Cox & Kings Ltd. (C&K), one of the leading leisure and education travel groups, operates 22 countries across four continents. C&K operates in three key verticals; Leisure, Education, Hybrid Hotels. The company recently announce Q2 results.
Newsbarons provides you the highlights of a concall, where Peter Kerkar, Group CEO, Cox and Kings Ltd. stated “We continue to back our individual divisions to grow organically at market-leading rates.”
NB: How was the quarter as a whole?
Peter Kerkar: All our businesses reported strong organic top-line growth, with standout performances from Leisure – India and Meininger. New hotel occupancy and rates at Meininger are even better than we had anticipated. We are encouraged with the occupancy rates and potential deals in the pipeline.
As for the financials, for the quarter ended Q2FY18, the Net revenues came in at INR 668 crore as against INR 597 crore in Q2 FY17. EBITDA (excluding foreign exchange gains/losses) came in at INR 298 crore. Profit before tax was up 133% y-o-y at INR 269 crore. Profit after tax was up 511% y-o-y at INR 167 crore.
NB: Brief us about your business in different segments?
Peter Kerkar: In the Leisure segment, India grew ahead of its peers amid heightened competitive activity, while International business has stabilized after geopolitical volatility last year.
The Group Company Meininger Hotels currently operates more than 8,500 beds across 17 hotels in 11 European cities. In Q2, the new hotel occupancy and rates were better than expected. We are adding capacity of 15,400 beds within the coming 16 months.
NB: Your outlook for the coming quarters?
Peter Kerkar: We continue to back our individual divisions to grow organically at market-leading rates. We have done major hiring for our rapid expansion.
NB: When do you expect the demerger process to complete?
Peter Kerkar: We expect the foreign exchange demerger process to be completed within the coming six months. Earlier, the board had approved the demerger of its foreign exchange division into a separate financial services company to be named Cox & Kings Financial Service Ltd. (CKFSL).
NB: Brief us about your agreement with SSG Capital Management?
Peter Kerkar: Private Equity firms SSG Capital Management Ltd. has acquired 34.42% stake in the company’s subsidiary Prometheon Holdings (UK) Ltd., which is the holding company of Holidaybreak. SSG Capital also owns 2.72% stake in the company.