like a tall 36:09 36 minutes, 9 seconds order. So the percentage will move towards non-member and we might have to have more aggressive marketing on that 36:18 36 minutes, 18 seconds front as well. Right? Uh that's that's where I'm sort of coming from. 36:24 36 minutes, 24 seconds So uh and and uh so clearly that's the direction we are going in uh in terms of uh so that's number one. Number two, as 36:32 36 minutes, 32 seconds we look at F-27, uh there is a spend which we will do on uh relaunching the Clubm brand. Uh and I 36:40 36 minutes, 40 seconds think what we are doing now is actually putting together a campaign which which allows that thing to happen in terms of 36:50 36 minutes, 50 seconds uh and the timing could be uh maybe about Q2 or or Q3. uh and so that will 36:58 36 minutes, 58 seconds then uh incorporate some of the uh some of the uh brand related expenses for 37:05 37 minutes, 5 seconds both channels because I think it's it's more focused on the entire relaunch of of the club Mahindra brand and that's 37:14 37 minutes, 14 seconds something which I think we will see an increase uh a reasonable increase in 37:20 37 minutes, 20 seconds both those quarters as we spend on uh the full full uh plethor of marketing 37:27 37 minutes, 27 seconds activities. Uh also currently also we are incurring marketing costs on on fit 37:34 37 minutes, 34 seconds as well as uh on uh uh uh member sales and that's some of that is already in the baseline. 37:45 37 minutes, 45 seconds Yeah. Thanks a lot. Thanks. Uh all the best. Thank you. Thank you. 37:53 37 minutes, 53 seconds Next question is from the line of sukid batil from eyesight private limited. 37:58 37 minutes, 58 seconds Please proceed. Good evening to the team. Uh I have two questions. The first question is Mr. But is uh I just want to understand how do you plan to deal with 38:07 38 minutes, 7 seconds international operations given volatility and demand headwinds in Europe. uh and what me measurable 38:14 38 minutes, 14 seconds outcomes do you expect from digital initiatives like key in terms of member engagement and retention that's my first 38:23 38 minutes, 23 seconds question thank you so those are two questions so I'll try to answer them uh in two parts u so so 38:32 38 minutes, 32 seconds the first one is as I said on international operations there is a set of activities around credit availability which we're trying to address through 38:41 38 minutes, 41 seconds more partnerships uh there is obviously from a uh uh overall perspective I think uh we are 38:49 38 minutes, 49 seconds looking to see how we can uh really focus more on some of the areas where uh these challenges are not so severe for 38:57 38 minutes, 57 seconds example there's Sweden there is caneries u but uh as I said the sentiment there is is not so positive and that's 39:06 39 minutes, 6 seconds something which uh we'll have to look at uh in terms of d-risking of Because on the cost side there are initiatives 39:14 39 minutes, 14 seconds which we are taking uh which will minimize the impact of uh any adverse and that's something which will uh come 39:22 39 minutes, 22 seconds through the course of the year. Uh and lastly I think uh from a forex perspective u I think uh we are 39:31 39 minutes, 31 seconds currently carrying a net exposure net liability exposure uh on on the euro uh 39:38 39 minutes, 38 seconds and uh at least from a perspective of some measures around how do we uh think about it I think those could be actions 39:48 39 minutes, 48 seconds which will be planned in the course of this year. Um and to me u the current 39:54 39 minutes, 54 seconds call is that a large portion of the uh euro appreciation against the rupee is already in the numbers. So uh I think 40:03 40 minutes, 3 seconds the current view is that it might not be something which might be a sharp moment but we are ready to react if if any such 40:13 40 minutes, 13 seconds movement comes uh in the coming year. uh on your second question around digital initiative uh and how does it really 40:22 40 minutes, 22 seconds impact from a member engagement perspective and then specifically on keystone uh I think uh uh I I would 40:31 40 minutes, 31 seconds again bunch it into two. If I look at keystone uh for example today we are offering digital upgrades which are 40:40 40 minutes, 40 seconds completely with zero intervention right uh so if if you are a nonkeystone member 40:46 40 minutes, 46 seconds you can actually go to our website and potentially upgrade yourself uh and that's uh today it's a very small 40:55 40 minutes, 