{"id":19227,"date":"2024-10-13T22:18:41","date_gmt":"2024-10-13T16:48:41","guid":{"rendered":"https:\/\/pulseonline.co\/?page_id=19227"},"modified":"2024-10-13T22:18:41","modified_gmt":"2024-10-13T16:48:41","slug":"crisil-upgrades-thomas-cook-indias-rating-outlook-to-positive-reaffirms-companys-ratings-at-crisil-aa-positive-crisil-a1","status":"publish","type":"page","link":"http:\/\/pulseonline.co\/index.php\/crisil-upgrades-thomas-cook-indias-rating-outlook-to-positive-reaffirms-companys-ratings-at-crisil-aa-positive-crisil-a1\/","title":{"rendered":"CRISIL Upgrades Thomas Cook India\u2019s Rating Outlook to \u2018Positive\u2019. Reaffirms Company\u2019s Ratings at CRISIL AA-\/Positive &amp; CRISIL A1+"},"content":{"rendered":"<div class=\"mediatxt clear_data_more_details data_details_list-style\" data-bind=\"html:newsmediaDetailViewModel.newsmediaDetailResponseList().shortDescription\">\n<p>We are happy to inform you that Thomas Cook&#8217;s Rating Outlook was upgraded by Crisil to \u2018Positive\u2019. It reaffirmed the Company\u2019s Ratings at CRISIL AA-\/Positive and CRISIL A1+<\/p>\n<ul>\n<li><span style=\"color: #000000;\">This reflects significant improvement in Thomas Cook India Group\u2019s overall operating performance by 44% in FY24, driven by strong growth in revenues; expected to sustain at double-digit over medium term<\/span><\/li>\n<li><span style=\"color: #000000;\">Factors in high consumer demand for travel and related services \u2013 benefitting the Company<\/span><\/li>\n<li><span style=\"color: #000000;\">Strong market leadership across travel, forex, leisure &amp; hospitality and digi-photo services<\/span><\/li>\n<li><span style=\"color: #000000;\">Structural reduction in cost, leading to better operating margins and ROCE<\/span><\/li>\n<li><span style=\"color: #000000;\">Improvement in financial risk profile &#8211; reflected in the Group\u2019s adequate capital structure and strong liquid surpluses<\/span><\/li>\n<li><span style=\"color: #000000;\">The upgraded outlook on the debt facilities and CCR of TCIL follows the rating upgrade on the loan facilities of\u00a0 its parent, Fairfax by S&amp;P Global Ratings to BBB+\/Positive<\/span><\/li>\n<\/ul>\n<p><span style=\"color: #000000;\"><strong>Key Rating drivers<\/strong><\/span><\/p>\n<ul>\n<li><span style=\"color: #000000;\">Dominant position in the forex business &amp; strong brand equity in travel related services<\/span><\/li>\n<li><span style=\"color: #000000;\">Limited debt aiding healthy capital structure; high customer advances support liquidity<\/span><\/li>\n<li><span style=\"color: #000000;\">Strong liquidity<\/span><\/li>\n<li><span style=\"color: #000000;\">Strong support from the parent, driven by group\u2019s strategic importance<\/span><\/li>\n<\/ul>\n<\/div>\n<div class=\"mediabtxt data_details_list-style\" data-bind=\"html:newsmediaDetailViewModel.newsmediaDetailResponseList().description\">\n<p><span lang=\"EN-GB\">CRISIL Ratings upgraded its outlook on the bank loan facilities and corporate credit rating (CCR) of Thomas Cook India Limited (TCIL) to \u2018Positive\u2019 from \u2018Stable\u2019 while reaffirming the ratings at \u2018CRISIL AA-\/Positive CRISIL A1+\u2019.<\/span><\/p>\n<p><span lang=\"EN-GB\">The upgraded outlook and reaffirmed rating of the long term at \u2018AA-\/Positive\u2019 and short term at \u2018CRISIL A1+\u2019 follows the rating upgrade on the loan facilities of its parent,<\/span>\u00a0Fairfax by S&amp;P Global Ratings to BBB+\/Positive from BBB+\/Watch Positive<span lang=\"EN-GB\">. TCIL\u2019s rating benefits from strong support from Fairfax. The rating also factors in significant improvement in the Thomas Cook India group\u2019s overall operating performance, driven by strong growth in revenues &#8211; expected to sustain over the medium term and structural reduction in cost leading to better operating margin and ROCE. The Company\u2019s financial risk profile has also improved following sustained better operating performance, reflected in its adequate capital structure and strong liquid surpluses.<\/span><\/p>\n<p><span lang=\"EN-GB\">The Thomas Cook India Group witnessed significant scale-up of operations by ~44% driven by sustained strong growth across all segments &#8211;\u00a0<\/span><span lang=\"EN-GB\">travel, forex, Leisure &amp; hospitality and digi-photo services.<\/span><span lang=\"EN-GB\">\u00a0Overall, revenue for the group is estimated to continue growing at double digits over medium term.