Leisure Services
Thomas Cook (India) Limited offers integrated travel services in India and internationally. The company operates through Financial Services; Travel and Related Services; Vacation Ownership and Resorts Business; and Digiphoto Imaging Services segments. The Financial Services segment engages in the wholesale, and retail purchase and sale of foreign currencies and paid documents. The Travel and Related Services segment is involved in tour operations, travel management, visa services, and travel insurance and related activities. The Vacation Ownership and Resorts Business segment engages in the time share holiday's business. The Digiphoto Imaging Services segment offers turnkey imaging solutions and related services. Thomas Cook (India) Limited was founded in 1881 and is headquartered in Mumbai, India. The company operates as a subsidiary of Fairbridge Capital (Mauritius) Limited.
Summary of Thomas Cook (India)'s latest earnings call, featuring management's outlook on business performance, financial results, and analyst Q&A sessions that highlight key strategic initiatives and market challenges.
Last updated: Feb 25
Management Outlook and Key Points:
1. Leadership Transition:
2. Business Consolidation:
3. Financial Performance:
4. Segment Highlights:
5. Margins & Guidance:
6. Geopolitical & Forex Challenges:
7. Growth Drivers:
Outlook:
Last updated: Feb 25
Question 1: "Could you briefly summarize the decline in EBITDA margin from 8.3% to 6.7%. What are the components that led to it and how much, if that's possible?"
Answer: The EBITDA margin decline was due to three one-offs: (1) a $1.6M grant received in Q3 FY24 by DEI (not repeated in FY25); (2) absence of National Games-related profit (Rs.60M YoY); and (3) forex volatility (Thai Baht depreciation led to ~Rs.60M loss vs. Rs.60M gain in FY24). Adjusted for these, margins would show a 5% YoY improvement.
Question 2: "What forms the rise in other expenses?"
Answer: Higher other expenses included rent/utilities for new airport counters (Rs.8.5 crore), marketing spends (Rs.3.5 crore), repairs (Rs.2.5 crore), US inventory write-offs (Rs.2.5 crore), and reclassification of Sterling's contract wages (Rs.5 crore). These were partly offset by revenue growth.
Question 3: "How sustainable are travel business margins given volatility, and when will 5% EBIT margins be achievable?"
Answer: The 5% EBIT margin guidance is a 18"“24-month target, factoring in recovery of overseas DMS units and normalization of geopolitical/currency risks. Q3 FY25's 3.9% EBIT (9M) adjusts to 4.1"“4.2% excluding one-offs. Stability depends on mitigating external shocks (e.g., customer bankruptcies, forex swings).
Question 4: "What actions are taken to mitigate forex volatility risks?"
Answer: While specifics were withheld, measures include revised pricing strategies, contractual safeguards, and operational hedging. The 8% Thai Baht depreciation was rare; such events are not anticipated recurrently.
Question 5: "What is the outlook for B2C travel growth, DMS strategies, and margin expectations?"
Answer: B2C-forward bookings show 35% YoY growth (value), driven by long-haul recovery (Europe demand). DMS growth stems from automation, customer diversification, and product expansion. FY25"“26 EBIT margin guidance remains 5% for travel, with DMS aiming for stable growth via cost rationalization.
Question 6: "What is the MICE segment outlook, and how is Thomas Cook leveraging India's concert/event economy?"
Answer: MICE demand remains robust (private sector) with new government contracts (e.g., National Games Uttarakhand: Rs.120 crore). Concert/event tourism is under evaluation; current focus is on core offerings, though ticket procurement challenges limit immediate participation.
Question 7: "Why are DEI's margins low despite fixed contracts, and when will normalization occur?"
Answer: DEI's margins are impacted by fixed operational costs (staff, tech) and revenue dependency on footfall, which dropped in FY24 due to geopolitical/weather disruptions. FY25 recovery is expected with stabilized attendance and WeC software automation (full impact by Q3 CY25).
Question 8: "What is the tax rate outlook given DTA utilization in Sterling?"
Answer: Sterling's deferred tax assets (DTA) are nearly utilized; a shift to lower tax regimes will be evaluated post-full utilization. Group-wide tax strategies vary by region.
Analysis of Thomas Cook (India)'s financial performance, highlighting revenue trends, growth patterns, and key metrics through quarterly analysis.
