Thomas Cook surprises in Q4, stock remains firm

Operating profit jumps 46%, net profit 70%

Thomas Cook reported impressive set of results in December 2012 quarter with a jump of 46% and 70% in operating profit and net profit respectively.

However, consolidated sales growth of 4.8% was still subdued compared to 8.4% reported in nine months ended December 2012.  

The company reported a topline growth and net profit decline of 10% each in the calendar year 2012, which is not impressive given that the same had jumped 26% and 51% respectively in calendar year 2011.

The management is upbeat about the first quarter and is looking forward to a strong summer booking season. But analysts are cautiously optimistic and would like to wait and watch as the economy will take time to pick up and this would have a lag effect on the company’s financials.

Meanwhile the stock, which has been already battered in the last few months and has underperformed Sensex for last six months, is trading firm in today’s trading session.

Analysts feel the stock may remain under pressure till the company reports a sustainable good performance like in the recently announced December 2012 quarter.