videos | IST

Aiming 15% growth in outbound leisure space, says Cox & Kings

Tour and travel firm, Cox & Kings, on Thursday said the company is aiming 15 percent growth in the outbound leisure sector.

Tour and travel firm, Cox & Kings, on Thursday said the company is aiming 15 percent growth in the outbound leisure sector.
Cox & Kings posted a weak set of first quarter results, while the revenue growth was good, margins , EBITDA (Earnings before interest, taxes, depreciation, and amortisation) and profit after tax (PAT) come down significantly.
In an interview to CNBC-TV18, Peter Kerkar, group chief executive officer said, "The underlying year on year ex- forex EBITDA grew by 15 percent to Rs 389 crore from Rs 339 crore. The impact on EBITDA was due to overseas operation was large, there was a notional loss of Rs 103 crore due."
“The company does not actually pay for this loss, it is just a book entry. We are well hedged because our foreign companies earn in dollars, euros and pounds and so this does not impact us. It is not a cash loss but simply a notional loss,” Kerkar added.
"Going forward, the EBITDA growth will be on similar lines. However, given the rupee fluctuations there could be continuous revaluation of foreign currency loans into our profit and loss," he said.
Talking about the impact of weakening rupee on demand, Kerkar said the company over the years have managed to substantially these risk factors by volume growth.
On hybrid business, Kerkar said the hybrid hotel model is unique because it is recession proof, which is one of the strength for the country, "We are the perfect hot spot for the millennium market."
Cox & Kings is also confident of going from 11,600 beds to 15,000 beds by FY19-end.