The Hindu Business Line : Thomas Cook posts Rs 21-cr profit in Q4

Improved operating margins and better productivity led Thomas Cook India to post a net profit of Rs 21 crore for the fourth quarter ended December 31, 2007. The total income stood at Rs 81 crore for the same period.

The results are not comparable with the same quarter last year because of the amalgamation of LKP Forex Ltd with the company effective April 1, 2006. Consolidation of results of Travel Corporation (India) Ltd, which was acquired in December 2006 and exclusion of results of Hindustan Cargo Ltd, which was sold in the same month of 2006. Also, Thomas Cook changed its accounting year end from October to December.

According to Mr Madhavan Menon, Managing Director of Thomas Cook India, though the travel industry growth is pegged between 15 and 20 per cent, the company is taking corrective measures to prepare for a possible recession in United States and slowdown in the Indian growth story.

He said, “While we have a lot of domestic demand our business is dependent on external demand as well. If America goes through recession my corporate travel business gets directly affected. If the Indian economy slows down, leisure gets affected. While the impact of these is couple of quarters away, we are looking at variety of initiatives to protect our profitability.”

The company is examining various options for the same which could include cut down in interest cost, using money efficiently, streamlining billing procedures and others in order to cut costs, he said. “Improved productivity with better managed operating cost and fixed costs, slowing down in hiring and some such measures could help us weather the storm.”

Thomas Cook India’s net profit for the year ended December 31, 2007 stood at Rs 52 crore and the total income of the company was Rs 31 crore for the same period. While foreign exchange business on account of appreciation of the rupee grew by 13 per cent. Outbound travel business grew by 79 per cent and corporate travel business grew by 92 per cent at topline level.