Thomas Cook (India) Ltd's Q3FY19 consolidated net profit before tax rises 42.4% yoy to Rs21.64cr: Misses Estimates

Thomas Cook India Ltd's Q3FY19 revenue came in at Rs1,555.57cr, an increase of 9.4% yoy (like-on-like). The operating profit for Q3FY19 stood at Rs42.01cr, an increase of 46.0% yoy (like-on-like). The EBITDA margin expanded by ~68bps yoy to 2.70% in Q3FY19. The net profit before tax came in at Rs21.64cr, up 42.4% yoy (like-on-like). The revenue came in line with estimates. However, the EBITDA and net profit before tax missed the estimates of Rs48cr and Rs35cr by 12% and 38%, respectively.

• The Financial Services segment remained flat at Rs62.6cr during Q3FY19. However, the segment's EBIT increased significantly by ~52% yoy to Rs145.5cr during the quarter. The Retail business witnessed revenue growth of 19% yoy. The Thomas Cook Borderless Prepaid Card (BPC) sales increased by 9% yoy.
• Travel and Related services revenue increased by 9.8% yoy to Rs1,422.4cr in Q3FY19. The segment's EBIT went up ~39% yoy to Rs48.2cr during the quarter. The DMS companies delivered strong performance and turned profitable, driven primarily by Middle East and South East Asia units.
• Sterling Holiday Resorts revenue grew by 6.5% from Rs70.4cr to Rs74.9cr on a comparable basis, excluding IND-AS impact on revenue accounting. Operating EBITDA for Q3FY19 grew from Rs0.38cr to Rs1.9cr, on a comparable basis, excluding the IND-AS impact on revenue accounting and sale of land in Q3FY18. Occupancy increased by 4% and Average Room Rent increased by 12% qoq.
• Thomas Cook had a strong forward booking position for the outbound businesses with a growth of 20% yoy.
• The finance cost for the quarter declined by 17.4% yoy to Rs17.78cr, leading to higher net earnings for the period.