Country Club and Hospitality & Holidays Ltd. (CCHHL) will become a debt-free company within the next two quarters, said its chairman and managing director Y. Rajeev Reddy.
“We have brought down our outstanding debt from ₹600 crore to less than ₹60 crore under extraordinary conditions as our revenues were hit by more than 50% during the COVID period,” he said.
Over the last three to four years, CCHHL reduced its debt by disposing of 12 mid-size properties in India for about ₹240 crore and one in Dubai for ₹300 crore. These properties were lying idle, said CFO M. Ram Kumar.
According to him, CCHHL would clear the debts by Q1 of FY24 and this would enable them to start saving cash of ₹30-40 crore from next quarter, which would otherwise be used for paying bank interest.
“The next phase is very challenging. We are going to focus on improving the club activities and at the same time foray into real estate business, which is our core strength. Currently, we are developing two million sq.ft of land in Hyderabad and Bengaluru,” Mr. Reddy said.
CCHHL has drawn up plans to double its membership from half-a-million to one million over the next four to five years through organic and inorganic routes.
Currently, CCHHL has a network 30 clubs and resorts and 140 affiliations in India and abroad. It is planning to add another 30 clubs and 100 more franchisees. The firm is cautious about overseas expansion and would take a decision after two quarters, Mr. Reddy said.
Mr. Reddy also said that they were planning to set up mini-golf courses in Bandipur and Tumkuru, and Kolad, Maharashtra to boost the tourist arrivals into their club. It would come up in two years time at a cost of about ₹25 crore.
On the market expansion, he said they would foray into north, north east and west regions as well as explore some more locations in south.
“Last year, we clocked a turnover of about ₹60 crore and in the next two fiscals, we are hoping to hit ₹90 crore and ₹150 crore respectively,” said Mr. Kumar.
He also said that they had cleared all the term loans with public sector banks except for two small loans with Punjab National Bank and did not have any other dues.