Thomas Cook Shares Surge 7% After Strong Q2FY25 Earnings

Thomas Cook (India) Shares surged up to 7% on the BSE, reaching an intraday high of ₹204.90 per share, following the announcement of strong financial results for the Q2 FY 2024-25 (Q2FY25).

Q2FY25 Financial Highlights

Thomas Cook (India) reported a net profit of ₹71.9 crore for Q2FY25, marking a 39.6% growth compared to ₹51.5 crore in the same quarter last year. The company’s revenue from operations rose by 8.7%, reaching ₹2,004 crore, up from ₹1,843 crore in Q2FY24.

In terms of profitability, earnings before interest, tax, depreciation, and amortisation (EBITDA) increased by 21.1% to ₹125 crore from ₹103 crore in the previous year. The EBITDA margin improved to 6.2%, compared to 5.6% in Q2FY24.

Strong Cash Position

The company maintained a solid cash and bank balance of ₹1,888 crore as of September 30, 2024, showcasing its financial stability.

Leadership Remarks

Madhavan Menon, Executive Chairman of Thomas Cook (India), highlighted that the company achieved strong results during a typically off-peak quarter for the travel industry. He noted that for the first half of FY25 (H1FY25), the company saw a 26% growth over H2FY24. Menon emphasised that after recovering in business volume, Thomas Cook’s current focus is on sustainable growth and profitability.

Broad Service Portfolio

Thomas Cook (India) is a prominent travel and financial services provider in India, offering a variety of services such as Foreign Exchange, Meetings, Incentives, Conferences, Corporate Travel, Exhibitions (MICE), Leisure Travel, Insurance, Visa and Passport Services, and E-Business.

Stock Performance and Valuation

The company’s stock has shown impressive growth, rising 173% year-to-date and gaining 138% over the last year, significantly outperforming the BSE Sensex, which rose 7.7% year-to-date and 19.8% over the past year. Thomas Cook’s current market capitalisation stands at ₹9,433.48 crore, with its shares trading at a price-to-earnings ratio of 81.09 and an earnings per share of ₹2.36.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.