Thomas Cook shares plunge 13% after Q3 profit slumps 40%

Shares of Thomas Cook (India) tumbled as much as 13.1% on Tuesday to Rs 142.2 on the BSE after the travel company reported a 40% drop in its net profit for the third quarter ended December 2024, despite a rise in revenue.

The company announced its Q3 earnings results post-market hours on February 3. For the third quarter ended December 2024, Thomas Cook recorded an 8.87% increase in sales, which surged to Rs 2,061.01 crore from Rs 1,893.13 crore in the same period last year.

However, revenue growth was overshadowed by a dramatic 39.82% drop in net profit, which fell to Rs 49.58 crore, compared to Rs 82.39 crore in Q3 FY24. This sharp decline raised questions about the company’s ability to maintain profitability despite higher sales, potentially linked to rising costs or reduced margins.


The company’s Q3 results reflected a mixed bag in its business segments. The travel and related services sector saw a growth of 11% in income from operations, bolstered by a 29% rise in B2C Holidays, although EBIT margins in the sector were squeezed due to geopolitical tensions and currency volatility impacting international Destination Management Services (DMS).

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The company reported strong financial health, with cash reserves of Rs 20,210 crore and a low debt-to-equity ratio of 0.12 at the end of the quarter. Thomas Cook has expressed optimism about the remainder of the fiscal year, citing a healthy demand pipeline and a focus on sustainable growth.

In a separate announcement, the company confirmed that Madhavan Menon, the company's chairperson, would be redesignated as non-executive chairman, effective June 1. Menon, who was reappointed as executive chairman for another five-year term in July 2023, requested the change to a non-executive role, according to the company’s filings.

The stock has been under pressure for some time, falling 20.08% over the past year and witnessing a more significant decline of 34.96% in the last six months.

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