|Hot Pursuit||Friday, August 03, 2012 15:10 Hrs IST|
Jet Airways (India) in demand on turnaround Q1 outcome
The result was announced during trading hours today, 3 August 2012.
Meanwhile, the BSE Sensex was down 77.77 points, or 0.45%, to 17,146.59
On BSE, 12.19 lakh shares were traded in the counter as against an average daily volume of 3.7 lakh shares in the past one quarter.
The stock hit a high of Rs 388.60 and a low of Rs 369.90 so far during the day. The stock had hit a 52-week high of Rs 451 on 4 August 2011. The stock had hit a 52-week low of Rs 167 on 29 December 2011.
The stock underperformed the market over the past one month till 2 August 2012, falling 3.69% compared with the Sensex's 1% fall. The scrip, however, outperformed the market in past one quarter, gaining 12.97% as against Sensex's 0.45% fall.
The mid-cap private sector air carrier has an equity capital of Rs 86.33 crore. Face value per share is Rs 10.
Jet Airways (India)'s net sales rose 30.83% to Rs 4344.92 crore in Q1 June 2012 over Q1 June 2011. The company has reported profit for Q1 June 2012 after five straight quarterly losses. The airline posted profit despite foreign exchange losses on account of rupee depreciating close to Rs 170.3 crore.
Jet group total revenue rose 31.4% to Rs 5274.8 crore in Q1 June 2012 over Q1 June 2011. Jet Airways (domestic) yield up 8.9% while JetLite yield up 43.2% year on year basis. Passenger growth in Q1 June 2012 was 10% in domestic compared with same period last year. EBITDAR margin rose to 16.1% in Q1 June 2012 from 9.8% in Q1 June 2011.
Jet Airways (India) said for the quarter in question, severely depreciating rupee against dollar, ever escalating Aviation Turbine Fuel prices (ATF) and the imposition of levies and charges on account of improved infrastructure at Delhi T3, has resulted in an increase in operating costs. However, Yield improvement coupled with increase in demand and stringent cost control measures has helped Jet Group to post Profit after Tax of Rs 36.4 crore (US $ 6.6 million)
Q1 June 2012 saw an increase of around 13% in fuel rates (over Q1 June 2011), which already had a high base last year. The result also includes an amount of Rs170.3 crore or (US $ 30.6 million) on account of foreign exchange translation losses [realised forex loss of Rs116 crore ($20.9 million) and unrealised forex loss of Rs 54.3 crore ($ 9.8 million)], which has impacted the overall results.
Jet Group continues to maintain its leadership position in the Indian aviation industry with the highest market share of 27.9% for the quarter ending June 2012.
Mr. Nikos Kardassis, Chief Executive Officer, Jet Airways (India) said, “Fuel cost increase and depreciation of the Indian Rupee vis-à-vis the US Dollar weighed heavily on the industry's profitability.
The industry has been going through a turbulent time over the last few quarters due to high costs and an excess capacity environment, which has caused financial strain on airlines. Going forward, we do not expect any major capacity increase given the delivery schedules of airlines in the sector.
As India's premier airline, we continue to strive in our endeavor to enhance our guest experience through various strategic marketing and customer friendly initiatives, Jet Airways (India) said in a press release. This will help us to achieve customer delight, which in turn will further help Jet Airways build its industry benchmarks of service excellence and quality, with convenience and comfort.
However, in spite all the challenges, the achievements this quarter would not have been possible without the persistent efforts, commitment and enthusiasm shown by our staff,” the company said.
Domestic operations accounted for 44% of total revenues Rs 2067.7 crore ($371.8 million). Domestic traffic for the Jet Airways Group grew by 10% for the quarter versus same period last year. As against this, industry traffic grew by 1%. Passenger Load factors for Jet Airways domestic operations was 76.2% for Q1 June 2012.
International operations accounted for 56% of total revenues Rs 2643.9 crorre ($475.4 million). The company achieved seat factor of 86.3% in Q1 June 2012 from 80.5% in Q1 June 2011.