High working capital requirement haunts balance sheet Total 80m of sales proceeds received from sale of the education business has been deployed towards bank guarantees and operational requirement for Meininger. Though Meininger has been and is further expected to drive the growth of the company going forward, high working capital requirements would continue to present significant challenges. Also, Meininger business exposes Cox & Kings to additional risk factors economic slowdown along with forex fluctuations. Additionally, trade receivables levels of FY18, which were guided to be the peak, have not...

During FY19, the company's leisure international revenues increased 23% YoY mainly on the back of improving domestic spend and higher growth in foreign tourist arrival. On the other hand, domestic leisure segment got impacted, to some extent, with disruption in the airline industry. This, in turn, led to annual growth of 5.8% YoY only. Going forward, with improved tourism measures by the government and improved purchasing power, we expect domestic leisure business to continue to outperform in coming years. Hence, we expect leisure revenues to grow at a CAGR of 7-8% in FY19-21E....

Cox & Kings reported a disappointing set of Q3FY19 numbers. Revenues increased 25% YoY to | 499 crore (vs. I-direct estimates of | 457 crore, after adjusting for revenue share of education business) led by strong growth in Meininger business at 37% YoY to | 180 crore led by uptick in occupancy in newer hotels However, on margin front, EBITDA margin fell 755 bps YoY to 23.85% led by higher marketing expenses and additional expenses on account of a delay in launch of two Meininger properties. Thus,...

We had an interaction recently with Mr. Ganesh Duvvuri, Investor Relations Manager, Cox and Kings (India) or CK. Mr. Duvvuri pointed out that the company's NBFC business, including forex operations, have been transferred to Cox and Kings Financial Services (CKFS) which will be listed on the stock exchanges separately in the ongoing quarter. Updating on another recently concluded transaction, he said that CK has sold its entire Holidaybreak (education tour) business to the UK-based Midlothain Capital Partners for an enterprise value of GBP467mn. The proceeds from the sale of Holidaybreak...

During FY18, the company's leisure India revenues increased 12.4% YoY mainly on the back of improving domestic spend and higher growth in foreign tourist arrival. Further, consumer sentiments continued to remain healthy as witnessed in air passenger traffic growth and improved hotel occupancy. In addition, with improved tourism measures by the government, we expect domestic leisure business to continue to...

Cox and Kings' board has entered into an agreement to sell its education business to Midlothian Capital Partners for all cash enterprise value of | 4387 crore (i.e. 467 million). The focus on asset light strategy and reduction in debt burden remain the key main criteria behind this move as education is a capex heavy business. This division reported revenue and EBITDA of | 613 crore and | 242 crore, respectively for FY18. Post this deal, the overall debt burden will come down from | 3907 crore to | 1507 crore. Again, with the transfer of | 250 crore debt to its de-merged entity...

Cox & Kings recently declared its financial results for Q1FY19. The growth was driven by strong growth in International and Menninger businesses. International business constant currency grew by ~8-10% across the geographies. Segment wise results: Leisure India, Leisure International,...

Cox and Kings' reported a mixed set of numbers. Revenues increased 15.8% YoY to | 817.3 crore (vs. I-direct estimate of | 813 crore) mainly led by 41.1% YoY growth in the Meininger segment & 22.6% YoY growth in Leisure - international However, EBITDA declined 20.2% YoY to | 297.9 crore (below Idirect estimate of | 380.8 crore) mainly led by forex loss of | 91 crore (vs. forex gain of | 35 crore in Q1FY18). Excluding the forex impact, the company reported EBITDA growth of 15% YoY to | 389 crore with strong rebound in operating margin of leisure international...

Cox & Kings recently declared its financial results for Q4FY18 and FY18. The growth was driven by growth in Leisure India business and favourable INR movement boosting reported performance of Education segment. Segment wise results: Leisure India, Leisure International and Education reported revenue growth of 20.8%, 2.0%, 84.1% respectively. FY18 was a year of investment across businesses with higher promotional spends in India, up-gradation of some...

Cox & Kings reported a mixed set of numbers. Revenues increased 15.5% YoY to | 532.3 crore (vs. I-direct estimate: | 528.9 crore) mainly led by a 20.8% YoY increase in Leisure India EBITDA increased 75.1% YoY to | 135.6 crore (above I-direct estimate of | 104.7 crore) mainly led by forex gain of | 39 crore (vs. forex loss of | 14 crore in Q4FY17) and improvement in leisure international margins. Excluding forex impact, reported EBITDA grew merely 5.0% mainly due to higher marketing cost and opening of...

