Thomas Cook net down 9% YoY - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

Thomas Cook net down 9% YoY

Jul 20, 2000

Thomas Cook (India) Ltd, a leading forex and tourism company has reported a 14% YoY growth in sales to Rs 204 m for 2QFY01. However the company's operating margins dropped by over 4% to 32.4% in 2QFY01, due to a 22% increase in operating expenditure. The main increase to operating expenditure was driven by a 49% increase in staff costs.

(Rs m) 2QFY00 2QFY01 Change
Sales 179 204 14.0%
Other Income 2 4 115.8%
Expenditure 113 138 21.7%
Operating Profit (EBDIT) 66 66 0.8%
Operating Profit Margin (%) 36.7% 32.4%  
Interest 8 7 -12.0%
Depreciation 13 13 7.2%
Profit before Tax 47 49 6.1%
Other Adjustments 0 4  
Tax 15 16 10.3%
Profit after Tax/(Loss) 32 29 -9.2%
Net profit margin (%) 18.0% 12.2%  
No. of Shares (eoy) (m) 8.8 8.8  
Diluted number of shares 14.6 14.6  
Diluted Earnings per share* 8.8 8.0  
*(annualised)     12.4

Due to lower interest costs in 2QFY01, TCIL's profit before tax went up by 6% YoY in this quarter. However due to amortisation of start up costs for its wholly owned subsidiary Thomas Cook (Mauritius) Holding Company Ltd of the amount of Rs 4.3 m in 2QFY01 the company's net profit declined by 9% YoY to Rs29 m for 2QFY01.

TCIL is in an advanced stage of negotiations to acquire the business of Travel Corporation (India) Ltd. The benefits of this acquisition for TCIL is that by this the company will become very strong in the area of inbound travel, which is currently the forte of Travel Corporation of India.

This fits in well with TCIL's strategy of becoming the "one stop travel shop" as it is currently strong in the areas of foreign exchange and outbound travel.

This year seems positive for the company as the second half performance should improve as inbound tourist arrivals are buoyant (9% growth reported in the 1QFY01). Outbound travel is growing at a rate of 25%-30% per annum, this too will boost the company's earnings.

Thomas Cook India Ltd (TCIL) continues to be a leading player in the forex travel market with a network of 49 branches in 15 cities. The company has become very aggressive on the leisure travel front and its revenues from this business are on the rise. As a result the company's revenues from leisure travel business has gone up from 6 percent of turnover in 1996 to 11 percent in 1999.

On the current price of Rs 424, TCIL is trading at 34x FY2000 EPS of Rs 12.4.

Equitymaster requests your view! Post a comment on "Thomas Cook net down 9% YoY". Click here!

  

More Views on News

Inflation, Covid Drive Stocks Lower. What's Next? (Views On News)

May 15, 2021

Indian share markets snapped three weeks of gains as covid second wave and inflation concerns dampened sentiment.

Adani Group to SBI Cards: Stocks that Will See the Highest Inflows After MSCI Rejig (Views On News)

May 13, 2021

India is expected to see net inflows of Rs 100 bn after the adjustments by MSCI.

These Stocks Have Rallied Over 500% in the Past One Year. Is There Still More Upside? (Views On News)

May 10, 2021

List of stocks that have gained the most in past one year.

Shares of Oxygen Suppliers in Focus Amid Rising Demand for Oxygen (Company Info)

Apr 20, 2021

In this article, we discuss the hype around Oxygen supplier stocks and a little known NBFC company, which has rallied 150% in less than a month.

Nazara Technologies IPO: Should You Apply? (IPO)

Mar 17, 2021

Should you bet on this gaming company backed by ace investor Rakesh Jhunjhunwala?

More Views on News

Most Popular

Hotel Stocks Will Reward Investors (Fast Profits Daily)

Jun 8, 2021

This is why I'm bullish on the hotel and hospitality sector.

My 'Unlock' Investments (Fast Profits Daily)

Jun 11, 2021

The best unlock investments you can make in the market.

How I Discovered a 400-Year-Old Open Secret to Extreme Wealth (Profit Hunter)

Jun 11, 2021

Charlie Munger's open secret about investing success.

The Most Visible Sign of India's Revival is on Two Wheels (Profit Hunter)

Jun 9, 2021

Investing in the best stocks could result in wealth compounding on a massive scale.

More

India's #1 Trader
Reveals His Secrets

Secret To Increasing Your Trading Profits Today
Get this Special Report,
The Secret to Increasing Your Trading Profits Today, Now!
We will never sell or rent your email id.
Please read our Terms

THOMAS COOK INDIA SHARE PRICE


Jun 18, 2021 (Close)

TRACK THOMAS COOK INDIA

  • Track your investment in THOMAS COOK INDIA with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
  • Add To MyStocks

MORE ON THOMAS COOK INDIA

THOMAS COOK INDIA - COX & KINGS COMPARISON

COMPARE THOMAS COOK INDIA WITH

MARKET STATS