Reflects Company’s leadership position in Forex & Travel Services and Balance Sheet strength

Rationale:

• Rapid recovery with revenue of more than Rs. 1,400 crore in the first nine months of fiscal 2022, against Rs. 946 crore in full fiscal 2021
• Dominant position in the Foreign Exchange business
• Strong brand equity in travel-related services
• Healthy liquidity with limited external debt and improved pace of recovery
• Effective and sustained cost prudence Total cost savings of more than Rs. 650 crore in fiscal 2021
• Strong parental support from Fairfax Financial Holdings Ltd.

 CRISIL has reaffirmed its ratings assigned to the bank facilities, debt programmes and corporate credit rating of Thomas Cook (India) Limited (TCIL), India’s leading omnichannel travel services company, at ‘CRISIL A+/CCR A+/ Negative/ CRISIL A1’.

The ratings continue to reflect strong parental support from Fairfax Financial Holdings Ltd., healthy liquidity with limited external debt supporting the capital structure and improved pace of recovery post both the first, second and omicron wave of the Covid-19. The ratings also factor in the Thomas Cook India Group’s dominant position in the Foreign Exchange – business and strong brand equity in travel-related services.

Post the outbreak of the pandemic in the first half of fiscal 2021, the Group’s forex and travel businesses witnessed gradual recovery in the second half, with improving air traffic and demand for short domestic holidays. However, during the first quarter of fiscal 2022, the severe second wave of the pandemic impacted recovery during the peak travel season of summer holidays. Subsequently, driven by high pent-up demand, increased vaccination coverage and improved customer confidence in travel, the business witnessed healthy recovery from the second quarter onwards, with TCIL reporting positive consolidated earnings before interest, tax, depreciation and amortisation (Operating EBITDA) during the third quarter.

TCIL’s business has witnessed material improvement over the fiscal 2021, with reported consolidated revenue of more than Rs. 1,400 crore in the first nine months of fiscal 2022, against Rs. 946 crore in full fiscal 2021. The Company’s Balance Sheet highlights an improvement on account of conversion of OCCRPS to equity of

Rs. 303 crore and long term loan (ECLGS) taken of Rs. 37 crore.

Mr. Madhavan Menon, Managing Director, Thomas Cook (India) Limited said, “CRISIL’s reaffirmed ratings are a strong affirmation of Thomas Cook India’s leadership position and Balance Sheet strength. The ratings are also reflective of our strong brand equity in the forex and travel businesses, coupled with the strong support from our majority shareholder Fairfax Financial Holdings. The reimagining of our businesses coupled with accelerated digital transformation and focussed cost management have played a key role in navigating an extremely challenging period. With the reopening of Indian skies and international borders, we are optimistic of a rapid return to normalcy.”