Debasis Nandy is a Chartered Accountant and seasoned finance professional and an Associate of the Institute of Chartered Accountants of India. He has completed Executive Development Programs at both Wharton and London Business School. After coming on board in 2008 at Thomas Cook India, Debasis has been the President & Group Chief Financial Officer. With his experience at Piramal Healthcare, Aviva, ICI and Indian Aluminium for over 29 years, he leads the Finance & Accounts team for the Thomas Cook India Group, an organization operating on five continents and in 25 countries. His expertise and leadership are integral to the company’s performance, and he is a key member of the Group Management Committee.
In an exclusive interaction with Finance Outlook India, Debasis Nandy, President & Group CFO of Thomas Cook India, shared insightful perspectives on financial leadership, technology integration, and navigating volatile markets. He outlined how using strategic governance, innovation and resilience supports the growth of businesses in a changing landscape. Debasis also highlighted Thomas Cook’s approach to embracing technology and strengthening stakeholder value as well as insights into the company’s recent financial performance. Below are some key takeaways from his valuable insights.
How should one leverage sustainable financial practices to drive long-term value for stakeholders across its global operations?
Creating sustainable value requires a long-term approach rather than focusing solely on short-term gains. Organizations should put more effort into understanding free cash flow and overall profits, because they show the whole picture of a company’s finances and how well it works. Having strong governance is extremely important and this would encompass values of regulatory compliance, transparency in sharing information and demonstrating ethical standards. When companies operate consistently worldwide, it encourages stakeholders to have faith in and to take responsibility for the company. At Thomas Cook (India) Ltd., we ensure operations are in line with the interests of both stakeholders and ourselves, leading to both lasting growth and confidence.
In what ways has technology, including AI and blockchain, transformed financial management and reporting?
Technology has introduced transformations in managing and reporting finances. Now, businesses are using AI and blockchain, not just as buzzwords, but as effective ways to change the way they operate. Adopting multilingual AI enabled voice services simplifies corporate ticketing, resulting in improving customer experience.
Using RPA in finance, financial teams can optimize routine jobs such as bank reconciliations, customer and vendor reconciliation and invoice generation. Usage of technology such as global consolidation software allow companies to prepare global financial reports in only hours rather than days or weeks. At Thomas Cook, we can see modern technology boosting our everyday performance.
AI is expected to be used much more frequently for analytical reviews and predictions as we move forward. Besides financial elements, technology is essential for engaging customers. For example, AI can help create itineraries for travelers which gives them more convenience and makes their experience easy to personalize.
How should one ensure consistent financial governance, compliance, and risk management across diverse regulatory environments?
Operating smoothly in different regulatory environments calls for a clear well-laid approach plan while being sensitive to differences in environment. We have a federal structure that ensures that a centrally coordinated code of conduct while allowing regions to adapt.
Assessing risks through a well-structured risk management process ensures compliance and stability. Thomas Cook is known for its prowess in risk management, having won many awards consistently for its risk management practices over the years. Risk management is part of our DNA as foreign exchange is a core business segment for forex where the central bank lays down very high regulatory standards.
What financial strategies have been most effective in maintaining profitability and resilience during periods of market volatility?
Resilience begins with financial prudence. Having cash reserves available when needed helps a company get through tough economic times, as the COVID-19 pandemic highlighted. Thomas Cook has always prided itself on a conservative financial strategy which ensured that we are able to tide over tough times and prosper in good times.
As the saying goes, the topline is vanity, profit is sanity and cash is reality. As a company, we always have bene conscious about improving our profit margins and focus on cash generation.
Using an omnichannel model has helped us to expand our sales in a more cost-effective manner and using a shared service centre has helped in controlling costs.
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Given your experience in executive education at Wharton and London Business School, how do you foster continuous learning and leadership development within your finance team?
I am a strong believer in training and development. Employees are better equipped to succeed in a changing business setting if we invest in their learning and development. Apart from management and skill development programsorganised by the HR team, the finance team receives training from subject matter experts on issues such as foreign exchange and tax.
A part of the training is about learning to work in teams. Working on projects helps stimulate teamwork and promotes the growth of employees. This also helps build a team of multi-skilled leaders ready to solve various kinds of problems. By stressing on learning, companies raise worker engagement and lower the likelihood of people leaving. Encouraging growth and new ideas has helped us create a team ready to meet new challenges and seize opportunities.
Thomas Cook India recently announced their fourth-quarter and full-year financial results. Could you give us an overview and some key highlights?
Thomas Cook India has delivered one of its best operational years yet. For the fourth quarter, our earnings rose by 19 percent and operating profit before tax increased by 51 percent. During the full fiscal year, we experienced a 12 percent increase in topline and a 15 percent increase in operating profit.
Foreign exchange, travel, leisure hospitality and digital imaging are the principal segments in our operations. The biggest increases were seen in foreign exchange and travel. Revenues in the quarter rose by 14 percent for the foreign exchange business and the full year saw revenues up by 18 percent, with profits growing 21 percent. Revenues in travel during Q4 rose 25 percent and net profit climbed by 151 percent, despite it generally being a low quarter for the industry. This year, revenues from travel increased by 15 percent and profits rose by 29 percent.
Sterling Holidays added more resorts to its portfolio in the leisure hospitality segment, bringing the total up from 40 to 61. Though revenue remained constantduring the quarter, it rose by 10 percent during the full year. We will be able to see the progress from this expansion in the coming years.
DEI faced challenges during the year due to geopolitical disruptions in the Middle East and our strategic exit from less profitable U.S. operations. However, DEI is poised to grow over the next few years as they expand and improve their operations.
Overall, we managed the challenges of the year steadily and with a clear strategy. The tourism business continues to look positive and provided the situation does not change, I am sure we can build on success in the following year.
