2007 Press Releases

Thomas Cook (I) delivers robust revenue and profit growth

Accretive acquisitions drive 22% 9M EPS growth

Revenues up 86%, PAT higher by 76%

Significant margin enhancement – PBIT margins by 300 basis points and PBIDT margins by 80 basis points

Mumbai, August 21, 2007:

Thomas Cook (I) Ltd., a leading travel solution Company has maintained its strong financial and operating performance in the quarter ended Sept. 30, 2007. Both its key businesses namely travel and related services as well as financial services performed healthily.

The Company reported consolidated revenues of Rs. 2,258 million and Profits after Tax (PAT) of Rs. 305 million for the 9 months ended September 30, 2007, reflecting a robust growth of 86% and 76% respectively over the corresponding nine month period ending July 31, 2006. Profit before interest, depreciation and tax (PBIDT) also improved 91% to Rs. 729 million translating to a 32.3% PBIDT margin

Also, on a quarterly basis, revenues and profits before interest and tax grew by 59% and 54% respectively

Commenting on the performance, Mr. Madhavan Menon, Managing Director, Thomas Cook (India) Ltd said, "Our robust financial performance is a testimony of the successful integration of the 2 accretive acquisitions we completed. A healthy macro economic environment combined with our various corporate initiatives has further bolstered our results. Further, as part of our continuing efficiency programme we have succeeded in rationalizing several costs resulting in margin expansion. From an overall perspective though our performance has been impacted by a depreciating US Dollar.

These are exciting times for the travel segment with several factors including increasing exposure levels and higher disposable incomes driving the growth. We also propose to leverage the E-business space which will bring us closer to the consumers and deliver enhanced value. We are confident of our ability to sustain this healthy performance"

9M CY07 (Jan - Sep 2007) overview compared to 9M PY (Nov 05 - July 06)

Accretive acquisitions completed in the previous financial year drove revenues by 86% in the 9 months under review to Rs. 2,258 million. Further, despite increasing investment towards expanding its franchise network and branding, the Company’s Profit Before Interest Depreciation and Tax (PBIDT) improved 91% to Rs. 729 million translating to PBIDT margins of 32.3%. Profit After Tax amounted to Rs. 305 million translating to an EPS of Rs. 1.6 for the period.

Q3 CY07 (July - Sep 2007) overview compared to Q3 PY (May - July 06)

On a quarterly basis, net revenues increased by 59% to Rs. 763 million. PBIDT also improved healthily by 51% to Rs. 274 million translating to PBIDT margins of 35.9%. PAT amounted to Rs. 116 million.

The travel industry is witnessing strong growth traction on the back of increasing exposure higher disposable incomes and growing number of people both traveling abroad and visiting the country.

Thomas Cook has continued its thrust towards leveraging these opportunities to drive growth. As part of its thrust on optimising its presence and reaching a larger audience, the Company has expanded its franchisee network to 22 offices in addition to its own 174 offices in India. This is part of the Gold Circle Programme wherein all these offices are supported by Thomas Cook infrastructure and branding and are exclusive to the Company. The objective of the Programme is to fulfill the needs of the discerning Indian traveler with a network of ‘branded travel shops’ across the country having a common look and feel offering high quality products.

Further, on the back of significantly increasing internet usage, the Company will shortly launch its E-business portal offering its range of services. We are confident that this new offering will surpass any existing and competing product. E-presence is expected to augment all businesses of the Company and provide support to its 174 existing counters across the country. Mr. Amitabh Pandey, a veteran of the industry and the erstwhile head of ‘IRCTC online services’ is heading the E-business initiative.

Additionally, as part of its emphasis on enhancing efficiencies, the Company continues its focus on rightsizing. Integration of people and infrastructure rationalization combined to deliver considerable margin enhancement

The Company also recognizes the critical role people play in this industry. With a view to rewarding and retaining top notch talent in the Industry, in July 2007, the Board issued about 1.25 million shares as Stock Options to the senior management under the Thomas Cook Employees Stock Option Plan 2007 (ESOP 2007). These options can be exercised over a period of 3 years, after 1 year from the date of the grant.

About Thomas Cook (India) Limited

Thomas Cook (India) offers a broad spectrum of travel and related services such as package tours, currency exchange and travel insurance as well as hotel and flight reservations. Thomas Cook has been present in India for over 125 years and operates a total of 174 offices at various locations in the country and has operations in Sri Lanka & Mauritius. It employs close to 2,500 staff and generated revenue of (annualized) Rs. 2,347 million in FY06. In its initiative to be a ‘One Stop Shop’, the Company offers unique travel products to its customers. It has launched the 'Thomas Cook Titanium Card’ and foreign currency Debit Card and very recently has come up with products designed specially for students traveling abroad for higher studies. The Company was acquired by Dubai Financial LLC in 2006.

For further information contact:
Ms. Kruti Sharma Gavin Desa / Kapil Jaswani
Thomas Cook (India) Ltd. Citigate Dewe Rogerson
Phone: 91-22-22048556-8 Tel.: +91 22 4007 5037/5025
Email: Kruti.Sharma@in.thomascook.com E-mail: gavin@cdr-india.com / kapil@cdr-india.com

Some of the statements in this communication may be ‘forward looking statements’ within the meaning of applicable laws and regulations. Actual results might differ from those expressed or implied. Important developments that could affect the Company’s operations include changes in the industry structure, significant changes in political and economic environment in India and overseas, tax laws, litigation and labour relations.