Thomas Cook Falls 8%, Company Expects 'Zero Impact' on Greek Crisis

Sharemasterindia.com: Shares of leisure travel firm Thomas Cook India and Cox & Kings, which send tourists to Europe fell as much as 8 per cent and 12 per cent respectively on Monday as chances of Greece exiting the euro zone increased as Greece is likely to default on its debt payment.
 
The possible exit of Greece from the euro zone may lead to revenue and foreign exchange losses for companies like Thomas Cook and Cox & Kings, traders felt.


 However, Madhavan Menon, managing director at Thomas Cook India, told NDTV that anticipating higher volatility in euro "we have tightened our hedging norms and we have already hedged our entire foreign exchange exposure both in the foreign exchange business and leisure travel business."

Mr Menon said that euro depreciation will have 'zero impact' on foreign exchange exposure level of the company.

Again, Mr Menon also said that annually tourists visiting to Greece is not very significant compared to other countries in Europe.

Expecting capital control measures by Greece, Thomas Cook had already warned its customers visiting Greece in advance to carry sufficient cash, said Mr Menon.

As of 11.06 a.m. shares in Thomas Cook India traded 5.36 per cent lower at Rs 217.95 apiece, compared to 2.07 per cent fall in the broader Nifty.