Thomas Cook India Q3: EBITDA Margin Compresses to 5.33% Amid Mixed Performance
Thomas Cook India reported Q3 consolidated results showing EBITDA of ₹1.14 billion, down 1.7% year-over-year, with EBITDA margin compressing to 5.33% from 5.61%. Despite revenue growth of 4.3% to ₹21.5 billion, the company faced margin pressures while achieving strong operational performance with profit before exceptional items rising 19.76% to ₹897 million.
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Thomas Cook India has released its Q3 consolidated financial results, presenting a mixed performance picture with improved operational profitability offset by exceptional items. The travel and tourism services company showed strong growth in profit before exceptional items while facing margin compression in EBITDA performance.
Financial Performance Overview
The company's Q3 consolidated results demonstrate improved operational performance in certain metrics, with profit before exceptional items showing substantial year-over-year growth, though EBITDA performance showed a slight decline during the quarter.
| Financial Metric | Q3 Current Year | Q3 Previous Year | Change |
|---|---|---|---|
| Revenue | ₹21.50 billion | ₹20.61 billion | +4.32% |
| EBITDA | ₹1.14 billion | ₹1.16 billion | -1.72% |
| EBITDA Margin | 5.33% | 5.61% | -28 bps |
| Profit Before Exceptional Items | ₹897.00 million | ₹749.00 million | +19.76% |
| Exceptional Item | ₹300.00 million | - | - |
| Net Profit | ₹417.00 million | ₹496.00 million | -15.93% |
EBITDA Performance Under Pressure
Thomas Cook India's EBITDA declined to ₹1.14 billion in Q3 compared to ₹1.16 billion in the corresponding quarter last year, representing a decrease of 1.72%. The EBITDA margin compressed to 5.33% from 5.61% year-over-year, indicating pressure on operational efficiency despite revenue growth.
Strong Operational Performance
Despite EBITDA challenges, the company's profit before exceptional items surged to ₹897.00 million in Q3 compared to ₹749.00 million in the corresponding quarter last year, marking robust growth of 19.76%. This improvement indicates stronger underlying business performance in core operations.
Exceptional Items Impact Results
The company reported an exceptional item of ₹300.00 million during the quarter, which significantly impacted the overall financial performance. This exceptional charge affected the translation of improved operational performance to bottom-line results, contributing to the net profit decline.
Revenue Growth Momentum
The company maintained positive revenue trajectory, with total revenue reaching ₹21.50 billion in Q3 compared to ₹20.61 billion in the previous year's corresponding quarter. This growth of 4.32% reflects the company's continued ability to expand market presence in the recovering travel sector, though margin pressures remain a concern.
Historical Stock Returns for Thomas Cook
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -3.97% | -9.67% | -20.33% | -28.17% | -19.12% | +149.48% |
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