Thomas Cook (India) Limited, India’s largest integrated travel services company has announced its financial results for the quarter ended June 30, 2021.
Highlights:
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Against the backdrop of the second wave of the pandemic in Q1 FY22, the company registered a healthy recovery in revenue by 141% to Rs315.7cr Vs. Rs130.5cr in Q1 FY21, primarily driven by improved performances of the Middle East based DMS companies, Digiphoto Entertainment Imaging Ltd. (DEI) and Sterling Holidays Ltd.
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The Company reduced its losses at a consolidated level to Rs124.7cr in Q1 FY22 Vs. Rs136.1 in Q1 FY21
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The Company continued its focus on cost prudence with costs at a consolidated level for Q1 FY22 reducing to Rs253.2cr (represents 47% reduction in costs against Q1 FY20, pre-pandemic level) from Rs257.9cr in Q1 FY21
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The company continues to maintain liquidity and Balance sheet strength in the current environment with a continued focus on cash conservation. The consolidated cash and bank balances were at Rs. 6.08 Bn as of June 30, 2021 and is adequate to deal with commitments for the coming quarters and to further scale-up the businesses
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The Foreign Exchange business continued to display resilience, delivering over 45,000 transactions for the quarter with a turnover of Rs. 9.8 Bn - an increase of 54% over Q1 FY21. The Borderless prepaid card load volumes of US$ 30 Mn representing a 102% growth Vs Q1 FY21
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The Holidays business booked 3000 customers during the quarter despite the challenging environment. The forward booking pipeline for Q2 FY22 is encouraging with an overall increase of 53% in sales (55% increase in Domestic holidays and 52% International holidays). Thomas Cook & SOTC have also been appointed as Authorised Ticket Resellers for Expo 2020 in Dubai
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The Business Travel segment despite the second wave, reported a healthy margin with a 6% growth in revenue for the quarter. The business has already seen a 113% increase in sales in June Vs May 2021 - reflective of easing of domestic travel restrictions and strong latent demand. The reopening of international destinations and Covishield acceptance is displaying positivity in demand for the coming months
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In Q1 FY22, the company’s MICE businesses in India hosted 48 events and groups (virtual and physical), including a mega virtual event of over 100,000 attendees managed by TCIL and a 13 days multi city international trip of a UHNI Corporate managed by SOTC. Q1 also saw the restart of physical MICE movements to Dubai
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Despite partial/complete lockdown in several geographies, Digiphoto Entertainment Imaging Ltd. (DEI) has reduced its loss at EBIT level by 36% for Q1 FY22 to Rs11cr Vs. Rs17.3cr for Q1 FY21, with the business operations having re-started in select geographies
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Sterling Holidays reported a 129% increase in Income from Operations at Rs41.5cr in Q1 FY22 as against Rs18.1cr in Q1 FY21 and a profit of Rs3.1cr (EBIT) for Q1 FY22 Vs. a loss of Rs14.4cr in Q1 FY21. The increase in income is largely due to a shorter span of lockdown in the current year compared to last year and the subsequent increase in room nights
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CRISIL has reaffirmed its ratings assigned to the bank facilities, debt programs and corporate credit rating of TCIL, at “‘A+/CCR A+/Negative/CRISIL A1’/ Stable” - reflecting strong parent support from Fairfax, healthy liquidity against limited external debt supporting the capital structure, negative net debt and emerging recovery despite the pandemic. The ratings also factor in the Thomas Cook India Group’s dominant position in the foreign exchange business and strong brand equity in travelrelated services
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The company’s focus on technology continued with delivery of a dynamic B2C build-your-own-holiday module (Dyna-pack) towards customization of customers’ holiday experience and a new online visa booking module that facilitates online submission of documents. An upgraded Document Management System (DMS) has gone live enabling digital collection, storage and retrieval of critical customer documentation – of value for transactional and compliance purposes
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The Group companies in India having commenced a vaccination program covering employees, contract teams and families, have already covered 97% of eligible employees
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TCIL & SOTC introduced “TravShield” - Travel Safety Commitment across its lines of business. TravShield is a comprehensive 360° safety commitment, enhancing the company’s widely recognized “Assured” Safe Travel Program in partnership with Apollo Clinics
Madhavan Menon – Managing Director, Thomas Cook (India) Limited said, “With the complete reopening of domestic travel and the reopening of international destinations like Maldives, Switzerland, Germany, France and Spain among others in quick succession - to fully vaccinated customers, we are witnessing a strong return of positive sentiment and confidence in travel.
The upcoming festive season is witnessing encouraging demand and with upcoming international opportunities like EXPO 2020 Dubai, IPL and the T20 World Cup, we expect the momentum to accelerate.
I am proud that our staff vaccination program has been able to cover 97% of our eligible staff and with a rapidly growing base of vaccinated customers, we are confident of the strong, rapid recovery of travel. Our TravShield safety program reiterates our commitment - as responsible market leaders, to benchmark safety for our customers across businesses.”
At around 10:05 AM, Thomas Cook (India) was trading at Rs59.10 apiece down by 2.39% on the BSE,
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