- Reflects significant improvement in Thomas Cook India Group’s performance in fiscal 2025, driven by strong growth across segments, especially travel – a key contributor at over 75% of total revenue
- Factors in high consumer demand for travel and related services – benefitting the Company
- Reiterates leadership strength – across travel, forex, hospitality and digi-photo services
- Structural reduction in cost, leading to better operating margin and ROCE
- Improved financial risk profile – reflected in the Company’s adequate capital structure and strong liquid surpluses
Key Rating drivers
- Dominant position in the forex business & strong brand equity in travel related services
- Limited debt aiding healthy capital structure; high customer advances support liquidity
- Strong liquidity
- Strong support from the parent, driven by group’s strategic importance
TTT NEWS NETWORK
MUMBAI | 10 JUNE 2025
CRISIL Ratings has reaffirmed its ratings of Thomas Cook (India) Limited (TCIL) at ‘Crisil AA-/Positive/Crisil A1+’ on the Company’s bank facilities, corporate credit rating and commercial paper programme.
The Thomas Cook India Group’s rating has been supported by its strong business risk profile with leadership position in travel and foreign exchange segment and heathy presence in hospitality and Digi-photo Imaging (DEI) segment.
The Ratings reflect the significant improvement in the Group’s operating performance with healthy revenue growth of ~11% on-year to Rs 8,197 crore in fiscal 2025 (against Rs 7,379 crore in fiscal 2024), driven by strong growth across almost all segments. Revenue surge from the travel segment was led by robust and increasing demand across the Group’s segments of destination management services (DMS), leisure, meetings-incentives-conferences-exhibitions (MICE) and corporate travel.
The Group’s margins remained healthy at 6.52% in fiscal 2025 (from 6.99% in fiscal 2024), 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.
Financial risk profile (on a consolidated basis) is expected to remain comfortable, with healthy capital structure and debt protection metrics. Tangible net worth stood at Rs 1,447 crore as on March 31, 2025 (Rs 1,240 crore previous fiscal), against total debt (including lease liabilities) of Rs 484 crore. The Ratings also factor the Thomas Cook India Group’s strong liquidity: cash and bank balance of Rs 2,070 crore as on March 31, 2025 (unencumbered balance is ~Rs.700 crore), along with annual cash accrual estimated above Rs 300 crore.
Additionally, TCIL’s ratings factor in benefits from strong support from the parent, Fairfax Financial Holdings Ltd (Fairfax) rated ‘BBB+/Positive’ by S&P Global Ratings.
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 (‘CRISIL AA-/Positive/CRISIL A1+’), Travel Circle International Ltd, Horizon Travel Services LLC, Travel Circle International (Mauritius) Ltd, and Digi-photo Entertainment Imaging group (DEI) –This is because all these entities, collectively referred to as the Thomas Cook India Group, are strategically important and have considerable operational integration with TCIL.
Mr. Mahesh Iyer, Managing Director & CEO, Thomas Cook (India) Limited said, “CRISIL’s reaffirmed ratings at ‘CRISIL AA-/CRISIL A1+’ is a strong endorsement of the Thomas Cook India Group’s leadership strength, robust financial performance, business expansion and digital transformation. The Ratings also reflect the strong support from Fairfax Financial Holdings.”
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