Thomas Cook (India) Limited (TCIL) returned to profitability in the quarter with PBT of Rs. 59 Mn Vs a loss of Rs. 385 Mn QoQ & a loss of Rs. 339 Mn YoY

• Reported a sharp increase in Income from Operations for the quarter at Rs. 2,979 Mn from Rs 793 Mn (3.8x growth QoQ) and Rs 443 Mn for Q1 FY22 (6.7x growth YoY)
• On a like to like basis, the underlying PBT would be Rs. 115 Mn compared to a loss of Rs. 137 Mn QoQ and Rs. 497 Mn YoY, reflecting a strong PBT recovery of Rs. 612 Mn over the previous year (Adjusting for the impact of Loss of Rs. 56 Mn, Loss of Rs. 247 Mn and Gain of Rs. 158 Mn in respective quarters as a result of a Mark to Market non-cash, non-operational loss arising from the Company’s shares in Quess Corp Limited through its Employee Benefit Trust)
• The surge in profits was spurred by the rapid rebound across Forex and Business Travel as well as the sustainable savings accruing from continuing cost management initiatives

Group Consolidated 96% reduction in losses QoQ to loss of Rs. 23 Mn; Significant improvement from a loss of Rs. 1,247 Mn in Q1 FY22 propelled by recovery across the businesses – TCIL, Sterling Resorts & SOTC and Digiphoto Entertainment Imaging Ltd. (DEI)

• On a like to like basis, the underlying PBT would be Rs. 33 Mn compared to a loss of Rs. 271 Mn QoQ and Rs. 1405 Mn YoY, reflecting a strong PBT recovery of Rs. 1,438 Mn over the previous year (Adjusting for the impact of Loss of Rs. 56 Mn, Loss of Rs. 247 Mn and Gain of Rs. 158 Mn in respective quarters as a result of a Mark to Market non-cash, non-operational loss arising from the Company’s shares in Quess Corp Limited through its Employee Benefit Trust)
• Income from Operations, grew 87% QoQ to Rs. 9,762 Mn (239% growth YoY)
• Cash and bank balances as on Jun 30, 2022 were at Rs. 8,500 Mn up from Rs. 6,399 Mn as on March 31, 2022

Sterling Holiday Resorts reported another profitable quarter with a PBT of Rs. 283 Mn from Rs. 157 Mn (81% growth QoQ)

• Revenue from Operations crossed the Rs. 1 Bn mark for the quarter for the first time, signaling a strong comeback in the sector
• Marked improvement in occupancy to 73% from 52% QoQ
• Increase in ARR by 51% YoY; 35% increase Vs. pre pandemic

SOTC Travel returned to profitability with a PBT of Rs. 83 Mn against a loss of Rs. 21 Mn for Q4 FY22 and a loss of Rs. 160 Mn YoY

• Income from Operations growing to Rs. 1,504 Mn (4.9x QoQ;18.6x growth YoY)
• Return to profitability was led by strong recovery across B2B and B2C segments & the company has a strong pipeline of business for the upcoming quarters

Digiphoto Entertainment Imaging Ltd. PBT grew to Rs. 73 Mn from Rs. 45 Mn for Q4 FY22

• Revenue from Operations grew 7% QoQ to Rs. 1,507 Mn (2.1x growth YoY) led by traction in Southeast Asia and US markets

Strong growth in sales registered across all lines of business in India:

• Foreign Exchange turnover grew by 39% QoQ representing a 66% recovery Vs pre pandemic levels of Q1 FY20
• Corporate Travel turnover grew by over 97% on a QoQ basis; a 87% recovery Vs pre pandemic levels of Q1 FY20
• MICE sales grew by 7.5x QoQ; 44% recovery Vs pre pandemic levels of Q1 FY20. Robust Order book for Q2 & Q3 FY23
• Despite inflated air fares, limited hotel inventory and visa challenges, Leisure Travel grew by over 4x on a QoQ basis. Domestic Travel sales grew by over 3x QoQ; 78% recovery over pre pandemic levels of Q1 FY20. International travel sales grew by over 4.4x QoQ and 18% recovery over pre pandemic levels

“Propelled by our twin focus on customer experience and technology, the Group has staged strong growth this quarter. Our rapid turnaround as a group – with Income from Operations, growing 87% QoQ to Rs. 9,762 Mn (239% growth YoY), reflect the Group’s rapid business recovery.

