Thomas Cook India Ltd (TCIL) is slated to announce its September quarter earnings for current financial year (Q2FY20) on Thursday, November 7 amid challenging external environment. Given the anticipated headwinds in the larger economy and travel sector, the company expects its travel and forex segments to hold steady during the current fiscal and report modest growth in combined EBIT (earnings before interest and taxes), according to analysts at IIFL.
The company will announce its earnings results a little over a month after the Thomas Cook Plc of the UK collapsed. TCIL, however, has maintained that it is an entirely separate entity from the crisis-hit UK's Thomas Cook. In a filing to exchange on September 23, the company had said Canada-based Fairfax Financial Holdings had acquired the entire 77 per cent stake of the UK's Thomas Cook in the Indian travel company in 2012.
For the first quarter ended June 30, 2019, the travel services firm had posted a consolidated net profit of Rs 20.73 crore as compared to Rs 69.69 crore during the corresponding period of the previous fiscal. Consolidated total income from operations stood at Rs 2,335.70 crore for the quarter under review versus Rs 2,100.41 crore in the year-ago period.
Last month, the company had said that it expected to report revenues of Rs 2,000 crore in 2019 and is aiming at a 20 per cent growth in the next year.
"From Holidays business we are looking at Rs 1,100 crore and from domestic about Rs 160 crore. And the remaining from foreign exchange business," TCIL President and Country Head-Holidays Rajeev Kale had told PTI.
"For 2020, we have fresh budgets. About 20 per cent growth is budgeted", he had said.
Ahead of Q2 earnings announcement, Thomas Cook share price was quoting higher on the bourses. Thomas Cook (India) share price rose 4.34% to Rs 131 compared to the previous close of Rs 125.55 on BSE. The small cap stock has gained after two consecutive days of fall. However, the stock has lost 44.83% since the beginning of this year and 41.83% in last one year.
Edited by Chitranjan Kumar