Q1 2027 Thomas Cook (India) Ltd Earnings Call Transcript
Key Points
- Thomas Cook India Ltd (BOM:500413) demonstrated resilience in its India operations, with the foreign exchange business delivering 6% revenue growth and 8% EBIT growth, maintaining a healthy EBIT margin of 45.3%.
- The education portfolio in the foreign exchange segment grew 17% year-on-year, significantly outperforming the industry decline of 27%, driven by strategic investments in distribution and partnerships.
- Sterling Holidays, a subsidiary, delivered its best quarter ever with revenue up 21% year-on-year, EBITDA up 21% to over Rs. 620 million, and a 30% increase in profit before tax, showcasing strong operating leverage.
- The MICE (Meetings, Incentives, Conferences, and Exhibitions) portfolio recorded a healthy 14% year-on-year growth, with over 110 groups managed, reflecting a robust order pipeline and strong execution.
- Digital penetration improved to 23.5% in the foreign exchange business and 21% in travel, with significant growth in online transactions (up 38%), TC Pay app bookings (threefold increase), and WhatsApp channel engagement (over 80% growth).
- The domestic travel segment saw a 29% increase during the quarter, and short-haul destinations like Japan, Korea, and China grew 38% year-on-year, indicating strong demand for regional travel.
- Consolidated revenue declined 12% year-on-year to Rs. 21,530 million, primarily due to the impact of geopolitical disruptions in the Middle East on businesses like Desert Adventures and DEI.
- Profit before tax fell 21% year-on-year to Rs. 885 million, driven by the underperformance of the Middle East operations, with DEI swinging to a negative EBIT of Rs. 152 million from a positive Rs. 106 million last year.
- The long-haul outbound travel portfolio saw sales decline 28% year-on-year due to the conflict in West Asia, with demand remaining subdued and impacting overall travel segment performance.
- The international DMS (Destination Management Services) portfolio declined 33% year-on-year, with Desert Adventures' revenue plummeting 89% and the U.S. inbound business (LIT Pro) seeing a 40% top-line decline.
- The travel segment's EBIT declined 50% year-on-year to Rs. 405 million, as the cost base in the Middle East businesses could not be adjusted at the same pace as the immediate drop in volumes.
- DEI's revenue dropped 38% year-on-year to Rs. 1,307 million, compounded by the closure of non-profitable sites in China and the end of contracts in the Bahamas, with management noting a slow recovery in the Middle East market.
Ladies and gentlemen, good day and welcome to Thomas Cook Limited Q1 FY27 conference call hosted by Systematic Share and Stocks.(Operator instructions)
I now hand the conference over to Mr. Chetan Mahadik. Thank you, and over to you, sir.
Yeah, thank you, Sanya. Welcome, everyone, and thank you for joining us today on the Thomas Cook India Limited Q1 FY27 earnings conference call. From the company we have with us Mr. Mahesh Iyer, the Managing Director and Chief Executive Officer and the Senior Management Team.
We would like to begin the call with brief opening remarks from the management and following which we will have the forum open for an interactive Q&A session. I would now like to invite Mr. Mahesh Iyer to make the initial remarks. Thank you and over to you sir.
Thomas Cook for the earnings call Q1 FY27 Financial and Operating Performance. Before we
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