Thomas Cook (India) Limited announces results for FY20

Thomas Cook (India) Limited India's largest integrated travel services company, today announced its financial results for the year ended March 31, 2020.

Highlights:

- The Group witnessed the growing impact of COVID-19 across the global network as early as January 2020 for the Hong Kong business, February for Thomas Cook & SOTC & March for the inbound business in TCI. Despite this, Consolidated Revenue from Operations grew 3% to Rs. 68.3 Bn. from Rs. 66.0 Bn.

- Standalone PBT stood at Rs. 327 Mn. in FY20 against Rs. 345 Mn. in FY19. Rs. 327 Mn. of FY20 excludes a non-cash charge of Rs. 295 Mn. on account of reduction in the value of shares in Quess Corp Ltd. (mark to market) and a one-time cost of Rs. 250 Mn. on account of stamp duty payable pursuant to the Composite Scheme of Arrangement and Amalgamation

- Focus on cash conservation and cost optimization across all aspects of business to maintain short-term liquidity & balance sheet strength given the uncertain environment

- The cost savings resulting from these initiatives across India businesses are estimated at Rs. 3 Bn., representing approximately 37% of costs for the calendar year. The Board also decided not to pay a dividend this year with a view to conserve cash, given the extraordinary business challenges

- The Foreign Exchange business classified as an essential service restarted operations in May & turned positive in the same month. The business is expected to grow its bottom line in the coming months

- As of June 17th, Thomas Cook and SOTC have reopened 157 retail travel outlets across 77 cities. A wide range of domestic offerings were launched on June 1st, that have resulted in a steady enquiry funnel and some early confirmed bookings. Demand is expected to pick up going forward

- Thomas Cook & SOTC Assured - Safe Travel Program launched, in association with Apollo Clinics, to ensure safety of travellers at every stage

- Technology upgraded with a focus on contactless, scalable, secure solutions to ensure a seamless customer experience across all lines of business

Speaking on the results and the "Reimagine Program", Mr. Madhavan Menon - Chairman & Managing Director of Thomas Cook (India) Limited said "The Global pandemic which the world continues to deal with over the past few months has challenged all of us - especially, those of us in the travel sector. Our immediate focus obviously has been on cost optimization & cash conservation across various aspects of business. Across Thomas Cook and SOTC, we also invested the last two months to completely reimagine and re-engineer every business and process through integration and the enhanced use of technology. We will continue to focus on safety & hygiene for customers and employees using contactless, technology driven systems and processes across all distribution and delivery channels."

Shares of THOMAS COOK (INDIA) LTD. was last trading in BSE at Rs.28 as compared to the previous close of Rs. 27.7. The total number of shares traded during the day was 27598 in over 305 trades.

The stock hit an intraday high of Rs. 28.4 and intraday low of 27.7. The net turnover during the day was Rs. 771523.

Source : Equity Bulls

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