Thomas Cook (India) announces results for FY20

As of June 17th, Thomas Cook and SOTC have reopened 157 retail travel outlets across 77 cities. A wide range of domestic offerings were launched on June 1st, that have resulted in a steady enquiry funnel and some early confirmed bookings.

Thomas Cook (India), FY 20, Financial Results, Travel news

Thomas Cook (India) Limited has announced its financial results for the year ended March 31, 2020.

Here's a detailed highlights of the financial results:

  • The Group witnessed the growing impact of COVID-19 across the global network as early as January 2020 for the Hong Kong business, February for Thomas Cook & SOTC & March for the inbound business in TCI. Despite this, Consolidated Revenue from operations grew 3% to Rs. 68.3 Bn. from Rs. 66.0 Bn.
  • Standalone PBT stood at Rs. 327 Mn. in FY20 against Rs. 345 Mn. in FY19. Rs. 327 Mn. of FY20 excludes a non-cash charge of Rs. 295 Mn. on account of reduction in the value of shares in Quess Corp Ltd. (mark to market) and a one-time cost of Rs. 250 Mn. on account of stamp duty payable pursuant to the Composite Scheme of arrangement and amalgamation.
  • Focus on cash conservation and cost optimization across all aspects of business to maintain short-term liquidity & balance sheet strength given the uncertain environment
  • The cost savings resulting from these initiatives across India businesses are estimated at Rs. 3 Bn., representing approximately 37% of costs for the calendar year. The Board also decided not to pay a dividend this year with a view to conserve cash, given the extraordinary business challenges
  • The Foreign Exchange business classified as an essential service restarted operations in May & turned positive in the same month. The business is expected to grow its bottom line in the coming months
  • As of June 17th, Thomas Cook and SOTC have reopened 157 retail travel outlets across 77 cities. A wide range of domestic offerings were launched on June 1st, that have resulted in a steady enquiry funnel and some early confirmed bookings. Demand is expected to pick up going forward
  • Thomas Cook & SOTC Assured – Safe Travel Program launched, in association with Apollo Clinics, to ensure safety of travellers at every stage
  • Technology upgraded with a focus on contactless, scalable, secure solutions to ensure a seamless customer experience across all lines of business.

Other updates:

  • The Retail travel businesses of Thomas Cook & SOTC launched a wide range of domestic products to tap into the pent up demand for travel and in line with reopening of domestic skies including: Workations, Wellness, Staycations, Experiential Stays, Pilgrimage Tours & Affordable Luxury
  • Retail Foreign Exchange counters & Wholesale Forex business restarted in May 2020, while Virtual Branches were activated to extend reach for contactless services and to serve customers anywhere
  • MICE businesses across Thomas Cook & SOTC reimagined completely - with virtual incentive platforms, advanced health & safety measures & new age technologies
  • Business Travel process redeployed as an off-site model with bots for invoicing, refunds, streamlined processes & automated credit flow on a single platform
  • The company partnered the Canadian High Commission to repatriate over 8030 Canadian citizens across 25 flights from Delhi, Mumbai, Bengaluru, Amritsar and Ahmedabad
  • The e-commerce business adapted to the new norm via a virtual agent network for contactless customer interactions across Holidays, Forex and Visa - sales & service
  • To ensure business continuity, technology solutions were implemented to ensure a smooth transition to the Work-From-Home (WFH) model for staff
  • The company has taken several measures adapting to the new normal by re-imagining businesses and capabilities with a primary focus on ensuring health and safety at every stage.

Vacation ownership & resorts business (Sterling Holiday Resorts Limited) FY20:

  • Income from Operations for FY20 grew from Rs. 2,611 Mn. to Rs. 2,672 Mn.
  • Losses at EBIT level have reduced significantly from 445 Mn. in FY19 to 283 Mn. in FY20
  • Occupancy rate was higher by 1.3% in FY20 against FY19. The ARR has held at Rs. 4,392

Innovation and new products-services:

  • TCIL entered into a strategic long term agreement with Experience Hub, the trade and promotion arm of Yas Island-Abu Dhabi, one of the world’s fastest growing leisure and entertainment destinations
  •  TCIL and SOTC launched Holiday Plus enabling customers book land packages bundled with real time flight inventory
  • TCIL launched Smart Weekends 2020, micro-cations across domestic & international destinations; also Bike Trips across spectacular routes within India and Bhutan
  • TCIL’s unique #BingeOnBharat campaign offered Indians the benefit of 15 domestic holidays in 2020 at a truly affordable price of Rs 1.5 lakhs per person

India Network expansion:
TCIL opened a total of 44 new outlets in FY 2020: 3 owned branches and 32 franchise outlets for its holiday businesses; 2 foreign exchange implants/extension counters and 6 new Forex outlets at Bengaluru Airport and 1 at Delhi Airport.  This network expansion extends the company’s visibility across metros like Mumbai, Delhi, Kolkata, Bengaluru, Chennai and Hyderabad; equally across Regional India’s Tier II & III source markets like Aurangabad, Ambala, Bhopal, Chandigarh, Nashik and Salem, among others.

Speaking on the results and the “Reimagine Program”,  Madhavan Menon – Chairman & Managing Director of Thomas Cook (India) Limited said “The Global pandemic which the world continues to deal with over the past few months has challenged all of us - especially, those of us in the travel sector. Our immediate focus obviously has been on cost optimization & cash conservation across various aspects of business. Across Thomas Cook and SOTC, we also invested the last two months to completely reimagine and re-engineer every business and process through integration and the enhanced use of technology. We will continue to focus on safety & hygiene for customers and employees using contactless, technology driven systems and processes across all distribution and delivery channels.”

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