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Last Updated : Dec 02, 2015 01:54 PM IST | Source: CNBC-TV18

Expect revenue growth of 13% in Oct-Dec: Cox & Kings

Anil Khandelwal, CFO, Cox & Kings, says the sale of Explore Worldwide has been taken with an intention to rebalance the company's international business.

Cox & Kings has sold its adventure tourism business-- Explore Worldwide, a subsidiary of Holidaybreak -- for about Rs 260 crore.

The move aims to rebalance the company's international business and to sharpen focus on its three segments-- education, leisure and Meininger Hotels, Anil Khandelwal, CFO of Cox & Kings tells CNBC-TV18.

The company posted a 13 percent revenue growth in the first half of this year, he says, adding he expects similar growth in the second quarter.

Cox & Kings will use funds from this deal to pare debt at Holidaybreak level, Khandelwal adds. The company's long term debt stands at Rs 3,227 core.

Earlier in June 2014, the company had sold its camping business for Rs 892 crore.

Below is the verbatim transcript of Anil Khandelwal's interview with Latha Venkatesh & Sonia Shenoy on CNBC-TV18.

Latha: Can you take us through what this will bring in in terms of money and what will you do with that money?

A: We have sold our explore division which is subsidiary of Holidaybreak, UK for a consideration of 25.8 million GBP. This division sale has completed yesterday and substantially the fund will be used to reduce the debt at Holidaybreak level.

Sonia: The fund that you will get, Rs 260 crore, are still quite small compared to the overall debt that the company is sitting at, which is more than Rs 3000 crore, any other subsidiaries or noncore businesses that you would be looking to offload anytime soon?

A: Let me clarify that the whole driving factor for this sale has not been to reduce the debt. It is a strategic rebalancing of our international leisure portfolio. As you would be aware, our last year's net revenues were Rs 2,270 crore and an EBITDA of around Rs 863 crore. So from EBITDA to debt level, we are fairly robust as far as balance sheet is concerned.

Latha: What were the assets on the books of Explore Worldwide? Will there be some loss of sales. What is the impact on the revenue?

A: This division had net revenues of 11 million pounds and EBITDA was around 2.3 million pounds and we have sold at 25.8 million pounds. This is extremely asset light business division which we have sold and there are marginal assets which have been less than 1 million pounds, which has gone through this division, so relatively no impact in terms of balance sheet fixed assets as such.

Latha: Are there any other businesses that you are thinking of selling off, so as to sharpen focus on others?

A: No, from our perspective the statute policy that we will continue to sharpen our focus in the three major verticals which is the education, hybrid hotels and the leisure business, so from our perspective there is no such activity which we foresee in terms of selling off any division in the future.

Sonia: Can you give us the outlook for the second half of the year and what do you expect as far as the overall revenues and profitability growth is concerned?

A: I may not be able to give you the percentage growth anticipated for each but from our perspective we had a net revenue increase of around 13 percent in H1 and with the current booking trend which I am seeing for Q3, we would be in line with the expectations of having similar growth in H2 as well.

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First Published on Dec 2, 2015 09:30 am
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