<\/span><\/p>\n<p><span lang=\"EN-GB\">Operating margins improved to 6.0% in fiscal 2024 vs 5.3% in fiscal 2023 led by cost reduction initiatives across segments including right sizing of branch network and automation\/ digitisation of certain processes and benefits of operating leverage accruing. The margins are expected to sustain at similar levels over the medium term as the benefits from these structural cost saving measures will continue.<\/span><\/p>\n<p><span lang=\"EN-GB\">Financial risk profile (on a consolidated basis) is expected to remain comfortable with healthy debt metrics.\u00a0 The Thomas Cook India Group\u2019s liquidity has also improved; cash &amp; cash equivalents of Rs.1518 cr. as on March 31, 2024 (Rs. 1009 crore as on March 31, 2023) Net cash accrual along with cash &amp; cash equivalents would be adequate to meet capital expenditure (capex) requirements of Rs 100-120 crore per annum and repayment obligations of Rs 46 crore in fiscal 2025 and Rs 26 crore in fiscal 2026.<\/span><\/p>\n<p><span lang=\"EN-GB\">TCIL\u2019s ratings factor in expectation of continued strong support from the parent, Fairfax.<\/span><\/p>\n<p><span lang=\"EN-GB\">CRISIL Ratings has combined the business and financial risk profiles of TCIL and its subsidiaries, including Sterling Holiday Resorts Ltd (Sterling), TC Tours Ltd (CRISIL A+\/Positive\/CRISIL A1), Travel Corporation India Ltd (CRISIL AA-\/Positive), SOTC Travel Ltd (\u2018CRISIL AA-\/Positive\/CRISIL A1+\u2019), Travel Circle International Ltd, Horizon Travel Services LLC, Travel Circle International (Mauritius) Ltd, and Digi-photo Entertainment Imaging group (DEI) \u2013This is because all these entities, collectively referred to as the Thomas Cook India Group, are strategically important and have considerable operational integration with TCIL.<\/span><\/p>\n<p><span lang=\"EN-GB\"><strong>Madhavan Menon<\/strong>, Executive Chairman, <\/span><span lang=\"EN-GB\">said<\/span><span lang=\"EN-GB\">,\u00a0<\/span><span lang=\"EN-GB\">\u201c<\/span><span lang=\"EN-GB\">CRISIL\u2019s upgraded rating outlook and reaffirmed ratings at \u2018CRISIL AA-\/CRISIL A1+\u2019 is a strong reiteration of the Thomas Cook India Group\u2019s leadership strength across its business segments of Travel, Forex, Holidays, Hospitality and Digital Imaging services. These factor in both the Group\u2019s continued focus on cost management and its accelerated digital-first delivery, expected to drive momentum in the medium term.\u00a0 The TCIL Group reported its highest ever profits in FY24, with every business and geography contributing to the profitability. Given the unabated growth in travel and travel related services demand, we see a strong season and year ahead.\u2019\u2019<\/span><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>We are happy to inform you that Thomas Cook&#8217;s Rating Outlook was upgraded by Crisil to \u2018Positive\u2019. It reaffirmed the Company\u2019s Ratings at CRISIL AA-\/Positive and CRISIL A1+ This reflects significant improvement in Thomas Cook India Group\u2019s overall operating performance by 44% in FY24, driven by strong growth in revenues; expected to sustain at double-digit&#8230; <\/p>\n<div class=\"link-more\"><a href=\"http:\/\/pulseonline.co\/index.php\/crisil-upgrades-thomas-cook-indias-rating-outlook-to-positive-reaffirms-companys-ratings-at-crisil-aa-positive-crisil-a1\/\">Read More<\/a><\/div>\n","protected":false},"author":9,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":[],"_links":{"self":[{"href":"http:\/\/pulseonline.co\/index.php\/wp-json\/wp\/v2\/pages\/19227"}],"collection":[{"href":"http:\/\/pulseonline.co\/index.php\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"http:\/\/pulseonline.co\/index.php\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"http:\/\/pulseonline.co\/index.php\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"http:\/\/pulseonline.co\/index.php\/wp-json\/wp\/v2\/comments?post=19227"}],"version-history":[{"count":3,"href":"http:\/\/pulseonline.co\/index.php\/wp-json\/wp\/v2\/pages\/19227\/revisions"}],"predecessor-version":[{"id":19418,"href":"http:\/\/pulseonline.co\/index.php\/wp-json\/wp\/v2\/pages\/19227\/revisions\/19418"}],"wp:attachment":[{"href":"http:\/\/pulseonline.co\/index.php\/wp-json\/wp\/v2\/media?parent=19227"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}