CRISIL Reaffirms Thomas Cook India’s Rating Reflecting Solid Financial Health

Overview of Thomas Cook India’s Ratings

In a recent evaluation, CRISIL Ratings has upheld its high ratings for Thomas Cook (India) Ltd, recognizing a marked improvement in the company’s operational performance and financial stability for FY25. This affirmation, reflected in the rating of ‘CRISIL AA-/Positive’ and ‘CRISIL A1+’, highlights the robust growth across multiple segments, notably in travel, which significantly contributes to overall revenue generation.

Financial Performance Insights

The financial metrics reveal that Thomas Cook India reported consolidated revenues amounting to INR 8,197 crore in FY25, marking a respectable growth of 11% from INR 7,379 crore in FY24. Travel services continue to dominate the revenue landscape, comprising over 75% of the total earnings. Key segments contributing to this success include destination management services (DMS), leisure travel, and corporate events.

Additional revenue avenues from foreign exchange services, hospitality, and digital imaging further reinforce the company’s financial top-line growth.

Ключові фінансові показники

Profitability and Cost Management

Throughout FY25, profitability metrics exhibited stability, with EBITDA margins standing at 6.52%. This consistency can be attributed to various cost optimization strategies implemented by Thomas Cook, such as streamlining branch networks and embracing process digitization. These measures have translated into operational efficiencies that directly benefit the bottom line.

Liquidity Position

As of March 31, 2025, the company reported a robust liquidity position, with cash and cash equivalents totaling INR 2,070 crore, of which INR 700 crore remained unencumbered. The company also recorded healthy annual cash accruals exceeding INR 300 crore, fortifying its financial risk profile.

Market Position and Brand Strength

CRISIL’s ratings not only reflect the impressive operational results but also recognize the firm’s strong brand equity and dominant presence in the foreign exchange market. The agency specifically highlighted the company’s limited debt and robust support from its parent company, Fairfax Financial Holdings Ltd, which enjoys a commendable rating of ‘BBB+/Positive’ from S&P Global Ratings.

Коментарі керівництва

Mahesh Iyer, the Managing Director and CEO of Thomas Cook (India) Ltd, acknowledged the significance of CRISIL’s re-endorsement, stating that the ratings serve as a testament to the company’s leadership capabilities, strong financial performance, and ongoing digital transformation. He also emphasized continued backing from Fairfax Financial Holdings as a pivotal factor in their sustained growth.

Integration Across Subsidiaries

CRISIL’s in-depth assessment considered the business and financial risk profiles of Thomas Cook (India) Ltd alongside its subsidiaries, including Sterling Holiday Resorts, SOTC, and DEI. This holistic analysis shed light on the strategic and operational integration that exists within the group, which contributes to its overall resilience.

Підсумок

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