THOMAS COOK INDIA 2018-19 Annual Report Analysis

Fri, 18 Oct

THOMAS COOK INDIA has announced its results for the year ended March 2019. Let us have a look at the detailed performance review of the company during FY18-19.

THOMAS COOK INDIA Income Statement Analysis

• Operating income during the year fell 41.3% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 74.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 1.5% in FY19 as against 3.6% in FY18.
• Depreciation charges decreased by 50.8% and finance costs decreased by 51.0% YoY, respectively.
• Other income declined by 27.9% YoY.
• Net profit for the year declined by 98.6% YoY.
• Net profit margins during the year declined from 53.9% in FY18 to 1.3% in FY19.

THOMAS COOK INDIA Income Statement 2018-19

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THOMAS COOK INDIA Balance Sheet Analysis

• The company's current liabilities during FY19 stood at Rs 30 billion as compared to Rs 28 billion in FY18, thereby witnessing an increase of 7.6%.
• Long-term debt stood at Rs 2 billion as compared to Rs 2 billion during FY18, a growth of 4.4%.
• Current assets rose 3% and stood at Rs 30 billion, while fixed assets rose 39% and stood at Rs 24 billion in FY19.
• Overall, the total assets and liabilities for FY19 stood at Rs 131 billion as against Rs 122 billion during FY18, thereby witnessing a growth of 8%.

THOMAS COOK INDIA Balance Sheet as on March 2019

THOMAS COOK INDIA Cash Flow Statement Analysis

• THOMAS COOK INDIA's cash flow from operating activities (CFO) during FY19 stood at Rs 3 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY19 stood at Rs -3 billion, an improvement of 176.3% on a YoY basis.
• Cash flow from financial activities (CFF) during FY19 stood at Rs -2 billion on a YoY basis.
• Overall, net cash flows for the company during FY19 stood at Rs -2 billion from the Rs -2 billion net cash flows seen during FY18.

THOMAS COOK INDIA Cash Flow Statement 2018-19

Current Valuations for THOMAS COOK INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 2.4, an decline from the EPS of Rs 165.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 127.0, stands at -376.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.0 times, while the price to sales ratio stands at 1.4 times.
• The company's price to cash flow (P/CF) ratio stood at 45.6 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

Ratio Analysis for THOMAS COOK INDIA

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.0x during FY19, from 1.0x during FY18. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio deteriorated and stood at 1.8x during FY19, from 2.7x during FY18. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company declined and down at 1.0% during FY19, from 70.7% during FY19. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company declined and down at 2.0% during FY19, from 70.1% during FY18. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company declined and down at 1.2% during FY19, from 51.5% during FY18. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

To see how THOMAS COOK INDIA has performed over the last 5 years, please visit here.

THOMAS COOK INDIA Share Price Performance

Over the last one year, THOMAS COOK INDIA share price has moved down from Rs 209.2 to Rs 127.0, registering a loss of Rs 82.2 or around 39.3%.

Overall, the S&P BSE SENSEX is up 12.8% over the year.

(To know more, check out historical annual results for THOMAS COOK INDIA and quarterly results for THOMAS COOK INDIA)