55 seconds portion I I would think it is probably u maybe 3 to 4% uh today uh but that's 41:02 41 minutes, 2 seconds something which we actually encouraging members because the plan is much much simpler and we feel that that might be a 41:08 41 minutes, 8 seconds way to engage. Second is uh I think uh from a new sales perspective u given that it's a new launch I think the 41:17 41 minutes, 17 seconds entire sales engine is still probably getting familiar with the way to think about the product because one of the 41:25 41 minutes, 25 seconds things we are seeing is that uh we are engaging with the little bit of a different target segment and uh uh 41:32 41 minutes, 32 seconds typically what what we seeing is that uh the conversion times uh compared to the older product is is a little bit longer. 41:41 41 minutes, 41 seconds Uh I think so it's a mixed thing between uh probably a lot of focus on training 41:47 41 minutes, 47 seconds and uh familiarity from a sales perspective as well as a customer 41:54 41 minutes, 54 seconds familiarity because uh uh for example even if I look at our referral channel a lot of members are saying that they want 42:02 42 minutes, 2 seconds to first understand the product before they refer someone. So these are all the launch stages. I think we had expected 42:10 42 minutes, 10 seconds some of this to happen and I think those will start settling in. Uh I think uh on the other side for engagement I think 42:18 42 minutes, 18 seconds there is a lot we are doing. For example, I spoke about in my opening statement that today we have a 42:25 42 minutes, 25 seconds integrated view of the customer using an AI sentiment meter. And what it does is all interactions across multiple 42:33 42 minutes, 33 seconds channels is now available in a single place and available to the uh front 42:42 42 minutes, 42 seconds office in the resorts and also to all the agents who and potentially we're creating it for the salespeople also. So 42:50 42 minutes, 50 seconds all three will have probably a sentiment meter for the customer and so our ability to personalize offerings. uh 42:58 42 minutes, 58 seconds this this we launched in December so it's about 3 months 4 months and I think the rollout is happening as we speak and 43:07 43 minutes, 7 seconds to me that's going to be the core of our uh tech enabled engagement for customers at at various touch points. 43:18 43 minutes, 18 seconds Thank you mal question to Mr. Otherwise uh with cash reserves exceeding about I think 1,400 crores how is capital 43:27 43 minutes, 27 seconds allocation being planned between new resort development debt reduction and shareholder return. I just want to understand your plan of action on this. 43:34 43 minutes, 34 seconds Thank you. 43:37 43 minutes, 37 seconds So fundamentally 1,500 crores which we have got uh we do have a plan in place to ensure that we are deploying it for 43:44 43 minutes, 44 seconds the right priorities and when I say priorities there are three four things which are uh which are at front and 43:51 43 minutes, 51 seconds center. One is the overall customer experience and therefore resorts where we can get into transformation or 44:00 44 minutes renovation which leads to better customer experience and feedback is something which we are prioritizing on a very small base of about 100 rooms 44:09 44 minutes, 9 seconds transformation or renovation which we did. We do have plans to invest or move that number at least by say 3x in F27. 44:18 44 minutes, 18 seconds That's one. The second one is that we have two resorts right now where significant investments are going on. 44:24 44 minutes, 24 seconds One is in Tho which is Himachel. The second one is Gpati Kul which is Maharashtra. Uh both these resorts are uh at a decent stage of construction. 44:33 44 minutes, 33 seconds Gpati Koh should we should be going live by quarter 3 of this year. Uh apart from this we do have about four or five land 44:43 44 minutes, 43 seconds parcels where the room keys will be about 600 plus. We are right now at uh either approval stage or pre-esign or 44:51 44 minutes, 51 seconds design stage. So all these three will get into construction phase very soon. 44:56 44 minutes, 56 seconds Uh apart from it there are critical land acquisitions. As you would have seen one announcement today of we acquiring about 50 acres land parcel in Chika Mangalore 45:05 45 minutes, 5 seconds and the whole idea is to get to the right locations uh by investing where we believe that uh it will lead to a 45:12 45 minutes, 12 seconds long-term uh uh uh say operating margin equative investments that's the key 45:19 45 minutes, 19 seconds priority right now. uh so far as our international part is concerned we do have some leverage but as of now we 45:26 45 minutes, 26 seconds don't have any plans to sort of infuse for the equity in the short run at least. Thank you and uh best wishes. 