Thomas Cook India profits jump 41%
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Thomas Cook India saw a sharp rise in profits for the third quarter of its financial year.
The travel company generated operating profits of INR10.4 billion (US$153 million) for the three months ending 31 December 2015, an increase of 41% compared to the INR7.4bn it posted in the same period the previous year.
However a series of one-off expenses impacted the company’s bottom line, with the cost of acquisitions totalling INR55m and new regulations for statutory bonus payments costing the company INR62m. This caused Thomas Cook India’s earnings before interest and tax (EBIT) to decline 15% to INR380m.
The acquisitions made by Thomas Cook India during the quarter included Sri Lankan luxury DMC Luxe Asia, and Kuoni’s tour operating businesses in India and Hong Kong.
“With an eye on the bigger Asia growth opportunity, we made a series of strategic acquisitions in the last quarter, including Luxe Asia, Kuoni India and Hong Kong. The cost of these acquisitions obviously impacted profitability… with expected benefits accruing from Q4,” said Madhavan Menon, chairman & managing director of Thomas Cook India.
Thomas Cook India’s foreign exchange business saw a 6% EBIT increase, while profits from the corporate travel sector surged 58%. Domestic travel sales increased 27%.
The group’s recently-acquired Sterling Holiday Resorts business saw its operating profits rise 17% to INR534.7m.
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