Holidaybreak boosts Cox & Kings earnings, outlook

In an interview with CBNC-TV18, Peter Kerkar, executive director, Cox & Kings (India) Ltd stated that debt had to be seen in the perspective of dramatic increase in earnings, thanks to the acquisition of UK education company, Holidaybreak.

Kerkar expects cash flows to improve considerably going ahead. He explained that the acquisition gave the company an edge in education and travel which are the fastest growing sectors across the globe. Kerkar was also upbeat about the company's performance and expects profitability to double by next year.

Here's an edited transcript of his interview with CNBC-TV18. Also watch the accompanying video. 

Q: There is talk among the investor community that after the acquisition of Holidaybreak (HBR), you have acquired a lot of debt. Are you increasing Cox & Kings equity?

A: To set the facts straight, we have acquired a very strong company. We now have a bed bank, including our time-share and our self-catering apartments and hotels at over 170 locations, of over 35,000 beds today. The company has transformed from being a tour operator out of India into being the largest education specialist in the world with an incredibly robust revenue stream.

When you talk about debt, it is to be viewed in perspective of a dramatic rise in earnings and an interest coverage that