45:35 45 minutes, 35 seconds Thank you. Thank you. 45:39 45 minutes, 39 seconds Next question is from the line of Davit Sa from SA family office. Please proceed. 45:46 45 minutes, 46 seconds Hi sir. Uh congratulations on a big set of numbers. Uh I had two questions. Uh 45:53 45 minutes, 53 seconds first is uh on the business. Uh I see that uh we have a very prolonged time since we have been facing challenges in 46:01 46 minutes, 1 second this business. So uh how confident are we that we can turn this around? Uh and 46:08 46 minutes, 8 seconds uh secondly that the impact of this business on our books is huge. So I was just trying to understand that how 46:16 46 minutes, 16 seconds should we look at it in terms of uh the both revenue as well as okay. Uh secondly uh on the India business I 46:25 46 minutes, 25 seconds wanted to know uh the so much of cash balance and we are trying to deploy it 46:31 46 minutes, 31 seconds but uh how do we go about actually looking at it at uh which of the properties or which of the land passes 46:39 46 minutes, 39 seconds are actually going to be operating margin accative to us. Thank you. 46:46 46 minutes, 46 seconds So, uh let me take the second question first. Uh I think if you if you look at uh all the land parcels we have, I think 46:54 46 minutes, 54 seconds uh many of them have been acquired a long time back. So from a cost perspective it's it's a minimal cost uh overall uh in terms of capital invested. 47:07 47 minutes, 7 seconds uh and uh so I think the way we are going about it is we are looking at uh 47:15 47 minutes, 15 seconds the overall irr and the projections and uh making those calls uh and the and to 47:23 47 minutes, 23 seconds me the way to think of it is if you look at what's happening today in the market 47:29 47 minutes, 29 seconds I think people are looking for newer experiences newer locations uh 47:36 47 minutes, 36 seconds looking for being enveloped in nature and many of uh if not all all of our 47:43 47 minutes, 43 seconds land parcels pretty much fit the bill and to me with increased connectivity. 47:50 47 minutes, 50 seconds So for example we do have as an example we have uh almost 100 acres in uh cast 47:58 47 minutes, 58 seconds plateau which is where the flowering happens in front of the lake. Now today it's about 4 hours 4 and 1/2 hours from 48:07 48 minutes, 7 seconds Mumbai give or take. Uh but with if the missing link comes in that's going to probably reduce by 30 to 40 minutes. So 48:15 48 minutes, 15 seconds it becomes 3 and a half to four hours and that's I think we are seeing more and more people inclined to take those holidays and actually reach those 48:24 48 minutes, 24 seconds locations. Uh similarly uh so a lot of locationational things which where is 48:31 48 minutes, 31 seconds the nearest catchment in terms of uh potential guests and then uh uh many of 48:38 48 minutes, 38 seconds these places I think if you if you see what's the trend which is happening is that if if the resort is good and if the 48:46 48 minutes, 46 seconds location is good and if there is not really a benchmark around and which could also be potentially true and if it 48:53 48 minutes, 53 seconds is in the right segment I think people are actually willing to pay the value for such a vacation and that's something which is a 49:02 49 minutes, 2 seconds consistent trend uh across in the industry and that's something we are also uh kind of betting on that as we 49:10 49 minutes, 10 seconds build this brand uh in the future that's what we are going to focus on 49:20 49 minutes, 20 seconds uh on I don't know if you have a followup otherwise I'll go to your first question. No no on the first. 49:26 49 minutes, 26 seconds Yeah on the first question I think as I said that uh I think it is uh obviously 49:33 49 minutes, 33 seconds uh uh compared to if I look at overall international ops right including the 49:40 49 minutes, 40 seconds forex loss etc. I think this year uh I think there are you can equally split it 49:46 49 minutes, 46 seconds roughly between forex loss as well as operational uh kind of uh degradation in in Finland. 