The Hindu Business Line : Thomas Cook Q2 net down 29 pc

THOMAS Cook (India) Ltd has posted a net profit of Rs 3.22 crore in the second quarter ended April 30, 2005, down 29 per cent from Rs 4.52 crore recorded in the previous corresponding quarter.

Revenue for the quarter under review was at Rs 30.24 crore (Rs 30.25 crore) while the profit before taxation fell to Rs 4.48 crore (Rs 7.08 crore).

Net profit during the half-year ended April 30, 2005, fell to Rs 9.51 crore compared with Rs 12.52 crore in the previous half-year period.

The company registered revenues of Rs 63.1 crore (Rs 63.66 crore) in the six months ended April 30, 2005. Pre-tax profit at Rs 14.7 crore (Rs 19.7 crore) was about 25 per cent below the previous half-year period. Mr Ashwini Kakkar, CEO & MD, Thomas Cook India Ltd, said: "We see this as a short-term phase as we have bookings to demonstrate a healthy growth during this outbound season, which will be reflected in the third quarter."

In the segment-wise results for the quarter ended April 30, 2005, financial services yielded revenues of Rs 7.36 crore, and travel and related services Rs 21.43 crore.

He added that the tsunami and the travel advisories issued in its wake had an adverse impact on the tourism business, especially in the worst affected areas of Sri Lanka (where TCIL has a subsidiary), the Maldives and Thailand.

However, the company has increased its marketing and media exposure in an effort to stimulate tourism demand for the ensuing leisure outbound season.

The reduction in airline ticket prices during the shoulder (non-peak) season also led to lower commission revenues.

In the foreign exchange arena, the appreciating rupee against a weak dollar resulted in lower profitability.

Other impacting factors were increasing competition and lack of adequate foreign exchange supply in the market as NRIs preferred to park their monies outside due to lower interest rates in India.

The company has added three new outlets at Bhubaneswar, Visakhapatnam and Bangalore (its fifth branch).

It has also tied up with State Bank of India and UTI Bank for education loans for students going overseas and offers drafts and wire transfers in 50 currencies.

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