Mahesh Iyer, CEO and managing director, Thomas Cook India
Thomas Cook India reported a fourth profitable quarter to a level before taxes, with revenue growth of 19 percent. Although net earnings were reduced year after year due to a greater tax exit, the company is confident of improving its performance in fiscal year 2026, the CEO and managing director, Mahsh Iyer, he says. Business line In an interview
The benefit before Thomas Cook India consolidated taxes grew in a basic and basic annual in fiscal year 2015. What were the main growth drivers?
All our business units had a great year, except for our digital image solutions business. We had strong growth in our Forex business in terms of income and profitability, with a margin of EBIT (profit and tax gain) of 45 percent. We hope to have a similar Ebit margin in Forex in Fy26. In the Forex business, our approach has been to board several segments through the Prepaid route. Prepaid borders have allowed us to grow faster than the market within that segment. On the travel side, the destination management business and the National Games (Thomas Cook was a travel partner) contributed to growth. The long distance business also saw high compared to the first quarter of 2024, and continues to develop in summer as well.
But the long distance business must still be recovered compared to 2019?
We operate in the outgoing travel space in Hong Kong and India. In India, the long distance segment has recovered at 80-85 percent, but the general rate is only 68-72 percent, due to the slowest recovery in Hong Kong. Visa challenges have been a disability on the long distance side. We continually have challenges, but the situation is better than in 2024.
What impact do you see in travel demand after Pahalgam’s terrorist attack? What is the growth guide for fiscal year 26?
There has been softness during the last two weeks, but I would qualify it as temporary. With the decallation and opening of airports, there will be a certain amount of recovery. We believe that there is a reserve cycle available to us and there will be a certain amount of lengthening of the travel period from June to July to August. I think the travel industry should grow by 12-15 percent, and I think we will reflect the growth of the industry. Multiple destinations have been opened, including Japan, Vietnam and other easy visa destinations, and all theses are added to our product portfolio.
Some travel companions are suspending trips to Türkiye and Azerbaijan. What is your point of view?
I will not comment on (other companies). There are no channeling requests, but the consultations have decreased safely. Today, from a market perspective, there are many more destinations for people to travel, and as a travel company, our work is to make people travel.
How are you controlling costs?
We had aimed to maintain our costs at 40 percent below the pre-pandemic level for four years and I am pleased to inform that we have not yet reached the cost base of 2019. The benefits of automation, productivity improvements and common purchases (by Thomas Cook and Sotc) are being developed. We follow a feed cost matrix. Our cost increase will be proportional to income growth. Pre-Pandemics Our cost / veue ratio used to be closer to 85 percent. Now we are operating at 62-63 percent. We continually take tactical and strategic calls with respect to marketing, and investments such as the recent appointment of actor Kartiks as a brand ambassador for our prepaid card without borders.
Are you looking at any acquisition?
Our balance is strong. We are generating around 200 million rupees every year, but now we are not seeing any acquisition.
Posted on May 13, 2025