Higher traffic growth has helped private carrier Jet Airways post an increase of 10.5% in net profit at Rs 58.60 crore for the quarter ended March 31, 2010, compared with Rs 53 crore in the same period a year ago. Sales for the period grew 12% at Rs 2,877 crore as against Rs 2,566.21 crore. During the quarter under review, Jet carried 3.24 million passengers, up 28% as against the year-ago period.
Despite expenses for aircraft fuel going up 43% at Rs 846 crore for the March quarter as against Rs 593 crore in the same period last year, the company has shown a stellar performance. Lease rentals also saw an upswing at Rs 215 crore as against Rs 206 crore. However, employee remuneration and benefits expense stood at Rs 306 crore as against Rs 333 crore.
Analysts say that improvement in load factors drove a substantial spurt in profits despite an increase of 8% in expenses at Rs 2,594.71 crore as against Rs 2,402.24 crore.
Jet’s shares were down 3% on the BSE on Thursday to close at Rs 495.20.
For the year ended March 31 2010, the company posted a net loss of at Rs 467.64 crore, up 16% compared with Rs 402.34 crore in the previous year. Sales also declined 10% at Rs 10,622.92 crore as against Rs 11,786.88 crore.
The airline has said that the industry has been adversely affected in the recent past by the general economic slowdown. This, coupled with weak Indian rupee and high fuel cost, significantly impacted the performance and cash flows of the company, resulting it erosion of the net worth.
However, the management is continuously implementing initiatives toward improving operating profits through cost control, route rationalisation, leasing out aircraft and options of raising finances to meet its various short- and long-term obligations.
Nikoss Kardassis, CEO, said: ?The positive turnaround at Jet is a result of constant product innovation, stringent cost management, smart marketing and strong fiscal prudence as well as commitment of staff.?
Kardassis added that in the latest quarter, domestic and international traffic at Jet Airways grew by 26% and 31%, respectively, with the continued buoyancy in the Indian domestic environment. ?The industry load factors have also moved up to the low-to-mid 70% range over the last few months,? he said.
The airline has maintained its leadership position in the Indian aviation industry with the highest market share of 25.8% in the March quarter. Load factors grew to 72.9% in the latest quarter of FY10. Ebitdar margins were at 23% as against 17%.
