Thomas Cook (India) Limited announces consolidated Results
for the quarter ended December 31, 2015

 

Mumbai Feb 3, 2016: Thomas Cook (India) Ltd today declared its consolidated Financial Results for the Quarter ended December 31, 2015 with an increase in consolidated Income from Operations of 41% (Rs 7.4 Bn. to Rs 10.4 Bn.), consolidated pre- exceptional Profit Before Tax, a de-growth of 73% (Rs 314 Mn. to Rs 84 Mn.) as compared to the corresponding period of 2014. The Company’s sustained focus on cash flow management resulted in improved cash flows - from Rs 2044 Mn to 2096 Mn, driven largely by better working capital management.

 

Sterling Holiday Resorts Limited witnessed a growth in total Operating Income for Q3 at Rs.  534.7 Mn. as compared to Rs. 456.7 Mn. in the corresponding period of the previous year, representing an increase of 17%. The company reported a pre- exceptional loss of Rs. 15.1 Mn. Vs a profit of Rs. 8.2 Mn. for the corresponding period.

 

Quess Corp Ltd (“Quess”) filed its Draft Red Herring Prospectus (DRHP) on February 1st, 2016 proposing to raise up to Rs 400 Cr. through an Initial Public Offer. Post the filing of DRHP, Quess and Thomas Cook (India) Ltd have now entered into a “silent period” as regards the operating results of Quess.

 

The quarter saw Thomas Cook India make a series of strategic acquisitions, with an eye on the larger Asia growth opportunity – which resulted in a corresponding cost impact of Rs 55 Mn. in the quarterly results. These acquisitions should see benefits accrue from Q4 of the current financial year.

The acquisitions included Luxe Asia (a premium destination management company in Sri Lanka), Kuoni India (including the brands SOTC and SITA - the leading India inbound travel company) and Kuoni Hong Kong.

 

The newly announced regulations around statutory bonus payment with retrospective effect from April 2014, also resulted in a significant impact on profitability for the quarter, with a provision of Rs. 62 Mn. At a market level, the quarter was set against the growing spectre of global terrorism and a highly volatile foreign exchange environment which witnessed significant fluctuations in the Rupee movement that resulted in negative consumer sentiment and a cascading dampener to travel demand.

 

Highlights of Business Results for the Quarter ended December 31, 2015
Thomas Cook India standalone:

 

Commenting on the results, Mr. Madhavan Menon, Chairman & Managing Director, Thomas Cook (India) Ltd. said, “With an eye on the bigger Asia growth opportunity, we made a series of strategic acquisitions in the last quarter - including Luxe Asia, Kuoni India and Hong Kong. The cost of these acquisitions obviously impacted profitability in Q3 on a TCIL standalone basis, with expected benefits accruing from Q4 of the current fiscal as we focus on synergies and volume advantages.”

 

He added, “It is also important to note that the recently announced statutory bonus payment regulation - made with retrospective effect from April 2014, covering more employees under its purview, resulted in further impairment to profitability with a higher one-time provision of Rs. 62 Mn. at a consolidated level.”

 

About Thomas Cook (India) Limited:
Thomas Cook (India) Ltd (TCIL) is the leading integrated travel and travel related financial services company in the country offering a broad spectrum of services that include Foreign Exchange, Corporate Travel, MICE, Leisure Travel, Insurance, Visa & Passport services and E-Business. The company set up its first office in India in 1881.

 

TCIL’s footprint (exclusive of its subsidiaries) currently extends to over 232 locations (including 23 airport counters) in 92 cities across India, Mauritius & Sri Lanka and is supported by a strong partner network of 116 Gold Circle Partners and 112 Preferred Sales Agents in over 130 cities across India.

 

ICRA has upgraded the long term rating of Thomas Cook (India) Limited’s non-convertible debenture programme to ‘ICRA AA/Stable’. CRISIL has assigned a long term rating of ‘CRISIL AA-/ stable‘ to the non-convertible debenture programme and long term banking facilities, and a short term rating of CRISIL A1+ to TCIL’s banking facilities. Further, ICRA has assigned a rating of ‘ICRA AA-/Stable’ to the company’s preference share programme.

