Thomas Cook (India) Announces Significant Growth In Its Consolidated Results For Q1FY14

Despite the first quarter of the year being the traditional lean season for the outbound travel industry, the now diversified Thomas Cook (India) Group, saw strong results delivered via both its strategic investments in Ikya Capital Solutions in 2013 on one hand, and healthy performances by its Inbound and Foreign Exchange businesses on the other. Strategic focus via its cash conservation project also resulted in significant increase in free cash flows on an annualised basis.

The total income from operations of the company came in at Rs. 481.43 crore in Q1FY14 as compared to Rs. 86.91 crore in the corresponding quarter last year, registering a big growth of 454%. The total expenditure of the company went up by 479.5% in the current quarter to reach Rs. 458.87 crore. The net profit came in at Rs. 7.98 crore as against Rs. 1.4 crore in the same quarter last year. Unlike Q1FY13, the results of Q1FY14 also integrated the business performance results of Ikya Human Capital Solutions which was acquired in May 2013.

Coming to the segment-wise performance, of the total income of Rs. 481.43 crore, Rs. 48.67 crore came in from financial services, Rs. 40.90 crore came in from travel and related services and a major chunk of Rs. 481.43 crore came in from human resource services. Despite high volatility of the Rupee in the global currency market, the company's Foreign Exchange business posted a 37% growth in earning before tax. The Inbound business saw a strong growth in Q1FY14, with EBT growth of 51% with delivery from both its Charter and non charter businesses and contributions from new emerging source markets.

Commenting on the results, Mr. Madhavan Menon, Managing Director, Thomas Cook (India), said, "Given that this is the traditional low quarter for our largest businesses-Outbound and Foreign Exchange-the consolidated results are admirable with our Inbound team making a remarkable turnaround as also strong delivery from our forex and E Biz teams. This period also, unlike the same quarter in 2013-also reflect the benefits of the Ikya Human Capital acquisition in 2013 that continues to deliver handsome results for the group. As we go into the next quarter that is the peak season for outbound forex, we will remain focused on sustainable growth and leveraging our long-term strategic investment in Ikya, as also the strong synergies of our recently announced merger with Sterling Holidays and are confident of a very strong FY 2014 for the Thomas Cook India group!"