The shares of travel solution providers fell up to 13 percent after the company’s net profit significantly decreased by 50 percent YoY and 35 percent QoQ in Q3FY25.
Price Action
With a market capitalization of Rs 6,794.65 crore, the shares of Thomas Cook India were trading at Rs 144.45 per share, decreasing around 12 percent as compared to the previous closing price of Rs 163.60 apiece.
Reason for fall
The shares of the company have seen bearish movement after Thomas Cook India Ltd reported negative results in Q3FY25, revenue increased by 3 percent on a quarter-on-quarter
basis from Rs. 2,004 crore in Q2FY25 to Rs. 2,061 crore in Q3FY25. Further, revenue zoomed by 9 percent year on year, from Rs 1,893 crore in Q3FY24 to Rs. 2,061 crore in Q3FY25.
The company’s net profit decreased by 50 percent on a quarter-on-quarter basis, from Rs. 91 crore in Q2FY25 to Rs. 47 crore in Q3FY25. Further, net profit fell significantly by 35 percent year on year from Rs 72 crore in Q3FY24 to Rs. 47 crore in Q3FY25.
Segment Performance
The company’s Forex business saw 8% YoY revenue growth to ₹84 crore, with EBIT margins rising to 48%. Travel operations grew 11% to ₹1,591 crore, driven by strong DMS and MICE performance. Sterling Holidays achieved 17 profitable quarters, expanding to 54 resorts with 23 more planned.
Also read….
Challenges
The company faces challenges from geopolitical tensions, particularly in the Middle East, affecting its DMS business. An economic slowdown is impacting global consumer sentiment, and seasonal factors are expected to cause softness in December travel, presenting additional headwinds for the business.
Growth Outlook
Management is optimistic about sustained demand in the leisure segment, particularly domestic and short-haul travel. They maintain a 45% EBIT margin guidance for financial services, despite recent 50% performance. The company expects 8%-10% revenue growth and 12%-15% EBIT growth in the next quarter.
Market Dynamic
Consumer preferences are shifting towards short-haul, domestic, and experiential travel. Management stresses the need to adapt to changing market demands and behaviors. The competitive landscape is evolving with legacy brands like Cox and Kings making a comeback under new ownership, reshaping industry dynamics.
Company Profile
Thomas Cook offers a wide range of services, including Foreign Exchange, Corporate Travel, MICE, Leisure Travel, Visa & Passport services, and E-Business. With a presence in 25+ countries across 5 continents, the company operates 19 brands, including SITA, TCI, and Distant Frontiers.
Written by Abhishek Singh
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
