Thomas Cook (India) fell 2.88% to Rs 152 as investors panicked after UK travel giant Thomas Cook declared for bankruptcy.
On 23 September 2019, winding up orders were made against UK's Thomas Cook Group plc and associated companies. The court appointed the Official Receiver liquidator of the Thomas Cook companies in liquidation. All Thomas Cook UK's bookings, including flights and holidays, have now been cancelled. All of Thomas Cook UK's retail shops will close with immediate effect.Following the news, Thomas Cook (India) clarified to the bourses that it is a completely separate entity from Thomas Cook UK post acquisition in 2012 by Canada based Fairfax Financial Holdings. The media updates on Thomas Cook UK have no correlation and hence no impact on Thomas Cook India.
Thomas Cook (India) was acquired by Fairfax Financial Holdings via a 77% stake in 2012. Since then, Thomas Cook UK has no stake in Thomas Cook (India).
As on 30 June 2019, Fairbridge Capital (Mauritius) held 66.91% in Thomas Cook (India). Fairbridge Capital (Mauritius) is a wholly-owned subsidiary of Fairfax Financial Holdings.
Thomas Cook (India) said its cash and bank deposits balances stand at Rs 1389 crore as of 30 June 2019. On a standalone basis Thomas Cook India is debt free upon pre-payment of Rs 67 crore debenture obligations ahead of schedule. It generates an average annual free cash flow of around Rs 250 crore.
Meanwhile, the S&P BSE Sensex was up 1301.70 points or 3.42% to 39,316.32. The market surged after the Finance Minister Nirmala Sitharaman on Friday, 20 September 2019, slashed corporate tax rate to 22% without exemptions. The effective corporate tax rate after surcharge now stands at 25.17%. The step has significant positive implications for corporates' profitability, broader economy and market valuations.
As on 31 March 2019, Thomas Cook (India) paid corporate tax of 33.05%.
On the BSE, 1.14 lakh shares were traded in the Thomas Cook (India) counter so far compared with average daily volumes of 7021 shares in the past two weeks. The stock hit a high of Rs 156.75 and a low of Rs 142 so far during the day.
The stock hit a 52-week high of Rs 263.85 on 23 Apr 2019. The stock hit a 52-week low of Rs 121 on 23 Aug 2019.
Thomas Cook (India) is a leading integrated transnational travel and travel related services company offering a broad spectrum of services that include Foreign Exchange, Corporate Travel, MICE, Leisure Travel, Insurance, Visa and Passport services and E-Business.
The Thomas Cook India Group's cash and bank deposits balances stand at Rs. 13,890 Mn. as of June 30, 2019.
On a standalone basis, Thomas Cook India is debt free upon pre-payment of Rs. 670 Mn debenture obligations ahead of schedule. This has been made possible using stable and strong cash flows that the Thomas Cook India Group is generating year over year.
The Group generates an average annual free cash flow of around Rs. 2500 Mn.
On a consolidated basis, Thomas Cook's net profit fell 67.7% to Rs 22.79 crore on a 11.2% increase in the net sales to Rs 2317.55 crore in Q1 June 2019 over Q1 June 2018.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
