Thomas Cook India has reported a significant surge in its Q2 profits, marking a 16-fold increase to Rs 76.6 crore ($10.3 million), as revealed on Friday. The robust earnings were primarily backed by the solid performance of its diverse travel businesses, which include Thomas Cook & SOTC, Foreign Exchange & Sterling Holidays, and segments such as Business & MICE.
The overseas travel division posted a notable turnaround from last year's loss of Rs 17.6 crore ($2.4 million) to a profit of Rs 8 crore ($1.1 million) this year. Furthermore, the group's cash and bank balance stood at Rs 13.4 billion ($180 million) as of the end of September 2023.
Madhavan Menon, the executive chairman of Thomas Cook India, highlighted an impressive EBITDA increase from Rs. 548 million to Rs. 1,308 million and an over 16 times PBT growth to Rs. 766 million. This performance was largely driven by a 36% YoY growth in the Leisure segment and a 32% rise in forward bookings and Travel Services, boosted by the festive season.
Menon also underscored the contributions of Sterling Holidays and DEI towards these results and emphasized the company's focus on technology enhancements for improved productivity and customer experience. With these positive trends, the company expects to close the year on a strong note.
In other related news, EIH Ltd., a key player in the hospitality sector under The Oberoi Group, also showcased significant growth in its Q2 FY24 results. Standalone revenue surged by 33.2 percent to Rs. 489.6 crore ($65.7 million), with EBITDA escalating by 65.6 percent to Rs. 148.4 crore ($20 million). Profit after tax skyrocketed impressively by 213.2 percent to Rs. 85.2 crore ($11.4 million).
In the consolidated results, the company demonstrated a YoY revenue growth of 32.5 percent, reaching Rs. 552.5 crores ($74.3 million), an EBITDA growth of 63.9 percent to Rs. 164.9 crores ($22.2 million), and a substantial rise in profit after tax of 321.2 percent to Rs. 94.1 crores ($12.7 million). Arjun and Vikram Oberoi attributed the company's continued success to outstanding hospitality, team effort, customer loyalty, expansion in key markets, and unwavering support from guests.
InvestingPro Insights
In light of the recent financial performance of Thomas Cook India, InvestingPro provides some valuable insights. According to InvestingPro data, the company holds more cash than debt on its balance sheet, which is reflected in the reported cash and bank balance of Rs 13.4 billion ($180 million) as of the end of September 2023. This is a positive sign of financial stability, especially considering the travel industry's volatility.
InvestingPro Tips also highlight that Thomas Cook India has been consistently increasing its earnings per share. This aligns with the impressive 16-fold increase in Q2 profits recently reported. Furthermore, the company's net income is expected to grow this year, which aligns with the company's own expectations to close the year on a strong note.
These insights and more are part of the comprehensive analysis provided by InvestingPro, which includes over 15 additional tips for Thomas Cook India. For a more detailed analysis and further insights, consider exploring the InvestingPro platform.
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