Cox & Kings (Q2 FY14)

India Infoline News Service | Mumbai |

Camping revenues increased 12% yoy; forward bookings remain healthy with 35% of FY15 target achieved and strong visibility in the key UK market

CMP Rs100, Target Rs135, Upside 35%
  • C&K Q2 revenues rose ~19% yoy driven by strong growth in education segment whose sales increased 51% yoy


  • Overall leisure revenues inched up 3% yoy although India leisure business increased 10% yoy largely driven by MICE and FIT business


  • Education travel growth was supported by healthy performance in all three segments namely PGL, NST and Meininger; PGL benefited from strong booking volumes, NST saw margin expansion; in terms of outlook, company indicated that education business is already 50% booked for FY15


  • Camping revenues increased 12% yoy; forward bookings remain healthy with 35% of FY15 target achieved and strong visibility in the key UK market


  • EBIDTA margin dipped marginally to 55.3% on higher staff costs while reported PAT was boosted by +ve other income, FX gain of ~Rs1.2bn and lower effective tax rate 


  • Revise our earnings estimates but retain BUY with new 9-12mth target of Rs135 (earlier Rs145) 

Results table (consolidated)
(Rs m)
Q2 FY14
Q2 FY13
% yoy
Net sales
8,188
6,890
18.8
Staff costs
(2,448)
(1,971)
24.2
Advt expenses
(304)
(243)
25.1
Other expenses
(907)
(803)
12.9
Operating profit
4,529
3,872
17.0
OPM (%)
55.3
56.2
(89) bps
Depreciation
(746)
(541)
37.9
Interest
(778)
(865)
(10.1)
Other income
79
(127)
-
PBT
3,084
2,339
31.8
Tax
(876)
(999)
(12.3)
Effective tax rate (%)
20.7
42.2
(2,146) bps
Minority int & Associate
(714)
107
-
Exceptional items
1,144
29
Reported PAT
2,637
1,476
78.7
Source: Company, India Infoline Research

Segment wise highlights
Revenues
Q2 FY14
Q2 FY13
% yoy
Leisure
2,660
2,590
3
Education
2,700
1,790
51
Camping
2,770
2,480
12
Others
60
30
100
Total
8,190
6,890
19
EBIDTA
Q2 FY14
Q2 FY13
% yoy
Leisure
1,290
1,300
(1)
Education
1,380
 

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