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Mahindra Holidays and Resorts India reported a 35% fall in its second-quarter profit on Friday, bogged down by weak sentiment towards international travel.

Shares of the company, which offers resorts and sightseeing packages through its 'Club Mahindra' membership and generates revenue through membership fees, fell about 3% after the results.

Mahindra Holidays' consolidated net profit fell to 137.7 million rupees ($1.64 million) in the September quarter, from 213.4 million rupees a year earlier.

Geopolitical tensions and higher costs of travelling abroad have held back consumers from making international travels, analysts said.

That weighed on Mahindra Holidays, which gets about 47% of its total revenue from its international business that includes properties across Finland, Sweden and Spain.

"The macroeconomic conditions continue to impact overall performance," the company's managing director and CEO, Manoj Bhat, said about European operations.

Total income at the international business, Holiday Club Resorts (HCR), fell to 34.2 million euros ($37 million) from 36.6 million euros a year ago, and also weighed on margins.

However, the company's overall revenue was boosted by surging demand for leisure travel domestically, coupled with the government's focus on tourism and hospitality to make India one of the top five global tourist destinations by 2030.

Total revenue grew 2% to 6.71 billion rupees in the quarter. ($1 = 84.0725 Indian rupees) ($1 = 0.9240 euros)