Cox & Kings recently declared its financial results for Q3FY18 and 9MFY18. The growth was driven by Meininger operations which witnessed healthy utilisations at the newly opened facilities. Segment wise results: Leisure India, Leisure International, Education and Meininger reported...

EBITDA increased 68.3% YoY to | 167.8 crore (above I-direct estimate of | 121.4 crore) mainly led by forex gain of | 16 crore (vs forex loss of | 17 crore in Q3FY17) and improvement in leisure...

The EBITDA (including forex impact) on IndAS basis from consolidated operations for Q2FY18 stood at `347.7crs, which translates to an 85% Y-O-Y growth from Q2FY17 (`188). The EBITDA margins from operations for Q2FY18 stood at 21.8% (incl. Forex impact) Vs. 7.3% in Q2FY17. The EBITDA (excluding forex impact) from continued consolidated operations according to IGAAP grew by 4% in Q2FY18 at `298 crs. vs. `287 crs. in Q2FY17. IGAAP EBIDTA margins excluding forex impact were at 44.7% vs....

EBITDA increased 92.5% YoY to | 347.7 crore (above I-direct estimate of | 253.9 crore) mainly led by forex gain of | 50 crore (vs. forex loss of | 99 crore in Q2FY17). Excluding forex impact the company reported EBITDA growth of 3.5%YoY Improved economic environment bodes well for domestic business Higher growth of foreign tourist arrival and rising income in spending by domestic travellers has led the company to report healthy growth in its domestic business (up 15% YoY in FY17). Further, consumer sentiments...

ICICI Securities Ltd | Retail Equity Research Cox and Kings' results were above our estimates. While revenues were below our estimate due to currency weakness, EBITDA and PAT were above our estimate. Revenues increased 0.5% YoY to | 705.6 crore (below I-direct estimate of | 781.2 crore) Segment wise, Leisure India and Meininger reported revenue growth of 12.5% YoY and 16.2% YoY but education and leisure international declined 13.7% YoY and 20.9% YoY, respectively...

Net revenues for consolidated operations on the basis ofIndAS for Q1FY17 stood at `705crs, flat Q1FY17 sales of `702crs. This quarter was impacted by multiple factors like GBP depreciation in UK and regulatory changes in India. Reported sales in terms of...

Net revenues for consolidated operations on the basis of IndAS for Q4FY17 stood at `1159crs, which translates to a ~14% Y-O-Y de-growth from Q4FY16 (`1349crs). This de-growth was on account of the base quarter having some sales from a subsidiary sold thereafter & impact of lean season in the education business. According to IGAAP...

ICICI Securities Ltd | Retail Equity Research The company witnessed healthy growth (up 10% YoY) in its domestic business. Consumer sentiments continued to remain healthy as witnessed in air passenger traffic growth, foreign tourist arrivals data led by improvement in purchasing power. Further, with an improved macroeconomic environment, we expect the company's domestic business to continue to perform well, going forward. In addition, C&K; should be a key beneficiary of any positive policy announcements (visa...

The EBITDA (including forex impact) from consolidated operations for Q3FY17 stood at `99.7 crs, which translates to an 8.8% Y-O-Y de-growth from Q3FY16 (`109.3crs).The EBITDA margins from operations for Q3FY17 stood at 7.2% (incl. Forex impact) vs. 6.4% in Q3FY16. The EBITDA margins argins from operations for Q3FY17 stood at 7.2% (incl. Forex impact) vs. 6.4% in Q3FY16.The EBITDA (excluding forex impact) from continued consolidated operations according to IGAAP was flat inQ3FY17 at `117 crs. Vs. `115...

ICICI Securities Ltd | Retail Equity Research Cox and Kings' results were below our estimates. Revenues declined 21.8% YoY to | 414.4 crore (below I-direct estimate of | 559.2 crore) mainly due to 56.3% YoY decline in leisure international revenues (partly due to divestment of explore worldwide in December 2015) and 26.5% YoY decline in education business (due to lean season). However, leisure India revenues increased 5.8% YoY EBITDA margin increased 318 bps YoY to 22.9% (vs. I-direct estimate...