Companies

Regional unrest, weak sentiments weigh on Thomas Cook (India) quarterly performance

Our Bureau Mumbai | Updated on November 08, 2019 Published on November 08, 2019

Madhavan Menon, Chairman and MD, Thomas Cook India

Political unrest and uncertainty in Hong Kong, haze and heat across Singapore and the Malaysian peninsula, and poor economic sentiment across Europe and UK due to Brexit have impacted Thomas Cook (India) Ltd’s bottomline.

Thomas Cook (India) reported losses of Rs 23 crore during the second quarter of the current financial year, compared to a loss of Rs 14.5 crore during the same quarter last year. However, the company has started adding a number of associate company, including Traveljunkie Solutions Private Limited and “Ithaka”- with effect from March 2019 quarter. Including associates, Thomas Cook India reported a profit of Rs 4.2 crore in the second quarter.

Madhavan Menon, Chairman and Managing Director, Thomas Cook (India), said, “This has been a challenging quarter for the travel industry with the collapse of Jet Airways leading to a surge in airfares, as well as the negative impact on customers and to the entire Indian travel industry caused by the closure of Cox & Kings.”

“Globally, the geopolitical unrest in Hong Kong and the Middle East, haze and heat in parts of South East Asia, etc. impacted parts of our outbound and DMS businesses. Also, being a fairly recent event, we continue to monitor the impact at a retail level, of the closure of Thomas Cook UK,” Menon added.

TCIL’s expenses grew to Rs 1,751 crore in Q2 of FY20 from Rs 1,623 crore in Q2 of 2019.

TCIL has 33 subsidiaries, including SITA World Travel, SOTC, Kuoni, Digiphoto, and Sterling Holidays, among others. The company’s revenues from travel-related services fell to Rs 1,428 crore this quarter from Rs 1,473 crore in the same quarter last year. The company, in FY20, acquired a stake in Digiphoto, the revenues from which stood at Rs 138 crore.

The company’s segment results showed that its vacation ownership and resorts business wasn’t doing that well.

Published on November 08, 2019
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