Business Daily from THE HINDU group of publications
Wednesday, Jul 30, 2008
ePaper | Mobile/PDA Version | Audio
Business Daily from THE HINDU group of publications Wednesday, Jul 30, 2008 ePaper | Mobile/PDA Version | Audio |
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Financial Performance Corporate Results - Airlines Web Extras - Forex
Our Bureau Mumbai, July 29 Jet Airways has reported a four-fold increase in net profit for the first quarter, chiefly due to a reversal of depreciation charged in earlier quarters. Net profit rose to Rs 143.38 crore from Rs 31 crore in the corresponding year-ago quarter. The reversal of depreciation amounted to Rs 915.8 crore, by which the company was able to keep itself in the black. Otherwise high fuel prices and start-up costs on international operations negatively impacted the airline’s performance during the quarter, said a company statement. Increasing fuel prices and a slowdown in demand were a drag on the company’s domestic and international performance. Domestic operations accounted for 52 per cent of Jet Airways’ operating revenues (Rs 1,490 crore) compared with 76 per cent in the corresponding quarter last year. International operations accounted for 48 per cent (Rs 1,377 crore) compared with 24 per cent last year. Total income rose 46 per cent, to Rs 2,899 crore (Rs 1,983 crore). In the notes to the Bombay Stock Exchange, the company said it has adjusted foreign currency differences on amounts borrowed for acquisition of fixed assets from overseas amounting to Rs 624 crore to the carrying cost of the assets in compliance with Schedule VI of the Companies Act; this is in variance with the treatment as per AS 11. Had the latter been followed, the net profit before tax for the quarter would have been lower by Rs 622 crore. Stock price of the company was down 1.8 per cent to Rs 439.95 on Tuesday against previous day’s close of Rs 448.
JetLite, the erstwhile Air Sahara and now the 100 per cent subsidiary of Jet Airways, reported a higher net loss at Rs 134.8 crore (loss of Rs 106.9 crore). However, revenues of the subsidiary grew by 18 per cent to Rs 426 crore (Rs 360 crore). On its outlook for the second quarter, the private sector carrier remarked that it is traditionally a low season period. However, reduction in capacities and the increases in fares or surcharges will improve the situation to a large extent. “Crude oil price movement over the last two weeks will help this cause further,” the company statement said. More Stories on : Financial Performance | Airlines | Forex | Jet Airways (India) Ltd
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