 "Thomas Cook India reduces loss to Rs 68 crore in the March quarter")
Integrated travel services company Thomas Cook India has reduced its loss at a consolidated level to Rs 68 crore in Q4 FY21 versus Rs 89 crore in the previous quarter.
In Q4 FY20, it had reported a loss of Rs 120 crore. For the financial year 2020-21, the loss stood at Rs 416 crore as compared to Rs 69 crore in FY20. The performance was impacted due to Covid-19 pandemic-led travel restrictions and lockdowns domestically and internationally.
However, the company registered a recovery in revenue by 48 per cent to Rs 402 crore in Q4 FY21 as against Rs 271 crore in Q3 FY21, primarily driven by improved performance of foreign exchange business in India, the Middle East-based Destination Management Specialist (DMS) companies and Sterling Holidays Ltd.
Its focus on cost optimisation resulted in Rs 680 crore savings, a significant 22 per cent improvement on the annual target of Rs 560 crore.
Thomas Cook India said it continues to maintain short-term liquidity and balance sheet strength in the uncertain environment with a continued focus on cash conservation.
"The consolidated cash and bank balances were at Rs 856 crore as of March 31 and are adequate to deal with commitments for the coming quarters," it said in a statement.
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The company boosted its cash reserves by securing fresh funding of Rs 436 crore from its parent Fairbridge Capital Mauritius Ltd through preferential allotment of optionally convertible cumulative redeemable preference shares.
This will help the company to strengthen its balance sheet and to support growth, and leverage opportunities as demand for travel increases, it said.