By effectively reducing costs from Rs 4,811 Mn to 3,260 Mn (a 33% reduction in total costs versus pre pandemic levels) we are also ensuring much greater productivity going forward.

The Group’s strong performance in the quarter was led by Sterling Holidays, DEI, Foreign Exchange and Business Travel segments. With some of our overseas DMS units logging profits already and other units indicating a robust order book, we expect strong growth returning across the Group in the upcoming quarters”

Mr. Madhavan Menon, Managing Director, Thomas Cook (India) Limited

Key Business Updates:

· Foreign Exchange:

o Turnover increased 39% QoQ; a 66% recovery Vs pre pandemic levels (Q1 FY20).

o Transactions grew 42% QoQ

o Card Loads for Q1 FY23 were at US$154Mn: 90% growth QoQ; 93% recovery Vs pre pandemic levels (Q1 FY20) New card issuance in Q1 FY23 up 1.86x QoQ; 90% recovery over Q1 FY20

o The digital partner platform, FX Mate: saw 1382 Partners on-boarded since inception

o A new corporate booking tool FX-Now was launched in the quarter

o Launched educative Study Buddy Video-Blog Series to assist the Overseas Education segment

· Sterling Holidays Resorts:

o 35% increase in ARR Vs. pre pandemic

o Occupancy at 73% against 52% in the previous quarter

o New resorts were launched at Madurai and Kalimpong; Agreements signed for Pench and Igatpuri

o Developed proprietary platform Sterling One enabling partners engage online – in real time

o Focus on expanding distribution network into India’s tier 2-3 towns

· DEI (Digiphoto Global):

o DEI inked agreements with new partners like Modhesh World UAE, LEGOLAND Malaysia Resort and Club Med Cherating Beach; SkyHelix Sentosa and Jewel Changi, Singapore; Alila Kothaifaru and Le Meridien Maldives; Statue of Belief and the VGP Universal Kingdom, India; Museum of Science & Industry, Chicago USA

LEGOLAND Malaysia Resort and Jewel Changi went LIVE operationally this quarter

o DEI renewed its imaging operation terms with 5 partners (Mount Faber, Jakarta Aquarium, Aquaria Phuket, Atlantis Sanya and Resorts World Sentosa) this quarter

· Travel Segment

o Corporate Travel

· Over 97% increase in turnover QoQ; over 87% recovery Vs pre pandemic levels

· 62% increase in tickets issued QoQ; 7.6x% YoY; 86% recovery Vs pre pandemic

· Focus on increased efficiencies through technology: deployment and adoption of online bookings and seamless integration with online systems

· Increase revenue through ancillary services like Cars, Hotels for existing accounts

· Acquisition of local and global accounts including Engineering, Tech, and Media

o MICE: Over 150 physical corporate groups of between 100 to 2500 delegates were successfully operated across India & international destinations like Goa, Hungary, France, Australia

The Company successfully managed several major events during the quarter:

· The prestigious Khelo India Youth Games 2022. Spanning over 15 days, the team ensured exceptional delivery, including transport, accommodation and food for 8500 delegates

· End-to-end management of the spectacular groundbreaking ceremony & event for the world’s first World Health Organization (WHO) Global Centre for Traditional Medicine in Jamnagar, Gujarat

· Thomas Cook India was appointed as the exclusive Event Manager for the first ever Digital Yoga Exhibition organised by Ministry of Ayush, Government of India.

