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Jet Airways inches up after Q1 results

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Capital Market
Last Updated : Aug 08 2013 | 11:59 PM IST

Jet Airways (India) inched up 0.59% to Rs 325.60 at 15:30 IST on BSE after the company reported a net loss of Rs 355.38 crore in Q1 June 2013 compared with a net profit of Rs 24.70 crore in Q1 June 2012.

The result was announced during trading hours today, 8 August 2013.

Meanwhile, the S&P BSE Sensex was up 124.46 points, or 0.67%, to 18,789.34.

On BSE, 8.05 lakh shares were traded in the counter as against an average daily volume of 13.25 lakh shares in the past one quarter.

The stock hit a high of Rs 331.65 and a low of Rs 313.60 so far during the day. The stock had hit a 52-week low of Rs 301.85 on Wednesday, 7 August 2013. The stock had hit a 52-week high of Rs 688.60 on 25 April 2013.

The stock had underperformed the market over the past one month till 7 August 2013, sliding 27.28% compared with the Sensex's 4.26% fall. The scrip had also underperformed the market in past one quarter, falling 46.56% as against Sensex's 6.15% fall.

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The mid-cap company has an equity capital of Rs 86.33 crore. Face value per share is Rs 10.

Jet Airways (India)'s revenues fell 12.34% to Rs 4064.40 crore in Q1 June 2013 over Q1 June 2012.

Earnings before interest, tax, depreciation and rentals (EBITDAR) fell 37.85% to Rs 459.60 crore in Q1 June 2013 over Q1 June 2012. EBITDAR margin were reported at 11.5% in Q1 June 2013 compared with 16.1% in Q1 June 2012.

The company reported a system wide seat factor of 78.4% in Q1 June 2013 compared with 82.7% in Q1 June 2012.

The company said that the steep fall in the rupee against the dollar during the quarter along with sharp rise in airport charges at key metros and high fuel prices impacted the results for the quarter.

However, higher yields and continued cost control measures helped the company post an operating profit of Rs 529.90 crore. The result includes an amount of Rs 131.50 crore on account of foreign exchange translation losses.

The hike in payroll costs due to increments paid in March 2013, which amounts to Rs 23.70 crore impacted the numbers in Q1 June 2013 while were not part of costs for Q1 June 2012.

The cancellation of certain long haul flights in Q2 and Q3 of fiscal year ended March 2013 meant that there were instances of aircraft on ground during the quarter. The impact of this was Rs 122.80 crore.

The above impacts form Rs 278 crore of the losses in Q1 June 2013 and if not for these, the operating results would have been strong for the quarter.

In its outlook, Jet Airways (India) said that in Q2 September 2013 domestic traffic trends will reflect seasonality. The industry capacity growth is expected to be very modest and this will result in overall yields and seat factors remaining stable for the balance part of the year. International business continues to be strong with high seat factors. It will also reflect high seasonality. The significant devaluation of Indian rupee and the resultant higher fuel prices, impact of increases in airport charges by private airport remains an area of concern. This along with weak environment could affect the operating results in short term.

Jet added that passing on high operating costs to the passengers fully in the short term may not be possible, especially because the current quarter is the weakest in terms of seasonality. The company said it focus remains to keep discretionary costs to its bare without compromising on safety, security and quality standards. The company will strive to improve route rationalisation, aircraft utilisation, enhance ancillary revenues and increase presence in direct channels of distribution.

Equity infusion, replacing high costing debt through cheaper debt will help to deleverage balance sheet, company added.

Jet Airways currently operates a fleet of 113 aircraft. With an average fleet age of 5.26 years, the airline has one of the youngest fleet of aircraft in the world. Flights to 76 destinations span the length and breadth of India and beyond, including Abu Dhabi, Bahrain, Bangkok, Brussels, Colombo, Dammam, Dhaka, Doha, Dubai, Hong Kong, Jeddah, Kathmandu, Kuwait, London (Heathrow), Muscat, New York (Newark), Riyadh, Sharjah, Singapore and Toronto.

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First Published: Aug 08 2013 | 3:47 PM IST

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