Thomas Cook spurts after Q1 net loss narrows

5 Aug 2022 , 11:31 AM

On a consolidated basis, net sales surged 238.9% year-on-year to Rs 976.17 crore in Q1 June 2022. Net sales jumped 86.98% compared with Q4 FY22 (QoQ). Pre-tax loss stood at Rs 2.30 crore in Q1 FY23 compared with pre-tax loss of Rs 51.77 crore in Q4 FY22 and a pre-tax loss of Rs 124.72 crore in Q1 FY22. The significant improvement was propelled by recovery across the businesses - TCIL, Sterling Resorts & SOTC and Digiphoto Entertainment Imaging (DEI). On a like to like basis, the underlying PBT would be Rs 3.3 crore compared to a loss of Rs 27.1 crore QoQ and Rs 140.5 crore YoY, reflecting a strong PBT recovery of Rs 143.8 crore over the previous year (adjusting for the impact of loss of Rs 5.6 crore, loss of Rs 24.7 crore and gain of Rs 15.8 crore in respective quarters as a result of a mark to market non-cash, non-operational loss arising from the companys shares in Quess Corp through its Employee Benefit Trust). Cash and bank balances as on 30 June 2022 were at Rs 850 crore, up from Rs 639.9 crore as on 31 March 2022. Sterling Holiday Resorts reported another profitable quarter with a PBT of Rs 28.3 crore from Rs 15.7 crore (81% growth QoQ). Revenue from operations crossed the Rs 100 crore mark for the quarter for the first time, signaling a strong comeback in the sector. SOTC Travel returned to profitability with a PBT of Rs 8.3 crore against a loss of Rs 2.1 crore for Q4 FY22 and a loss of Rs 16 crore YoY. Income from operations growing to Rs 150.4 crore (4.9x QoQ;18.6x growth YoY). Digiphoto Entertainment Imaging PBT grew to Rs 7.3 crore from Rs 4.5 crore for Q4 FY22. Revenue from operations grew 7% QoQ to Rs 150.7 crore (2.1x growth YoY) led by traction in Southeast Asia and US markets. The company said it reported strong growth in sales across all lines of business in India. Foreign exchange turnover grew by 39% QoQ representing a 66% recovery Vs pre pandemic levels of Q1 FY20. Corporate travel turnover grew by over 97% on a QoQ basis; a 87% recovery Vs pre pandemic levels of Q1 FY20. MICE sales grew by 7.5x QoQ; 44% recovery Vs pre pandemic levels of Q1 FY20. Robust order book for Q2 & Q3 FY23. Despite inflated air fares, limited hotel inventory and visa challenges, leisure travel grew by over 4x on a QoQ basis. Domestic travel sales grew by over 3x QoQ; 78% recovery over pre pandemic levels of Q1 FY20. International travel sales grew by over 4.4x QoQ and 18% recovery over pre pandemic levels. Madhavan Menon, managing director, Thomas Cook (India) said: Propelled by our twin focus on customer experience and technology, the Group has staged strong growth this quarter. Our rapid turnaround as a group - with Income from Operations, growing 87% QoQ to Rs. 9,762 Mn (239% growth YoY), reflect the Groups rapid business recovery. By effectively reducing costs from Rs 4,811 Mn to 3,260 Mn (a 33% reduction in total costs versus pre pandemic levels) we are also ensuring much greater productivity going forward. The Groups strong performance in the quarter was led by Sterling Holidays, DEI, Foreign Exchange and Business Travel segments. With some of our overseas DMS units logging profits already and other units indicating a robust order book, we expect strong growth returning across the Group in the upcoming quarters. Thomas Cook India) (TCIL) is the leading omnichannel travel company in the country offering a broad spectrum of services including Foreign Exchange, Corporate Travel, MICE, Leisure Travel, Value Added Services and Visa Services. It operates leading B2C and B2B brands including Thomas Cook, SOTC, TCI, SITA, Asian Trails, Allied TPro, Australian Tours Management, Desert Adventures, Luxe Asia, Travel Circle International, Sterling Holiday Resorts, Distant Frontiers, TC Tours, Digiphoto Entertainment Imaging (DEI), Go Vacation, Private Safaris East & South Africa. Powered by Capital Market - Live News