Last Updated: Dec 31, 2024
Description | Share | Value |
---|---|---|
(b) Travel and related services | 78.7% | 1.6 kCr |
(d) Digiphoto imaging services | 10.9% | 224.7 Cr |
(c) Leisure Hospitality & Resorts business | 6.7% | 138.9 Cr |
(a) Financial services | 3.6% | 74.4 Cr |
Total | 2.1 kCr |
Balance Sheet: Reasonably good balance sheet.
Size: Market Cap wise it is among the top 20% companies of india.
Growth: Good revenue growth. With 337.5% growth over past three years, the company is going strong.
Smart Money: Smart money looks to be reducing their stake in the stock.
Momentum: Stock has a weak negative price momentum.
Comprehensive comparison against sector averages
THOMASCOOK metrics compared to Leisure
Category | THOMASCOOK | Leisure |
---|---|---|
PE | 26.81 | 67.21 |
PS | 0.84 | 5.64 |
Growth | 12.6 % | 12.7 % |
THOMASCOOK vs Leisure (2021 - 2025)
Understand Thomas Cook (India) ownership landscape with insights into key distribution patterns, offering investors a clear view of stakeholder dynamics.
Shareholder Name | Holding % |
---|---|
Fairbridge Capital Mauritius Limited | 63.83% |
Nippon Life India Trustee Ltd-A/C Nippon India Focused Equity Fund | 2.9% |
Aditya Birla Sun Life Trustee Private Limited A/C - Aditya Birla Sun Life Elss Tax Saver Fund | 2.83% |
Idbi Trusteeship Services Ltd | 1% |
LLP | 0.37% |
Fairfax (Barbados) International Corp | 0% |
FFHL Group Ltd | 0% |
Fairfax Financial Holdings Limited | 0% |
H Investments Limited | 0% |
Fairbridge Investments (Mauritius) Limited | 0% |
Fairbridge Capital Private Limited | 0% |
Distribution across major stakeholders
Distribution across major institutional holders
Valuation | |
---|---|
Market Cap | 6.53 kCr |
Price/Earnings (Trailing) | 26.06 |
Price/Sales (Trailing) | 0.82 |
EV/EBITDA | 11.13 |
Price/Free Cashflow | 12.44 |
MarketCap/EBT | 18.62 |
Fundamentals | |
---|---|
Revenue (TTM) | 7.96 kCr |
Rev. Growth (Yr) | 7.33% |
Rev. Growth (Qtr) | 1.76% |
Earnings (TTM) | 250.55 Cr |
Earnings Growth (Yr) | -47.76% |
Earnings Growth (Qtr) | -34.28% |
Profitability | |
---|---|
Operating Margin | 4.45% |
EBT Margin | 4.41% |
Return on Equity | 11.83% |
Return on Assets | 3.51% |
Free Cashflow Yield | 8.04% |
Investor Care | |
---|---|
Dividend Yield | 0.48% |
Dividend/Share (TTM) | 0.6 |
Shares Dilution (1Y) | 0.00% |
Diluted EPS (TTM) | 5.29 |
Financial Health | |
---|---|
Current Ratio | 0.91 |
Debt/Equity | 0.12 |
Debt/Cashflow | 3.77 |
Detailed comparison of Thomas Cook (India) against industry peers, highlighting key financial metrics, valuation ratios, and performance indicators to provide competitive context within the sector.
Ticker | Name | Mkt Cap | Revenue | Price %, 1M | Returns, 1Y | P/E | P/S | Rev 1-Yr | Inc 1-Yr |
---|---|---|---|---|---|---|---|---|---|
IRCTC | Indian Railway Catering & Tourism CorpTour, Travel Related Services | 61.12 kCr | 4.76 kCr | +5.02% | -26.85% | 49.25 | 12.83 | +12.05% | +12.25% |
MHRIL | Mahindra Holidays & Resorts IndiaHotels & Resorts | 6.24 kCr | 2.93 kCr | +8.46% | -28.67% | 45.84 | 2.13 | +7.61% | +52.76% |
ITDC | India Tourism Development CorpHotels & Resorts | 4.9 kCr | 556.8 Cr | -2.99% | -16.19% | 67.87 | 8.79 | +0.32% | +5.10% |
EASEMYTRIP | Easy Trip PlannersTour, Travel Related Services | 4.18 kCr | 632.54 Cr | +0.68% | -49.83% | 52.44 | 6.61 | +13.50% | -46.74% |
YATRA | YATRA ONLINETour, Travel Related Services | 1.36 kCr | 713.78 Cr | +1.04% | -41.92% | 50.33 | 1.9 | - | - |