· Ceremonial welcome for the visit of the ex-Prime Minister of UK, Mr. Boris Johnson

o Leisure Travel

· Passenger numbers increased by 208% QoQ; recovery of 31% over pre pandemic levels

· Launched Easy Visa Holidays to short haul international destinations to counter visa challenges for long haul locations

· Focus on domestic spiritual tourism (Char Dham, Vaishno Devi, etc.) and outdoor – adventure trips like biking, hiking, camping

· Introduced Monsoon getaways

· Activated consumer carnivals/roadshows with special offers – Thomas Cook’s Grand Indian Holiday Sale and SOTC’s Super Holiday Sale to accelerate demand

· DMS (Destination Management Service) :

o Desert Adventures: Q1 FY23 witnessed healthy sales aided by business from UK and sub-continent. Focus going forward will be on service quality improvement through new products for luxury clients, nurturing new CIS clients and direct connectivity with hotels

o Private Safaris (East Africa): Sales in Q1 FY23 were encouraging in spite of a traditionally lean season, with healthy volumes from source markets such as US, UK and Germany

o Allied TPro (USA): With progressive easing of restrictions, Q1 FY23 reported positive traction in sales primarily driven by FIT segment

o Asian Trails (Asia Pacific): Re-opening of most destinations (e.g. Thailand, Cambodia, Singapore, Indonesia, Vietnam) with easing of restrictions is translating into an increasing forward booking pipeline

Technology: The Group’s Digital First strategy saw sustained momentum with the launch of

o FX-Now a New Gen Corporate Booking Tool, delivering contactless, seamless and swift foreign exchange services for business travelers

o Go Live of Sales-Operations Application “MANTRA” for the MICE team and NEWGEN that automates vendor payments across Thomas Cook India

India Network Expansion: New franchise outlets were opened in key source markets across metros and Tier 2-3 cities:

o Leisure Travel: Delhi, Hyderabad, Goa, Vadodara Nashik, Tiruchirappalli, Ghaziabad (Franchise outlets)

o Foreign Exchange: Agra; New counter inaugurated at Delhi International Airport

Awards & Partnerships:

• Thomas Cook India Group wins the CNBC-ICICI Lombard Risk Management Award for the 5th time
• Thomas Cook India & SOTC ink MOU with Saudi Tourism Authority
• Thomas Cook India sustains its strategic partnership with Maldives Marketing and Public Relations Corporation (MMPRC)

About Thomas Cook (India) Limited:

Set up in 1881, Thomas Cook India) Limited. (TCIL) is the leading omnichannel travel company in the country offering a broad spectrum of services including Foreign Exchange, Corporate Travel, MICE, Leisure Travel, Value Added Services and Visa Services. It operates leading B2C and B2B brands including Thomas Cook, SOTC, TCI, SITA, Asian Trails, Allied TPro, Australian Tours Management, Desert Adventures, Luxe Asia, Travel Circle International Limited (TCI 勝景), Sterling Holiday Resorts Limited, Distant Frontiers, TC Tours, Digiphoto Entertainment Imaging (DEI), Go Vacation, Private Safaris East & South Africa

As one of the largest travel service provider networks headquartered in the Asia-Pacific region, The Thomas Cook India Group spans 25 countries across 5 continents

TCIL has been felicitated with CNBC-TV18 & ICICI Lombard India Risk Management Award – Travel & Leisure Category 2022 & 2021, The Best Travel Agency – India at TTG Travel Awards 2019, The Best Outbound Tour Operator at the Times Travel Awards 2019 & 2018 and Leading Company with Cutting Edge Travel Innovation at the Times Travel Awards 2018, Silver award for Asia’s Best Integrated Report (First Time) category at the Asia Sustainability Reporting Awards 2019, Best Risk Management-Framework & Systems at the India Risk Management Awards 2019; Best Cash Management Solution – India at the Asset Triple A Treasury, Trade, Supply Chain & Risk Management Awards 2018, Best Outbound Tour Operator at the SATTE Awards 2019, Excellence in Domestic Tour Operations at the SATTE Awards 2018, The French Ambassador’s Award for Exemplary Achievements in Visa Issuance 5 years in a row and the Condé Nast Traveller – Readers’ Travel Awards from 2011 to 2019.

CRISIL has reaffirmed the rating on debt programmes and bank facilities of Thomas Cook (India) Limited – ‘CRISIL A+/Negative on the long-term bank facilities of TCIL and CRISIL A1 rating on the short-term bank facilities and short- term debt of the Company.

For more information, please visit www.thomascook.in

Fairbridge Capital (Mauritius) Limited, a subsidiary of Fairfax Financial Holdings Limited promotes TCIL by holding 72.34% of its paid-up capital and is responsible for the execution of acquisition and investment opportunities.

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