Thomas Cook (India) Posts Flat Q2FY14 Results
DSIJ Intelligence / 25 Oct 2013
Thomas Cook (India) has managed flat growth in September 2013 quarter. Increase in the financial cost has hampered the bottomline of the company.
Thomas Cook India (TCIL), the leading integrated travel and travel related financial services company in India has posted flat results in September 2013 quarter. The topline of the company rose marginally by 3% to Rs 95 crore in Q2FY14 as against Rs 92 crore in Q2FY13 while the bottomline of the company witnessed negligibly growth of 0.14% in Q2FY14.
Total expenses of the company (Excluding Financial cost) dipped by 3% to Rs 68 crore from Rs 70 crore on YoY basis. However, on yearly basis, the advertisement cost for the company surged by 44% to Rs 2.53 crore. EBITDA for the company rose by 18% to Rs 31 crore in Q2FY14 while EBITDA margin elevated by 417 basis points to 32% from 28% on YoY. To add on, its financial cost has also improved by 42% to Rs 10 crore which in turn has hampered the Net Profit of TCIL.
The company is aggressively working on its expansion strategy in 2013 by adding its presence in 34 new locations in pan India which includes 12 owned offices, 22 Gold Circle Partner (franchise) outlet and has also added its footprints in Mauritius, Sri Lanka and Nepal.
On YTD basis, the stock of TCIL has surged by 35% to Rs 79.15 with TTM price to earnings at 35x. Moreover, even in the sluggish economic situation TCIL has managed flat growth. We suggest investors to tread in a cautious manner in the counter.
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