49:56 49 minutes, 56 seconds And to me the forex loss is something which uh is anybody's guess but I would guess that it's it's probably more in 50:03 50 minutes, 3 seconds the nature of a sudden move which I think might uh probably not repeat itself so strongly. And as I said that 50:12 50 minutes, 12 seconds if if we don't feel that way then we'll have to move in terms of uh limiting exposure uh in at that point so that the 50:20 50 minutes, 20 seconds loss doesn't happen. Uh I think on the operational side uh I think it's it's not a very easy solve. I think it will require as I said operational actions. 50:31 50 minutes, 31 seconds we have to move towards u more channels in terms of credit which will improve sales uh as well as uh potentially this 50:39 50 minutes, 39 seconds is the year that we will evaluate what do we want to do from a long-term partnering strategic perspective I think 50:47 50 minutes, 47 seconds uh that's that's where we are today uh thank you for the detailed answers uh I will turn back to you 50:56 50 minutes, 56 seconds thank you thank you next Question is from the line of Santil Kumar from Joint Capital Service Limited. Please proceed. 51:08 51 minutes, 8 seconds Uh greetings sir. I'm audible. We can hear you. 51:13 51 minutes, 13 seconds Yeah. Yeah. Thank you sir. Thanks for the opportunity. Uh in your earlier response you mentioned that uh 51:21 51 minutes, 21 seconds management is taking long-term partnership strategy. Could you kindly share some more clarity on what specific 51:28 51 minutes, 28 seconds steps know the management is considering in HR or operation? 51:33 51 minutes, 33 seconds No, I think there is no nothing to report today. Sentinel uh I'm just saying that in F27 we because I had mentioned in one of the 51:41 51 minutes, 41 seconds previous calls that this is not the time to do a strategic review of the business. I think F27 is the time to do a strategic review of the business and 51:50 51 minutes, 50 seconds assess what are the long-term potential partnerships or others which we can think of which will uh which will be uh 51:59 51 minutes, 59 seconds probably beyond the ambit of operational improvements only. 52:05 52 minutes, 5 seconds Oh, absolutely. Thank you. That's it from Thank you. Thank you. 52:14 52 minutes, 14 seconds Next question is from the line of Naven from I thought PMS. Please go ahead. 52:20 52 minutes, 20 seconds Uh hi uh good evening. Am I audible? You can hear me? Yeah, we can hear you. N go ahead. 52:27 52 minutes, 27 seconds Yeah. Yeah. First of all, congratulations on a great numbers. Uh I just wanted to get some more color on the signature stocks. So do you have any 52:35 52 minutes, 35 seconds updates to share on that? Are we on track? Uh anything like to highlight? 52:41 52 minutes, 41 seconds So uh I think uh uh I think we had said that somewhere by end of in this uh F-27 52:48 52 minutes, 48 seconds we would be uh getting ready. I think as we have gone into the details around uh 52:54 52 minutes, 54 seconds uh what we need to do. I think uh I think that I don't think it'll come in F-27. It's probably going to get pushed 53:03 53 minutes, 3 seconds to F-28. Uh and that's because it's our first offering and uh we have actually 53:10 53 minutes, 10 seconds put some more thought into what exactly needs to be done in terms of some of the design elements. Uh and that's that's so 53:20 53 minutes, 20 seconds it's a little bit of a delay compared to where we said we would be. uh having said that I think uh we have a lot more 53:29 53 minutes, 29 seconds clarity in terms of the next set of locations also. So we are actually actively prospecting two or three more. 53:37 53 minutes, 37 seconds Uh so we are making progress on that front but but the first one I don't think will come in F27 as I said maybe it goes to F28. 53:47 53 minutes, 47 seconds Got it. Got it. Uh and then the next question uh is going to be on uh HCR uh the end operation. So uh I just want to 53:55 53 minutes, 55 seconds get your uh get the understanding of like so I'm assuming you have this great understanding of the business so far right like uh about the seasonality 54:04 54 minutes, 4 seconds about the the kind of customers that you've taken all so uh like you know over the past two three quarters do you think anything that you've maybe 54:12 54 minutes, 12 seconds understood needs some kind of revision like not from the strategy perspective but from understanding the market itself like do you think to fundamentally go 54:20 54 minutes, 20 seconds back to the drawing board and rethinking certain things like uh from that perspective itself or like are you still of the belief that this is a great 54:28 54 minutes, 28 seconds business to be in like that's what I'm trying to understand. Um so so I think uh there are I would say that if I look 54:36 54 minutes, 36 seconds at the last 3 to 6 months uh I think incrementally uh I think uh the consumer behavior has 54:46 54 minutes, 46 seconds changed towards more savings uh because of the uncertaintity uh and that is obviously causing some 54:53 54 minutes, 53 seconds sort of a uh uh depression in in in terms of our ability to get our product across. 