Jet Airways swings back to profit, net at Rs.85 crore

Written by feBureau | Updated: Feb 2 2013, 09:18am hrs
Naresh Goyal-owned Jet Airways (India) swung back to profit during the October-December quarter with a net profit of R85 crore on better yields and changes in the network. The return to profit comes ahead of a potential stake sale deal with Etihad Airways of Abu Dhabi. In the same quarter last year Jet had a net loss of R101.22 crore while in the preceding quarter the airline had net loss of R99.67 crore.

During the quarter, Jets net sales rose 6.6% to R3,941.39 crore from R3,696.26 crore in the same quarter last year.

Apart from better yields, some key changes in the network, including the dropping of some unprofitable routes, helped the airline reduce its fuel costs. Year-on-year fuel costs came down 3.6% to R1,688.53 crore from R1,753.34 crore in the same quarter a year ago. Fuel cost as a percentage of net sales stood at around 43% for the third quarter and in the same quarter last year it stood at 47%.

All of our efforts on revenues, costs and network side have resulted in turning around the airlines operations, said Nikos Kardassis, CEO, Jet Airways (India). The combined impact of higher yields and lower costs have resulted in significantly lowering the breakeven seat factor levels in the business. Jet, however, did not comment on the possible stake sale deal with Etihad Airways of Abu Dhabi. It was expected to sign the term sheet on Friday but last minute negotiations over the valuation of Jets shares delayed the deal. Sources maintained that the deal should be completed in the next few days.

The airline achieved an average seat factor of 76.1% while yields or gross revenue per passenger was up 18.6%.

Operationally, the carrier managed to earn a profit on every seat. Revenue per available seat kilometer (ASKM) or the revenue earned on each seat per kilometre stood at R4.63 while the cost per ASKM or the cost for providing each seat stood at R4.26. In essence, before taxes and exceptional items, the airline was making a profit of R0.37 per seat per kilometer, bettering it from R0.08 in the preceding quarter.

Improving yields and decrease in the cost per ASKM excluding fuel has helped to improve operating margins for the quarter, the airline said in a statement. On Friday, Jets share closed almost flat at R622.65.

Subdued market hits TVS Motor Q3 profits

TVS Motor has reported a marginal fall in its net profit for the quarter ended December to R52 crore compared with R57 crore during the same quarter last fiscal. The revenue grew marginally to R1,799 crore compared with R1,775 crore during the same period last year.

The marginal drop in profitability has been due to a combination of several factors, including delayed monsoons, high interest rates, reduction in export incentives from 5.5% to 2% and investment behind brands apart from the overall subdued sentiment, said a press release on Friday.

Marico net rises 21% to Rs.104.55 crore

FMCG major Marico, makers of Saffola edible oil and Parachute hair oil, on Friday reported a 21% increase in consolidated net profit at R104.55 crore for the third quarter ended December, compared with R86.11 crore for the same period of previous fiscal.

It posted an increase of 10.9% in its net sales at R1163.99 crore, against R1,050.02 crore for the same period of 2011-12 fiscal. According to Marico, the current quarter results were not comparable to the corresponding figures of previous year as the current quarter includes the financial results of Marico Consumer Care.

Hindustan Construction narrows loss to Rs.38.5 cr

Hindustan Construction Corporation (HCC) narrowed its standalone net loss for the third quarter ended December, to R38.5 crore against R130 crore in the same quarter last year.

Total income surged by 7.5% to R1,021 crore against about R949 crore in the year-ago period. Operating margins during the quarter stood at 11.25%. The companys order backlog stood at R14,624 crore. The companys subsidiary Steiner posted revenues of R1,128 crore for the three month period to December 2012. The profit of Steiner in the same period was R13.5 crore. HCCs share price closed 3.09% up at R18.35 at BSE on Friday.

Godrej Consumer posts 3% net rise at Rs.172 cr

Godrej Consumer Products (GCPL), makers of Cinthol soaps, reported an increase of 3.07 % in consolidated net profit at R172.2 crore for the third quarter ended December, compared with R167.07 crore during the same period previous fiscal.

Net sales rose to R1,691.31 crore in Q3 FY13, against R1,344.06 crore during the corresponding quarter in FY 1012.

Mahindra Holidays net increases 14%

Mahindra Holidays & Resorts India (MHRIL) has reported a growth of 14% in its net profit to R30.07 crore against R26.45 crore for the same period last year. Total income of the company stood at R179.02 crore for December quarter, against R158.88 crore for the same period last year, a growth of 13%.

Arun Nanda, chairman, MHRIL, said, Our strong performance has continued to give us the confidence in making very large investments in inventory addition. The strategy of combining inventory acquisition with building inventory is one we have successfully leveraged.

Adani Enterprises net up on strength in ports, coal

Adani Enterprise reported a 2% rise in quarterly profit on a consolidated basis, topping analysts estimates, as strength in its port and coal trading segments offset weakness at its power business.

It reported a profit of R416.11 crore, up from R407.28 crore in the year-ago quarter. Total income from operations rose 51% to R13,649.20 crore. Analysts polled by Bloomberg were expecting a net profit of R333.7 crore. However, AEL, which has missed market expectations for net profit in five of the last eight quarters, has been hit by weakness in its power business, which faces rising fuel costs. The power business posted a loss of R133.32 crore, before interest and tax.

Indias power producers are facing higher costs of imported coal because of changes in laws and regulations in exporting countries such as Indonesia and South Africa. Australia also recently introduced a 30% carbon tax for coal, pushing up prices.

Adani Power is currently seeking permission from Indian authorities to pass on more of the increasing cost of imported fuel to customers at its flagship 4,620 MW plant in Mundra, Gujarat. We strongly believe that in the ensuing quarters the power business will get revived as the larger sectoral issues of coal linkages, power evacuation & tariff revisions are suitably addressed, CFO Devang Desai said.

The groups coal trading and ports businesses have been faring much better than the power segment over the past few quarters. Ebit at groups coal trading business rose to R560.87 crore in the latest reported quarter, from R454.26 crore last year while port business reported a 41% rise in Ebit to R737.31 crore. Share of AEL closed down 2% on the BSE on Friday at R245.80.

Our overall performance is expected to improve substantially as the additional capacities get operational & the much awaited power sector measures are implemented, the groups billionaire chairman Gautam Adani said in a media statement.

3i Infotech posts net loss of Rs.73 crore

IT firm 3i Infotech has posted a net loss of R73 crore for the quarter ended December. The companys loss in the corresponding quarter last year stood at R137.5 crore. Net sales for the quarter stood at R364 crore against R350 crore in the corresponding quarter last year. Net loss reduced due to lower tax expenses accounting to its restructuring scheme under the CDR and reduced employee costs to R178 crore during the quarter against R235 crore last year.Share closed 2.16% to R8.04 on the BSE on Friday.