Cox & Kings (Q1 FY14)

India Infoline News Service | Mumbai |

C&K Q1 revenues grew 10.2% yoy driven by 14% yoy rise in Education business; leisure business growth at a subdued 3% yoy; Q1 FY13 included revenues from Djoser which was sold in the previous fiscal

CMP Rs109, Target Rs145, Upside 33.5%

  • C&K Q1 revenues grew 10.2% yoy driven by 14% yoy rise in Education business; leisure business growth at a subdued 3% yoy; Q1 FY13 included revenues from Djoser which was sold in the previous fiscal 


  • India leisure grew 16% yoy, a slower pace of increase as compared to previous quarters while  international leisure revenues decline 11% yoy; Bookit and Explore businesses posted subdued performance though growth seen at other international operations; Superbreak business YTD revenue bookings up 8.3% yoy. Camping revenues increased 22% yoy with bookings for FY14 nearly completed


  • Consolidated OPM up 227bps yoy on lower Advertisement and other expenses; Education EBIDTA outpaced revenue rise aided partially by reduction in overhead costs; reported PAT includes exceptional items of Rs17mn cost incurred mainly on rebranding exercise in Camping division and FX gain of Rs607mn vs FX gain of Rs708mn in Q1 FY13. 


  • Company reiterated its capex guidance for FY14 at Rs2bn; we tweak our FY14/15 EPS estimates post Q1 results but retain BUY for 9-12mth target of Rs145. 

Results table (consolidated)
(Rs m)
Q1 FY14
Q1 FY13
% yoy
Net sales
5,862
5,320
10.2
Staff costs
(1,992)
(1,756)
13.4
Advt expenses
(292)
(363)
(19.5)
Other expenses
(804)
(803)
0.0
Operating profit
2,774
2,397
15.7
OPM (%)
47.3
45.1
227 bps
Depreciation
(394)
(484)
(18.5)
Interest
(809)
(916)
(11.8)
Other income
69
70
(1.4)
PBT
1,641
1,068
53.7
Tax
(675)
(458)
47.3
Effective tax rate (%)
30.3
25.8
446 bps
Minority Int & Associate share
(208)
151
-
Exceptional items
590
708
(16.7)
Reported PAT
1,348
1,468
(8.2)
Source: Company, India Infoline Research

Segment wise highlights
Revenues (Rs mn)
Q1 FY14
Q1 FY13
% yoy
Leisure
2,530
2,460
3
Education
2,410
2,110
14
Camping
890
730
22
Others
30
20
50
Total
5,860
5,320
10
EBIDTA (Rs mn)
Q1 FY14
Q1 FY13
% yoy
Leisure
1,130
1,040
9
Education
1,320
 

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