55:01 55 minutes, 1 second Uh the other thing is that uh from a perspective of uh uh I think the weather vagaries is an unpredictable one and uh 55:10 55 minutes, 10 seconds I don't think anybody would have been able to see it. So that is one difference if I'll even look 3 months back to now. Uh those are the two major 55:19 55 minutes, 19 seconds changes. Uh I wouldn't want to comment on uh uh I think as I said uh before also I think F27 is when we will do a 55:28 55 minutes, 28 seconds detailed review of the business. uh and including whether uh uh what are the various options uh from a strategic 55:36 55 minutes, 36 seconds perspective. uh but as of now I think the state of the business needs action on certain fronts which is the one two 55:44 55 minutes, 44 seconds things I spoke about how do we address more partners for credits etc and how do we think about uh really uh thinking 55:53 55 minutes, 53 seconds about optimization uh I think those are the two immediate actions yeah I'm I'm really sorry just a small followup to this thing uh what I was 56:01 56 minutes, 1 second hoping to understand is is there any particular reason we took the impairment in this quarter like so the underperformance or the uncertainty has 56:08 56 minutes, 8 seconds been there for a while, right? So I just want to understand that aspect. 56:12 56 minutes, 12 seconds Oh. Oh yeah. So if if that was the question, I think the way we felt was that given uh uh because our expectation 56:20 56 minutes, 20 seconds was about uh uh that uh the uncertainty around geopolitics will go down but I 56:27 56 minutes, 27 seconds think it's prolonging and I also we have another conflict which has started which could have some impact. So we said that 56:34 56 minutes, 34 seconds this is the appropriate time to look at the business from a purely an accounting charge perspective and reflect it 56:43 56 minutes, 43 seconds correctly. Now if if some of these situations changes 12 months later we could be having a reversal but that's 56:50 56 minutes, 50 seconds for a future date. This is to reflect our current view of the business and the fair value uh of and the carrying value 56:58 56 minutes, 58 seconds in the books is what I think you should look at it. 57:02 57 minutes, 2 seconds Awesome. Yeah. Yeah. Thanks a lot for the clarification ma'am. Have a nice day. Thank you. Thank you. 57:09 57 minutes, 9 seconds Next question is from the line of TV Vivekumar from Westp Research and Advisory LLP. Please go ahead. 57:17 57 minutes, 17 seconds Sir, am I audible? Yes, please go ahead. Yeah. 57:22 57 minutes, 22 seconds So, thanks for the opportunity. My question is on how should we think about member edition? I understand you improved the quality of the kind of 57:29 57 minutes, 29 seconds member edition and the non-member. So what could be the occupancy rate? You will try to maintain occupancy rate at 8 above 80 85% assuming whatever is the 57:37 57 minutes, 37 seconds number addition right. So can we think like that that you're aiming at occupancy and then uh uh number addition you are going to go more from the full 57:46 57 minutes, 46 seconds side like so you are more uh very clear on the kind of numbers you add. So can we take that or you have any targets on 57:53 57 minutes, 53 seconds member edition? uh so I I I as I've said in the past also I think the quality of the members is more important and we are 58:02 58 minutes, 2 seconds targeting a utilization metric broadly right so uh and which means that I mean we are 58:08 58 minutes, 8 seconds moving from probably just thinking about it in terms of members to as guests whether it is member or non-member and 58:17 58 minutes, 17 seconds that transition uh so so the way I think of it is obviously we have internal targets for member edition 58:25 58 minutes, 25 seconds But uh I think more importantly we have internal targets for guests and occupancy uh and that's that's what we 58:32 58 minutes, 32 seconds are more focused on. So one of the things as we thought about this journey is if you have to make it a pull brand 58:39 58 minutes, 39 seconds we can't have targets on a minimum number of members to join. We should be able to pull members and non-members both uh and our occupancy targets. 