No Dividend For FY20: Thomas Cook's Rs 300-crore Cash Saving Plan

Tour operator Thomas Cook India will not pay dividend for FY20 to its shareholders as a part of its Rs 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 pre-tax loss on standalone basis widened to Rs 83.50 crore in fourth quarter FY 2020 compared to Rs 23.80 crore during same period due last year, the company said in stock exchange filing late on Thursday evening. A one time stamp duty payment of Rs 25 crore contributed to the loss.

ALSO READ: ICICI Bank sells 3.96% stake in ICICI Lombard for Rs 2,250 crore

Revenue during the quarter dropped 35.8 per cent to Rs 251 crore on a year on year basis.

Thomas Cook said it has comfortable liquidity position and is focusing on cash conservation and cost optimisation across all aspects of business in view of uncertain demand scenario. The Rs 300 crore 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 have resulted in a steady enquiry funnel and some early confirmed bookings. Demand is expected to pick up going forward," it said.