Thomas Cook Forges Ahead with 43% PBT Growth in First Half
Thomas Cook (India) Ltd, the leading travel and related services provider, closed its books of accounts for its second quarter, ended April 30, 2004, on a highly profitable note. The publicly listed company follows the financial year from November to October in alignment with its international parent Thomas Cook AG.
Forging ahead with its double-digit growth, the company registered a revenue of Rs 637 million with a Profit before Tax of Rs 197 million, an increase of 43 percent over corresponding period last year. Profit after Tax is notched at Rs 125 million, an increase of 37 million over corresponding period last year.
"This season has been good for us. All our businesses have shown a strong performance and we have achieved beyond desired targets," says an elated Ashwini Kakkar, CEO & MD, Thomas Cook (India) Ltd.
He also feels that this quarter has been exciting for Thomas Cook and the travel industry in India. The sensational rise of the sensex during this period, the general feel good factor of the market , the lucrative tax incentives given to the travel industry in the pre-budget, all helped boost the travel industry, explains Kakkar. "Our aggressive marketing campaigns, development of new products and continued focus on customer satisfaction, helped us maximise the opportunities thrown up by a growing market," he adds.
In Thomas Cook, the growth rate continues for the Leisure Travel business with both inbound and outbound divisions substantially increasing their market share. The company launched Adventure and Eco Tourism at ITB Berlin, which has been well accepted. While the Group Tours or GIT in outbound continue to be the main draw, the FIT segment is fast bridging the gap with increasing demand for newer destinations like Canada, Scandinavia & Russia, China and Japan.
Thomas Cook is also pushing ahead with its geographical network expansion and opened new outlets in Seepz - Mumbai , Goa and Mauritius. The company now has 55 branches across 16 cities.
The foreign exchange business too improved its profitability with an increased share in retail business and expanded product offering. Travel Insurance too is emerging as another fast growing business. "We aim to hit the Rs 500 million mark in this business in the near future", informs Kakkar.
Touching upon the recent developments on the political front and its impact on the economy and the travel trade, Kakkar is highly optimistic about the upward trend continuing for the travel industry. "Our new Prime Minister is an economist with political experience who has demonstrated his belief in Reforms along with Job Creation. With one out of the 12 persons in the world employed in the Travel & Tourism, this industry has the potential to create up to 25 million jobs in the next decade," he concludes.