Jet Air­ways Q1 net more than dou­bles

Mint Asia ST - - Inside - BSY HALLY S ETH M OHILE


Air­ways (India) Ltd’s net profit more than dou­bled in the June quar­ter as healthy do­mes­tic growth off­set muted earn­ings from its global op­er­a­tions. It was also bumped up by higher other in­come and gains on for­eign ex­change.

Profit rose to Rs53.5 crore in the three months to June from Rs25.88 crore a year ago.

Rev­enue at the air­line run by Naresh Goyal in­creased 11.4% to Rs5,953.92 crore from Rs5341.26 crore last year. A higher other in­come dur­ing the quar­ter that in­cluded in­come from the com­ple­tion of a real es­tate de­vel­op­ment project and gains on ac­count of for­eign cur­rency fluc­tu­a­tion, also boosted prof­its. To­tal other in­come in­creased to Rs305 crore from Rs202 crore a year ago.

The earn­ings, the firm said in a note, were also helped by a slight in­crease in do­mes­tic av­er­age fares, which ad­vanced 3.4% dur­ing the quar­ter, re­vers­ing an oth­er­wise de­clin­ing trend wit­nessed in the last few quar­ters.

“Jet Air­ways took sev­eral fo­cused mea­sures to re­vi­tal­ize its busi­ness and re­al­ize greater ef­fi­cien­cies in spite of weak­en­ing in­ter­na­tional de­mand, es­pe­cially from the Gulf,” chair­man Goyal said in a state­ment.

Jet Air­ways’s earn­ings missed net profit es­ti­mates. A Bloomberg poll of three an­a­lysts had es­ti­mated a net profit of Rs69.47 crore.

“Had it not been for the higher other in­come, the earn­ings would have been de­pressed like the pre­vi­ous quar­ters,” said an an­a­lyst at a do­mes­tic bro­ker­age, de­clin­ing to be iden­ti­fied. He said un­like its peers, Jet has not been able to take much ad­van­tage of the in­crease in air fares, and the gains have been eroded by higher costs.

The air­line’s to­tal ex­penses dur­ing the quar­ter rose to Rs5,843.8 crore from Rs5,234.4 crore a year ago.

Goyal said low fares, to­gether with the ad­di­tion of ca­pac­ity in the do­mes­tic mar­ket, put pres­sure on yields.

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