Thomas cook's shares plunge on Q4 results

Travel firm Thomas cook has disappointed with Q4FY16 results. The Indian company which also provides payment and insurance services to their clients has reported a net loss of Rs 76.7 crores. In the corresponding period of the previous fiscal the net loss was at Rs 1.01 crores, the net loss has increased by 74 per cent.

EBITDA and total income has increased by 50 and 79 per cent respectively. Consolidated total income stands at Rs 1299 crores and EBITDA for the period stands at Rs 62.42 crores. The company has managed to post a strong top line but has posted a negative bottom line majorly due to adoption of a more pragmatic and prudent approach towards vacation ownership receivables and write-off of capital work in progress, also Rs 7.3 crore receivables were written-off in the inbound business.

On a yearly basis, the net loss stands at Rs 37 crores which is less as compared to the previous year as for the previous year the loss was at Rs 90.15 crores. EBITDA stands at Rs 242.13 crores. However, total income has been impressive and has increased by 31 per cent over the last fiscal annually.

The company is into a transmission phase, as the firm has made series of acquisitions, and has undertaken a rigorous restructuring of their subsidiaries and business lines and has taken some strong financial decisions which includes taking a significant increase in provisions and some one-time write offs. 

Thomas Cook India Ltd., is an India based Travel and Financial Services Company offering a spectrum of travel-related services that include Foreign Exchange, Corporate Travel, Leisure Travel, and Insurance. The company’s area of business include- leisure travel, corporate travel management, swift network, travel insurance, credit cards, pre-paid cards, foreign exchange and life insurance & e-business. The company operates in two segments- financial services and travel & related services. 

The shares on the bourses on Friday are trading at Rs 182, down by 2.47 per cent.