The previous year's figures are, however, not comparable with those of the current year as they include the income and expenses pertaining to the traveller's cheques division which are on a cost reimbursement basis with incentives this year, the company said in a statement.

For the nine months ended September 30, 1999, the company posted marginal increase in net profit at Rs 11.48 crore as against Rs 11.43 crore in the previous year. Turnover for the period was Rs 52.67 crore compared with Rs 52.68 crore during the corresponding period of the previous year.

Interest for the third quarter increased to Rs 1.9 crore from Rs 67.8 lakh. Other income rose to Rs 87 lakh from Rs 46 lakh during the previous year. According to a Thomas Cook spokesperson, this income has accrued from investments made by the company in shares and other sources.

During the second quarter, the company's gross profit (after interest but before depreciation and taxation) stood at Rs 6.05 crore, as against Rs 6.04 crore last year.

``The Kargil factor has affected business in this quarter but the internal cost efficiency programmes helped the company to maintain profits. The next quarter is looking up and we hope to do better,'' the spokesperson added.

On its Y2K preparedness, the company said all its internal business critical systems have been made Y2K compliant and added that the estimated costs would be around Rs.4 crore. A business continuity plan has been developed as a backup plan against any possible systems failure.

Insight

Low tourist inflow eats into revenues

Thomas Cook, the one-stop travel shop, has posted an unimpressive third quarter with revenues dipping a marginal 5.94 per cent to Rs 16.80 crore. However, this not surprising considering the low tourist inflows into the country, which was compounded by low outbound tourists also given the advent of the Indian monsoons. Thus, as always TCIL has benefited largely from being the only RBI-approved non-banking forex dealers, which despite the intense competition from money changers enjoys a competitive edge due to the ability to respond quickly to forex fluctuations.

Importantly, stringent internal cost controls appear to have saved the day with expenditure dwindling a solid 10.17 per cent. All of which has helped buoy operating margins.

But these financials aside TCIL's has also thought of new strategies to revitalise its Travel business, which largely comprises of corporate itinerants and leisure travellers. Another factor which could have the largest long term benefit for TCIL is the management of new territories which include the SAARC countries, Mauritius, Seychelles and Burma. The company is also casting its domestic net wider with a continual emphasis on expanding its geographical base in India. Laslty, TCIL's adventurous and innovative plans to enter the credit card business also bode well.