58:50 58 minutes, 50 seconds That's the way to think of it. So, so my uh then my second question is uh when this occupancy target can you share it 58:58 58 minutes, 58 seconds like what is your can you maintain around the same levels of 88%. 59:02 59 minutes, 2 seconds uh two are you still on the target of FI30 10,000 12,000 rooms or one year I said it should not be delayed by five 59:11 59 minutes, 11 seconds six years kind of thing are you on the are you on the target because now we don't have the capital from the member edition right so that's 59:18 59 minutes, 18 seconds what because we now don't have the cash flows from the member edition the way we used to have so that's why I'm asking is the room addition still there that 59:27 59 minutes, 27 seconds target so the room addition target doesn't change number one Number two, 59:33 59 minutes, 33 seconds even this year if you isolate, we had a one-time tax payment and uh uh I think u 59:41 59 minutes, 41 seconds uh the other thing is we started paying tax uh also this year. Even this year 59:48 59 minutes, 48 seconds for example, we have had a 300 cr plus normalized cash flow uh from operations. 59:54 59 minutes, 54 seconds Uh and to me that so that's a balance. I don't think we'll ever go down to a 1:00:01 1 hour, 1 second level where that becomes an issue. Um uh the second thing is that uh if I look at the various responses we are getting 1:00:10 1 hour, 10 seconds from the market, I think uh the current level of member addition is definitely sustainable. I think the question is how 1:00:18 1 hour, 18 seconds far do we want to grow without by member addition without compromising on any of the metrics we have set as guard rails. 1:00:27 1 hour, 27 seconds So if you do not mind that was my clarification. So because we now do not let's say we around add around 1,500 members per quarter. So is the cap and 1:00:36 1 hour, 36 seconds 300 cr on from the business. Is it enough to double our because now the capital from the because I don't know the volume 1:00:43 1 hour, 43 seconds capital is not a con so that doubling of the target. Yeah that's my question. Yeah, that target remains 1:00:51 1 hour, 51 seconds and capital is not a constraint and number addition we are not going to compromise on the quality that we can so and then occupancy you are not ready to 1:01:00 1 hour, 1 minute share the number s about 80 or above 75 somebody will put it in an excel model 1:01:07 1 hour, 1 minute, 7 seconds and so I I I I do believe I do believe that we'll target uh an occupancy of 1:01:13 1 hour, 1 minute, 13 seconds around 80% uh uh but uh that's uh that's why I don't want to be a Precisely. We obviously have precise Excel 1:01:21 1 hour, 1 minute, 21 seconds spreadsheets saying how the occupancy will move, right? 1:01:25 1 hour, 1 minute, 25 seconds So yeah, thank you sir. Last just one confirmation that we will not go for debt for cap like for this doubling of our rooms. We will not need debt. So can 1:01:33 1 hour, 1 minute, 33 seconds I agree? Can we almost not small debt but a huge debt will not come out of the balance sheet. 1:01:38 1 hour, 1 minute, 38 seconds So nothing will come because I think I have clarified and nobody has asked in this call. Let me clarify then uh only 1:01:46 1 hour, 1 minute, 46 seconds probably 25 to 30% will be owned. Uh the balance will come from capital light models whether leads or other structures. Yeah. 1:01:57 1 hour, 1 minute, 57 seconds Thank you. Thank you very much. All the best. Thank you. 1:02:02 1 hour, 2 minutes, 2 seconds Thank you ladies and gentlemen. In the interest of time we will take this as a last question for the day. I now hand the conference over to the management for the closing comments. 1:02:13 1 hour, 2 minutes, 13 seconds Thank you all for joining and I I believe there are one or two or three people who might be still in the queue. 1:02:21 1 hour, 2 minutes, 21 seconds Uh and if you have any question please email us. We will try to answer it. 1:02:25 1 hour, 2 minutes, 25 seconds Apologies I think we have run out of time but uh we are definitely approachable. So please email us and we'll take care of it. Yeah. Thank you. 1:02:34 1 hour, 2 minutes, 34 seconds Thank you sir. On behalf of Mahindra Holidays and Resort India Limited that concludes this conference. Thank you all for joining us and you may now disconnect your lines.