The Hindu Business Line : Thomas Cook clocks Rs 38 cr net for 14 months

Since the company has changed its accounting year-end from October 31 to December 31, the results for the period aren't comparable to the previous year's figures. (Thomas Cook posted Rs 121.78 crore in operating revenue for the previous 12-month period ended October 31, 2005).

"Essentially, all the businesses performed much better [this year]," said Mr Madhavan Menon, Managing Director.

"Volumes have increased. We had greater efficiencies in the travel business. Plus we had better realisations in the foreign exchange business." Operating profit for the 14-month period stood at Rs 77 crore.

In December 2006, Thomas Cook acquired Travel Corporation (India) (TCI) for Rs 182.45 crore and the visa services of TT Enterprises for Rs 16.9 crore.

According to Mr Menon, the integration of TCI should be complete by the end of the second quarter of the company's current fiscal. However, some of the benefits from the acquisition will kick in immediately.

"Product development, advertising, cross-selling - you don't need to integrate them [TCI] to get those benefits," he said.

The board of directors also approved, in principle, a rights issue in the ratio of 1:3 (for every three shares held, one share will be issued) of up to Rs 225 crore.

The proceeds from the issue will be used to part-finance the acquisitions, with the rest coming from internal accruals.

Mr Menon said the acquisition process is over and that Thomas Cook will now focus on growing the outbound, inbound and forex businesses.

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Thomas Cook clocks Rs 38 cr net for 14 months