 

Thomas Cook (India) Ltd has been voted as Favourite Outbound Tour Operator at the Outlook Traveller Awards 2015, Best Tour Operator - Outbound at the CNBC AWAAZ Travel Awards 2015, 2014 & 2013 and Best Company providing Foreign Exchange at the CNBC AWAAZ Travel Awards 2015 & 2014; felicitated with Diamond Award for Exemplary Achievements in Visa Issuance at the French Ambassador's Travel Awards Ceremony 2015; Thomas Cook India’s Travel Quest was honoured with a Gold Award at PATA Gold Awards 2015; honored as India's Leading Tour Operator 2014, World Travel Awards Asia & Australasia 2014Favourite Tour Operator at the Condé Nast Traveller Readers' Travel Awards 2015  - 2011 ,recognized as a Consumer Superbrand 2013-14 & 2012-2013 and National Tourism Awards 2013-2014. Thomas Cook India’s Centre of Learning has received IATA accreditation as “Top 10 South Asia IATA Authorized Training Centers”2015, 2013 & 2012. For more information, please visit www.thomascook.in

 

Thomas Cook (India) Limited is promoted by Fairfax Financial Holdings Limited through its wholly-owned subsidiary, Fairbridge Capital (Mauritius) Limited and its controlled affiliates.  Fairbridge is responsible for the execution of acquisition and investment opportunities in the Indian subcontinent on behalf of the Fairfax family of companies.

 

About Fairfax Financial Holdings Limited:
Fairfax Financial Holdings Limited is a financial services holding company based in Canada with a global presence in insurance and reinsurance, as well as joint ventures including ICICI Lombard (India).  The Company, founded in 1985 by the present Chairman and Chief Executive Officer, Prem Watsa, has over the past 30 years, demonstrated a strong and consistent financial track record.  For the year ended December 31, 2014, Fairfax increased book value per share at a compounded annual growth rate of 21.1% since its inception with a corresponding compounded annual increase in share price 19.8% and had over US $36 billion of assets.

 

Fairfax is engaged in long term investments from its own resources, with a focus to delivering long term capital appreciation through a flexible and value oriented approach. Fairfax Financial Holdings through Thomas Cook (India) Ltd. owns  66.80% on a fully diluted basis of the Quess Corp Limited (formerly IKYA Human Capital Solutions Limited), a provider of specialised Human Resource related Services and 100% of Sterling Holiday Resorts Limited (formerly Thomas Cook Insurance Services (India) Limited) engaged in time share and resort business.

 

About Quess Corp Limited (formerly IKYA Human Capital Solutions Limited)
Quess Corp Limited is an integrated business services provider. Headquartered in Bangalore, the Group has more than 1,18,000 employees, with operations across 9 countries. The service and product offerings include four broad operational segments namely Global Technology Solutions, People and Services, Integrated Facility Management and Industrial Asset Management.

 

About Sterling Holiday Resorts Limited:
Sterling Holiday Resorts Limited, a pioneer in vacation ownership and a leading leisure hospitality company in India, was incorporated in 1986 with the vision of delivering great holiday experiences to Indian families. To achieve this vision, the company pioneered Vacation Ownership in India and set about building a network of leisure resorts at some of the best holiday destinations in India. Currently, Sterling Holidays has a total inventory of 1767 rooms spread across a network of 24 resorts in 21 scenic holiday destinations in India.

 

In pursuance of the Order of Hon’ble High Court, Bombay, dated 2nd July, 2015 sanctioning the Composite Scheme of Arrangement and Amalgamation between Sterling Holiday Resorts (India) Limited (SHRIL) and Thomas Cook Insurance Services (India) Limited (TCISIL) and Thomas Cook (India) Limited (TCIL) and their respective shareholders and creditors (Scheme), the time share and resort business division and undertaking of SHRIL was Demerged into TCISIL and the residual business of SHRIL was Amalgamated with TCIL.

 

Post implementation of composite scheme, Sterling Holiday Resorts Limited (formerly Thomas Cook Insurance Services (India) Limited) continued the time share and resort business.

 

The company also has 15 additional sites where it plans to add new resorts in the coming years. For more information visit: www.sterlingholidays.com

 

About Kuoni India & Kuoni Hong Kong
Kuoni India is a leading travel and tourism company active across virtually every travel segment including Leisure Travel, Business Travel, Destination Management Services and Distribution Visa Marketing Services.  Thomas Cook (India) Ltd. holds 56.56% stake Kuoni Travel (India) Private Limited (Kuoni India) and its 100% subsidiary, Travel Corporation (India) Ltd  holds 43.44% stake in Kuoni India.

 

TCIL through its step down Subsidiary Horizon Travel Holdings (Hong Kong) Private Limited holds 100% stake in Kuoni Travel (China) Limited (Kuoni Hong Kong), which has an attractive business in the travel sector backed by a trusted brand name, and a stable and motivated professional management team. Kuoni Hong Kong is a premium outbound travel operator in Hong Kong.

 

For Media Enquiries please contact:

Thomas Cook (India) Limited: Suzanne Pereira – D:+91-22-66091380; M: +91-9820297665; E:suzanne.pereira@in.thomascook.com

Perfect Relations: Apurva Shukla– M: +91-9987632105; E: ashukla@perfectrelations.com