Thomas Cook PAT grows by 36%
Thomas Cook (India) Ltd (TCIL), leading integrated travel and travel related financial services company, declared its consolidated Financial Results for the year ended December 31, 2013 with a surge in Income from Operations of 201% (Rs. 4.3 Bn. to Rs. 12.96 Bn.), a strong growth in Profit Before Tax of over 33% (Rs. 770 Mn. to Rs. 1.02 Bn.) and Profit After Tax of over 36% (Rs. 504 Mn.to Rs. 687 Mn.) Vs. the corresponding period of 2012.
Strategic focus via its cash conservation project resulted in significant improvement in cash flows with an increase of 56% on a YoY basis.
In the face of Rupee depreciation as high as 26%, a prolonged slowdown in the Indian economy - with GDP growth dropping to 4.5% and inflation at a continued high, TCIL's core businesses bucked the trend: an outcome of strong delivery on product innovation, distribution and effective capital management.
Thomas Cook India's core Outbound business registered a revenue growth of 21% and a 59% surge in EBT with an 81% improvement in Free Cash flows in 2013 over 2012.
Despite high volatility of the Rupee in the global currency market, the Company's Foreign Exchange business posted a 16% growth in Earnings Before Tax.
Rapid expansion of the Company's Domestic product portfolio to over 950 in under a year and uptake of its group-inclusive product, saw passenger growth numbers of 33% and an increase in sales of 41% over YTD 2012.
The MICE business delivered a 23% EBT growth, with the Domestic MICE business delivering strong growth in passenger numbers of over 38% Vs. the previous financial year.
The Inbound business saw a strong growth year, with EBT growth of 101% over YTD 2012, courtesy new emerging source markets, an expanded network, as also new Charter businesses.
The company's expanded E Biz platform delivered well with a 63% revenue growth over 2012.
The strategic shift of focus by the company's Forex business to Payment Solutions Vs pure play currency exchange, paid dividends with the Company's multi currency Borderless Prepaid Card registering impressive uptake with over 60,000 of cards sold; a loaded value of US$ 205 Mn; and a market share of more than 12%, merely a year from launch - making it the largest non bank player in the space. The recently launched "Incredible India Card" a prepaid Rupee value card, in partnership with the Ministry of Tourism and Yes Bank also offers growth potential to the Forex business.
Among other reasons attributed to the company's success in the challenging economic environment is the company's innovative Consumer Outreach strategy into new distribution channels via its 'Shop-in-Shop' model - with outlets launched at LuLu Mall, Kochi and Mumbai's prestigious Jaslok Hospital as cases in point.
Commenting on the results, Madhavan Menon, Managing Director, Thomas Cook (India) Ltd., said, "2013 was a challenging year for the entire Industry, and that makes the impressive results via our core businesses - with a 201% growth in Income from Operations- even more significant. Our single minded focus as an enterprise on "free cash" delivered via our Cash Management Project has delivered handsomely with a 56% growth in free cash over the FY."
He added, "With forward booking for Summer 2014 already up by over 15% over last year (and this is only the start of our booking season), the impactful returns via our Ikya acquisition last year, our just announced merger with Sterling Holidays with the strong synergies that the partnership offers - we are confident that 2014 will be another rewarding year for the Thomas Cook India Group!"
(Posted on 20-02-2014)