Thomas Cook won’t pay FY20 dividend
Tour operator Thomas Cook India will not pay dividend to its shareholders for the 2019-20 financial year as part of its ~300-crore cash-saving plan.
Global travel industry has been hit due to travel bans and quarantine measures imposed by states to restrict the spread of Covid-19.
Thomas Cook’s pre-tax loss on standalone basis widened to ~83.50 crore in the fourth quarter FY20, compared to ~23.80 crore during the same period last year, the company said in stock exchange filing late on Thursday evening. A one-time stamp duty payment of ~25 crore contributed to the loss. Revenue during the quarter dropped 35.8 per cent to ~251 crore on a year-on-year basis.
Thomas Cook said it had comfortable liquidity position and was focusing on cash conservation and cost optimisation across all aspects of business in view of uncertain demand scenario. The ~300crore savings represent 37 per cent of the costs for calendar year, it said.
“The foreign exchange business classified as an essential service restarted operations in May and turned positive in the same month.
The business is expected to grow its bottom line in the coming months. As of June 17, Thomas Cook and SOTC have reopened 157 retail travel outlets across 77 cities. A wide range of domestic offerings were launched on June 1 that resulted in a steady enquiry funnel and some early confirmed bookings. Demand is expected to pick up going forward,” it said.