Mumbai: After being in
red for five quarters in a row, Jet
AirwaysGroup flew back into the positive terrain with a net income of Rs
36.4 crore in the June quarter on the back of higher yields and cost
management.
The country's largest airline had posted a net loss of Rs 123.2 crore in the same period last year.
Jet Airways today said the profit would have been much higher had it not been for the huge forex losses on account of the falling rupee which resulted in an outgo of Rs 170.3 crore.
However, a 148 per cent jump in Ebitda(earnings before interest, taxes, depreciation, amortization, and restructuring or rent costs) to Rs 825.5 crore against Rs 333 crore a year ago, cushioned the impact of forex loss.
This also saw its Ebitdar margin nearly double to 16.1 per cent from 8.9 per cent.
The consolidated group revenue grew by 31.4 per cent to Rs 5,274.8 crore during the period driven by a 10 per cent growth in domestic traffic, while the industry growth was a paltry 1 per cent during the quarter.
The domestic yield for Jet Airways rose 8.9 per cent, the same for JetLite rose 43.2 per cent.
Commenting on the turnaround, Group Chief Executive Nikos Kardassis said, "Fuel cost increase and depreciation of the rupee against the dollar weighed heavily on the industry's profitability.
"In fact, ATF price rose by 13 per cent in the quarter y-o-y, against a rise of just 3 per cent in the previous quarter. Overall the fuel cost rose 25.8 per cent to Rs 1,967.4 crore from Rs 1,563.7 crore."
He further said though crude has fallen from the highs of USD 120 a barrel and now range between USD 100-105, benefits of the same have not accrued due to the fall of the rupee, which dipped from 44.70 in Q1 of FY12 to 55.615 in Q1 of FY13, a loss of around 24.4 per cent, putting pressure on our dollar-denominated costs.
"Going forward, we do not expect any major capacity increase given the delivery schedules of airlines in the sector," Kardassis said.
The markets reacted positively and shares of Jet Airways closed higher by 0.69 per cent at Rs 374.05. The company scrip had touched intra-day high of Rs 388.60.
System-wide ASKM (average seat per km) rose by 10.4 per cent to Rs 1,028.5 crore, while system-wide RPKM (revenue per km) rose by 16.3 per cent to 850.2 crore.
The system-wide seat factor jumped to 82.7 per cent against 78.5 per cent. Profit before tax stood at Rs 33.3 crore against a loss of Rs 156.8 crore.
http://economictimes.indiatimes.com/news/news-by-company/earnings/earnings-news/jet-airways-posts-36-4-crore-net-profit-after-5-quarters-of-loss/articleshow/15338137.cmsThe country's largest airline had posted a net loss of Rs 123.2 crore in the same period last year.
Jet Airways today said the profit would have been much higher had it not been for the huge forex losses on account of the falling rupee which resulted in an outgo of Rs 170.3 crore.
However, a 148 per cent jump in Ebitda(earnings before interest, taxes, depreciation, amortization, and restructuring or rent costs) to Rs 825.5 crore against Rs 333 crore a year ago, cushioned the impact of forex loss.
This also saw its Ebitdar margin nearly double to 16.1 per cent from 8.9 per cent.
The consolidated group revenue grew by 31.4 per cent to Rs 5,274.8 crore during the period driven by a 10 per cent growth in domestic traffic, while the industry growth was a paltry 1 per cent during the quarter.
The domestic yield for Jet Airways rose 8.9 per cent, the same for JetLite rose 43.2 per cent.
Commenting on the turnaround, Group Chief Executive Nikos Kardassis said, "Fuel cost increase and depreciation of the rupee against the dollar weighed heavily on the industry's profitability.
"In fact, ATF price rose by 13 per cent in the quarter y-o-y, against a rise of just 3 per cent in the previous quarter. Overall the fuel cost rose 25.8 per cent to Rs 1,967.4 crore from Rs 1,563.7 crore."
He further said though crude has fallen from the highs of USD 120 a barrel and now range between USD 100-105, benefits of the same have not accrued due to the fall of the rupee, which dipped from 44.70 in Q1 of FY12 to 55.615 in Q1 of FY13, a loss of around 24.4 per cent, putting pressure on our dollar-denominated costs.
"Going forward, we do not expect any major capacity increase given the delivery schedules of airlines in the sector," Kardassis said.
The markets reacted positively and shares of Jet Airways closed higher by 0.69 per cent at Rs 374.05. The company scrip had touched intra-day high of Rs 388.60.
System-wide ASKM (average seat per km) rose by 10.4 per cent to Rs 1,028.5 crore, while system-wide RPKM (revenue per km) rose by 16.3 per cent to 850.2 crore.
The system-wide seat factor jumped to 82.7 per cent against 78.5 per cent. Profit before tax stood at Rs 33.3 crore against a loss of Rs 156.8 crore.
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