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The company also hopes that in 2015-16 it will complete the process of merging and then become a 100% independently managed subsidiary of Thomas Cook (India) Limited (TCIL), which acquired the company last year.
Sterling Holiday Resorts, one of India's leading Leisure Hospitality and Vacation Ownership Company, is also planning to open resorts outside India in 2016-17.
The company reported a net profit of Rs 3.95 crore during the quarter ended March 31, 2015 as compared to loss of Rs 5.31 crore. Total income rose to Rs 40.40 crore from Rs 35.34 crore.
Ramesh Ramanathan, Managing Director, Sterling Holidays attributed the increase to growth in ownership, which rose by 42% and occupancy ration, up by 8% during the quarter ended March 31, compared to the same period last year.
The company also took a price increase by 10%, over December tariff, for time sharing and 15% in Average Room Rate (ARR) compared to last year.
In 2014-15 the company has reported a 27% growth in revenue and Ramanathan said the company targets similar growth in 2015-16.
He added the company has begun Fiscal 2016 on a confident note by opening four new resorts in one go at Corbett, Daman, Shirdi and Dindi (on the banks of the river Godavari in Andhra Pradesh).
During this summer, the company is also opening doors to six upgraded resorts in its existing network.
Currently, Sterling has an inventory of 1,767 rooms spread across 24 resorts in various parts of the country and also has 15 additional sites where it plans to add new resorts in the coming years.
Commenting on investment plans, he said, in 2015-16 around Rs 100 crore will be invested to buy land and to add 8-10 resorts, with around 400-500 rooms. The company is also looking at inorganic growth to increase its presence.
On the overseas expansion, Ramanathan said in 2016-17 the company will look at neighbouring countries including Sri Lanka, Bangladesh, Malaysia and also Dubai.
On Merger
Sterling Holidays is in the process of merging and then becoming a 100% independently managed subsidiary of Thomas Cook (India) Limited (TCIL), India's leading integrated travel and travel related financial services company.
"We are just one or two steps away, by end of this fiscal the merger will get over. Name of the company will continue to remain the same," said Ramanathan.
TCIL is a part of Fairfax Financial Holdings Limited, a $38.2 billion global investment and insurance holding company, headquartered in Toronto, Canada.
In February 2014, Thomas Cook India has bought the Chennai-based Sterling Holiday Resorts and announced a merger in a cash and stock deal that values Sterling at Rs 870 crore. That time it was said both companies jointly will have a market value of Rs 3,000 crore, with 9,000 employees.
Sterling Holiday went through trying times with high debt till Bay Capital took it over in 2009. Bay Capital Investment's Siddharth Mehta took over as chairman of Sterling Holiday and brought in Ramanathan from Mahindra Holiday Resorts to run the company.
Since then, the company has been making a return of sorts by refurbishing its resorts.
