Thomas Cook India profits surge 58%
Contributors are not employed, compensated or governed by TD, opinions and statements are from the contributor directly
Thomas Cook India has posted a sharp rise in profits for the quarter ending 30 September 2015.
The company’s operating profit jumped 58% year-on-year to INR9.6 billion (US$147 million) in the three-month period. Thomas Cook India attributed the improvement to “strong delivery from its key travel business lines”, including corporate travel, MICE and outbound leisure.
Earnings before tax and other items (EBITDA) increased 9%.
In the corporate travel sector, Thomas Cook India’s EBITDA surged 182% to INR131m, following a 58% surge in revenue, while a 400% MICE EBITDA increase (to INR82m) reflected the company’s “successful foray into the outbound events segment,” Thomas Cook India said. EBITDA in the leisure outbound sector increased 54% to INR131m, owing to “a healthy increase in overall passenger numbers”.
The company’s two recently acquired units, Quess Corp and Sterling Holiday Resorts, both saw rising profits.
“Despite the quarter ended September being a traditional low season across the travel and tourism industry, our core travel businesses have delivered very well for us,” said Madhavan Menon, managing director of Thomas Cook India.
“The relatively muted EBITDA growth is the result of multiple factors – the full impact of our Sterling acquisition, depreciation costs increasing in line with regulations, interest costs growing in line with working capital needs (and hedging costs) and the impact of various acquisitions made across the group – both in the last financial year and this.
“We at Thomas Cook India Group reaffirm our parent Fairfax’s bullish India and Asia outlook, with our recent acquisitions of Luxe Asia and Kuoni India and HK,” he added.
Thomas Cook India now operates from 232 locations, including 23 airport counters, in 95 cities across India, Mauritius and Sri Lanka.
Comments are closed.