PremiumThomas Cook India has raised funds through issuance of optionally convertible cumulative redeemable preference shares which have been converted into equity shares, ensuring liquidity to meet its commitments
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NEW DELHI: Thomas Cook India on Friday reported a net profit of ₹1.02 crore for the quarter ended June, as per a stock exchange filing of the company’s unaudited results. In the year-ago period, the company had reported a net loss of ₹82.48 crore. Total income fell to ₹32.2 crore in Q1 from ₹35.98 crore in the corresponding quarter of FY22.
With the easing of pandemic and related curbs, the company expects operations to normalize in a phased manner and said that it has assessed the impact of COVID-19 on the carrying amount of its assets and revenue recognition.
The rebound of business and continued cost saving measures have helped Thomas Cook India maximise operating cash flows and conserve cash in the given situation, the travel company said, adding that it has raised funds through issuance of optionally convertible cumulative redeemable preference shares which have been converted into equity shares, ensuring liquidity to meet its commitments. The company has availed loan under the Emergency Credit Line Guarantee Scheme.
“The group has staged strong growth this quarter. By effectively reducing costs, we are also ensuring much greater productivity going forward," said Madhavan Menon, managing director, Thomas Cook India.
He added that despite inflated air fares, limited hotel inventory and visa challenges, leisure travel grew about 4 times quarter-on-quarter, while domestic travel sales grew over 3 times. There was also 78% recovery over pre-pandemic levels of Q1 FY20. International travel sales grew over 4.4 times, recording an 18% recovery over pre-pandemic levels.
According to the India Brand Equity Foundation, contribution of travel & tourism to GDP was 6.8% of the total economy or ₹1,368,100 crore in 2019.
