Cox & Kings - IIFL - Result Update (Q3 FY14)

Cox & Kings (Q3 FY14) - Market Performer - CMP Rs139, Target Rs145, Upside 4.3%

- C&K Q3 revenues increased ~14% yoy driven by 50% yoy jump in Education sales as Meininger business (revenues ~Rs310mn/1.8bn in Q3/9m FY14) was consolidated from April 2013

- India leisure revenues/EBIDTA grew 14%/16% yoy supported by overseas travel and inbound business; International leisure division revenue/EBIDTA of -8%/+33% excluded Djoser business sold in February 2013

- Q3 is a seasonally lean period for Education though newly consolidated Meininger business performed well; forward bookings for FY15 (ex-Meininger) appear robust at 60%; Camping forward bookings achieved 61% of FY15 target

- EBIDTA margin jumped as Q3 FY13 included exceptional expenses associated with redundancies in HBR as well as supported by a weaker INR; reported PAT included FX gain of Rs392mn vs Rs530mn a year ago

- We revisit our earnings estimates for FY14/15 and introduce FY16 forecasts and in view of current valuations, downgrade the stock to Market Performer with revised 9-12mth target of Rs145 (earlier Rs135).

Source : Equity Bulls

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