{"id":17230,"date":"2023-12-19T23:16:24","date_gmt":"2023-12-19T17:46:24","guid":{"rendered":"http:\/\/pulseonline.co\/?page_id=17230"},"modified":"2023-12-19T23:16:24","modified_gmt":"2023-12-19T17:46:24","slug":"thomas-cook-indias-credit-rating-upgraded-to-crisil-aa-stable-long-term-and-crisil-a1-short-term","status":"publish","type":"page","link":"https:\/\/pulseonline.co\/index.php\/thomas-cook-indias-credit-rating-upgraded-to-crisil-aa-stable-long-term-and-crisil-a1-short-term\/","title":{"rendered":"Thomas Cook India\u2019s Credit Rating Upgraded to \u2018CRISIL AA- \/ Stable\u2019 (Long Term) and \u2018CRISIL A1+\u2019 (Short Term)"},"content":{"rendered":"<div class=\"mediatxt clear_data_more_details data_details_list-style\" data-bind=\"html:newsmediaDetailViewModel.newsmediaDetailResponseList().shortDescription\">\n<ul>\n<li>Reflects the company&#8217;s rapid revival and overall revenue increase with strong growth momentum<\/li>\n<li>The Company\u2019s strong leadership position in Forex &amp; Travel Services<\/li>\n<li>Balance Sheet strength<\/li>\n<\/ul>\n<p><strong>Rationale:<\/strong><\/p>\n<ul>\n<li><span style=\"color: #000000;\">Company\u2019s sharp revival post pandemic, significant scale-up in revenue across all segments while maintaining healthy operating margins benefitting cash generation<\/span><\/li>\n<li><span style=\"color: #000000;\">Structural reduction in cost resulting in better margins and ROCE<\/span><\/li>\n<li><span style=\"color: #000000;\">TCIL\u2019s strong business risk profile; limited debt aiding healthy capital structure; high customer advances supporting liquidity<\/span><\/li>\n<li><span style=\"color: #000000;\">Strong parental support from Fairfax Financial Holdings Ltd.<\/span><\/li>\n<li><span style=\"color: #000000;\">Dominant position in the forex business<\/span><\/li>\n<li><span style=\"color: #000000;\">Strong brand equity in travel-related services<\/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 has <\/span><span lang=\"EN-GB\">upgraded its rating on the bank facilities of Thomas Cook (India) Limited (TCIL) at \u2018<\/span><span lang=\"EN-GB\">CRISIL AA- \/ Stable \/ CRISIL A1+<\/span><span lang=\"EN-GB\">\u2019<\/span><span lang=\"EN-GB\">.<\/span><\/p>\n<p><span lang=\"EN-GB\">The upgrade of the long term to \u2018AA- \/ Stable\u2019 from \u2018CRISIL A+\/ Stable\u2019 and short term rating to \u2018CRISIL A1+\u2019 from \u2018CRISIL A1\u2019<\/span><span lang=\"EN-GB\">\u00a0reflects the Thomas Cook India Group\u2019s strong scale up in revenue across businesses and expectations<\/span>\u00a0<span lang=\"EN-GB\">of sustained momentum driven by brisk revival in demand post pandemic induced disruptions. The ratings are indicative of TCIL\u2019s strong business risk profile with a leadership position in travel and foreign exchange segments, and a healthy presence in hospitality (Sterling Holiday Resorts) and digi-photo imaging (DEI) segments. The Company has also improved its financial risk profile following sharp revival in business activity. The upgraded ratings factor in the strong parental support from Fairfax Financial Holdings Ltd.<\/span><\/p>\n<p><span lang=\"EN-GB\">The Thomas Cook India Group witnessed significant scale-up of operations with material improvement in overall revenue &#8211; an increase of 164% to Rs. 50.91 Bn in fiscal 2023<\/span>\u00a0<span lang=\"EN-GB\">from Rs 19.31 Bn. owing to strong resurgence in demand and robust recovery in all business segments. The revenue witnessed sustained momentum across segments in the first quarter of fiscal 2024 with an increase of 94% YoY to Rs.18.98 Bn. Driven by strong travel appetite, TCIL witnessed record growth with tripling of Operating Profits for Q1 FY24 to Rs 1.47 Bn (Operating EBITDA).<\/span><\/p>\n<p><span lang=\"EN-GB\">Structural reduction in costs have resulted in better margins and return on capital employed (ROCE). Operating margins having surpassed pre pandemic levels at 5.3% in fiscal 2023 (fiscal 2020: 3.2%), improved further to 6.5% during the first quarter of fiscal 2024 (first quarter of fiscal 2023:4.3%). This improvement was led by sharp cost reduction across segments, including right sizing of branch network and accelerated automation\/digitisation. 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\"><strong>\u00a0Madhavan Menon<\/strong>, Executive Chairman, Thomas Cook (India) Limited <\/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 ratings to \u2018AA- \/ Stable\u2019 is a strong endorsement of Thomas Cook India\u2019s leadership position across the sectors we operate in, and our Balance Sheet strength.<\/span><\/p>\n<p><span lang=\"EN-GB\">Our rapid growth post pandemic, on the back of accelerated digital transformation and strong cost prudence has been pivotal in the delivery of record Operating Profits &#8211; for FY23; sustained for Q1 FY24.<\/span><\/p>\n<p><span lang=\"EN-GB\">Strong growth has been demonstrated across Forex, Travel Services, Hospitality and Digital Imaging and we see robust forwards for the upcoming festive season and ahead.\u201d<\/span><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Reflects the company&#8217;s rapid revival and overall revenue increase with strong growth momentum The Company\u2019s strong leadership position in Forex &amp; Travel Services Balance Sheet strength Rationale: Company\u2019s sharp revival post pandemic, significant scale-up in revenue across all segments while maintaining healthy operating margins benefitting cash generation Structural reduction in cost resulting in better margins&#8230; <\/p>\n<div class=\"link-more\"><a href=\"https:\/\/pulseonline.co\/index.php\/thomas-cook-indias-credit-rating-upgraded-to-crisil-aa-stable-long-term-and-crisil-a1-short-term\/\">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":"https:\/\/pulseonline.co\/index.php\/wp-json\/wp\/v2\/pages\/17230"}],"collection":[{"href":"https:\/\/pulseonline.co\/index.php\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/pulseonline.co\/index.php\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/pulseonline.co\/index.php\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/pulseonline.co\/index.php\/wp-json\/wp\/v2\/comments?post=17230"}],"version-history":[{"count":3,"href":"https:\/\/pulseonline.co\/index.php\/wp-json\/wp\/v2\/pages\/17230\/revisions"}],"predecessor-version":[{"id":17747,"href":"https:\/\/pulseonline.co\/index.php\/wp-json\/wp\/v2\/pages\/17230\/revisions\/17747"}],"wp:attachment":[{"href":"https:\/\/pulseonline.co\/index.php\/wp-json\/wp\/v2\/media?parent=17230"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}