The surge in profits was spurred by the rapid rebound across Forex and Business Travel

Thomas Cook (India) Limited (TCIL) returned to profitability in the quarter with PBT of Rs 59 mn as against a loss of Rs 385 mn QoQ & a loss of Rs. 339 mn YoY. It also reported a sharp increase in Income from Operations for the quarter at Rs 2,979 mn from Rs 793 mn (3.8x growth QoQ) and Rs 443 mn for Q1 FY22 (6.7x growth YoY).

• On a like to like basis, the underlying PBT would be Rs. 115 Mn compared to a loss of Rs. 137 Mn QoQ and Rs. 497 Mn YoY, reflecting a strong PBT recovery of Rs. 612 Mn over the previous year (Adjusting for the impact of Loss of Rs. 56 Mn, Loss of Rs. 247 Mn and Gain of Rs. 158 Mn in respective quarters as a result of a Mark to Market non-cash, non-operational loss arising from the Company’s shares in Quess Corp Limited through its Employee Benefit Trust)
• The surge in profits was spurred by the rapid rebound across Forex and Business Travel as well as the sustainable savings accruing from continuing cost management initiatives

Group Consolidated 96% reduction in losses QoQ to loss of Rs. 23 Mn; Significant improvement from a loss of Rs. 1,247 Mn in Q1 FY22 propelled by recovery across the businesses - TCIL, Sterling Resorts & SOTC and Digiphoto Entertainment Imaging Ltd. (DEI)

• On a like to like basis, the underlying PBT would be Rs. 33 Mn compared to a loss of Rs. 271 Mn QoQ and Rs. 1405 Mn YoY, reflecting a strong PBT recovery of Rs. 1,438 Mn over the previous year (Adjusting for the impact of Loss of Rs. 56 Mn, Loss of Rs. 247 Mn and Gain of Rs. 158 Mn in respective quarters as a result of a Mark to Market non-cash, non-operational loss arising from the Company’s shares in Quess Corp Limited through its Employee Benefit Trust)
• Income from Operations, grew 87% QoQ to Rs. 9,762 Mn (239% growth YoY)
• Cash and bank balances as on Jun 30, 2022 were at Rs. 8,500 Mn up from Rs. 6,399 Mn as on March 31, 2022

Sterling Holiday Resorts reported another profitable quarter with a PBT of Rs. 283 Mn from Rs. 157 Mn (81% growth QoQ)

• Revenue from Operations crossed the Rs. 1 Bn mark for the quarter for the first time, signaling a strong comeback in the sector
• Marked improvement in occupancy to 73% from 52% QoQ
• Increase in ARR by 51% YoY; 35% increase Vs. pre pandemic

SOTC Travel returned to profitability with a PBT of Rs. 83 Mn against a loss of Rs. 21 Mn for Q4 FY22 and a loss of Rs. 160 Mn YoY

• Income from Operations growing to Rs. 1,504 Mn (4.9x QoQ;18.6x growth YoY)
• Return to profitability was led by strong recovery across B2B and B2C segments & the company has a strong pipeline of business for the upcoming quarters

Digiphoto Entertainment Imaging Ltd. PBT grew to Rs. 73 Mn from Rs. 45 Mn for Q4 FY22

• Revenue from Operations grew 7% QoQ to Rs. 1,507 Mn (2.1x growth YoY) led by traction in Southeast Asia and US markets

Strong growth in sales registered across all lines of business in India:

• Foreign Exchange turnover grew by 39% QoQ representing a 66% recovery Vs pre pandemic levels of Q1 FY20
• Corporate Travel turnover grew by over 97% on a QoQ basis; a 87% recovery Vs pre pandemic levels of Q1 FY20
• MICE sales grew by 7.5x QoQ; 44% recovery Vs pre pandemic levels of Q1 FY20. Robust Order book for Q2 & Q3 FY23
• Despite inflated air fares, limited hotel inventory and visa challenges, Leisure Travel grew by over 4x on a QoQ basis. Domestic Travel sales grew by over 3x QoQ; 78% recovery over pre pandemic levels of Q1 FY20. International travel sales grew by over 4.4x QoQ and 18% recovery over pre pandemic levels

Madhavan Menon, Managing Director, Thomas Cook (India) Limited, said, “Propelled by our twin focus on customer experience and technology, the group has staged strong growth this quarter. Our rapid turnaround as a group - with Income from Operations growing 87% QoQ to Rs 9,762 Mn (239% growth YoY), reflect the group’s rapid business recovery. By effectively reducing costs from Rs 4,811 Mn to 3,260 Mn (a 33% reduction in total costs versus pre pandemic levels) we are also ensuring much greater productivity going forward. The group’s strong performance in the quarter was led by Sterling Holidays, DEI, Foreign Exchange and Business Travel segments. With some of our overseas DMS units logging profits already and other units indicating a robust order book, we expect strong growth returning across the group in the upcoming quarters.”