Cox & Kings - Q1 FY14 Result Update - IIFL

Cox & Kings (Q1 FY14) - BUY

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.

Source : Equity Bulls

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