Thomas Cook India Ltd (BOM:500413) Q4 2025 Earnings Call Highlights: Record Profits and ...
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Thomas Cook India Ltd (BOM:500413) reported a robust financial performance with a 19% increase in revenue and a 15% rise in profitability for the full year.
The company achieved a 51% increase in quarterly profit, marking the highest ever quarterly profit for this specific quarter.
The financial services segment reported a 14% growth in revenue with improved margins, aligning with market guidance.
Sterling Holiday Resorts, a subsidiary, achieved a 10% revenue growth and maintained a strong EBITDA margin of 34%, reflecting successful expansion and operational efficiency.
The company has successfully expanded its distribution network, adding 21 new locations, and continues to invest in digital tools to enhance customer engagement and operational efficiency.
The DEI segment faced challenges throughout the year, including geopolitical issues and operational difficulties, impacting overall performance.
The company experienced a dip in margins in the foreign exchange segment due to front-loaded investments, affecting short-term profitability.
Despite growth in the travel segment, the corporate travel side faced slower offtake due to budget freezes and tariff impacts, affecting quarterly performance.
The closure of US operations in the DEI segment due to high costs indicates challenges in maintaining profitability in certain markets.
Seasonality and external factors, such as geopolitical tensions and economic conditions, continue to pose risks to consistent growth across all segments.
Warning! GuruFocus has detected 3 Warning Signs with DTRUY.
Q: What is the guidance for room addition for Sterling Holiday Resorts in FY 26? A: Vikram Lalvani, MD and CEO of Sterling Holiday Resorts, stated that in FY 525, they added 14 resorts, amounting to about 600 to 700 rooms. In FY 526, they plan to open another 14 to 15 resorts, with room inventory expected to come close to 4,000.
Q: What is the expected growth rate for Thomas Cook India Ltd's DI segment over the next couple of years? A: The management expects the DI segment to grow at a compounded rate of around 12% annually.
Q: How is Thomas Cook India Ltd addressing the challenges faced by DEI in FY 2025? A: KS Ramakrishnan, CEO of DEI, explained that despite challenges such as geopolitical issues and the closure of US operations, DEI has implemented strong cost controls and enhanced technology. They have renewed over 50 accounts with a total value of $34 million and acquired 30 new accounts, indicating a robust outlook for FY 26.
Q: How does Thomas Cook India Ltd plan to maintain or improve occupancy levels with the aggressive expansion of Sterling Holiday Resorts? A: Vikram Lalvani mentioned that the company will continue to expand in the leisure space domestically, focusing on strengthening their presence in wildlife, hill, and spiritual segments. They are also targeting tier 2 and tier 3 towns where there is a mix of leisure and business demand. Investments in technology and distribution systems will support this expansion without adding significant fixed costs.
Q: What is the impact of technology on Thomas Cook India Ltd's business, and how are they leveraging AI? A: Mahesh Ayer, Managing Director and CEO, stated that technology is an enabler for seamless customer interaction and operational efficiency. They are investing in AI for customer interactions and corporate travel management, aiming to enhance customer experience and improve productivity. Technology is used to drive customer conversions and improve turnaround times in B2B operations.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
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