Comments
ICICI Direct
CMP: ₹296.55
Target: ₹329
Cox & Kings’ (C&K) Q1FY15 revenues grew 26 per cent y-o-y to ₹738.7 crore (vs. I-direct estimate ₹657.7 crore) on account of consolidation of Meininger’s financials and higher sales from the leisure domestic segment (up 14 per cent y-o-y). The camping division also contributed to top-line in this quarter as sale of camping division is likely to conclude by Q2FY15. EBITDA margins improved 24 bps y-o-y to 47.6 per cent led by an all-round better performance of all segments, excluding the camping division. The sale of the camping business for ₹890 crore is likely to help Cox & Kings to de-leverage its balance sheet significantly, going forward.
C&K has done seven acquisitions in the past seven years (including Holidaybreak Plc), which made C&K an integrated player globally with quality products and services. This series of acquisitions brought huge business volume on the book of C&K on a consolidated basis.
Given the company’s healthy operating cash flow, we expect its debt servicing ability to improve. The sale of the camping business for ₹890 crore is likely to help C&K to de-leverage its balance sheet significantly, going forward.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.