MIRA
INFORM REPORT
|
Report Date : |
01.03.2011 |
IDENTIFICATION DETAILS
|
Name : |
KINGFISHER AIRLINES LIMITED |
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Formerly Known As : |
DECCAN AVIATION LIMITED |
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Registered Office : |
UB Tower, Level 12, UB City, 24 Vittal Mallya Road, |
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[ |
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Country : |
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Financials (as on) : |
31.03.2010 |
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Date of Incorporation : |
15.06.1995 |
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Com. Reg. No.: |
018045 |
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CIN No.: [Company
Identification No.] |
L85110KA1995PLC018045 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
BLRD00795E |
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Legal Form : |
Public Limited Liability Company. The Company’s shares are listed on
the Stock Exchanges. |
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Line of Business : |
Airlines Services |
RATING & COMMENTS
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MIRA’s Rating : |
B (26) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
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Status : |
Moderate |
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Payment Behaviour : |
Slow but Correct |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having moderate track. Profitability
of the company is under severe pressure. There appears huge accumulated
losses recorded by the company. Trade relations are reported as fair.
Business is active. Payments are reported to be slow but correct. The company can be considered for business dealings with some caution.
|
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – April 1, 2010
|
Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
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|
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
LOCATIONS
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Registered
Office : |
UB Tower, Level 12, UB City, 24 Vittal Mallya Road, |
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Tel. No.: |
91-80-22272808 |
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E-Mail : |
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Head Office : |
Jakkur Aerodrome,
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Tel. No.: |
91-80-8561378/79/3524/24 |
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Fax No.: |
91-80-8563525/2996529 |
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E-mail : |
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Area : |
5000 Sq. ft |
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Location : |
Owned |
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Corporate Office : |
Kingfisher House, |
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Tel. No.: |
91-22-26262200 / 56499300 |
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Fax No.: |
91-22-67020625 |
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Repair
Facility Office : |
35/2, Cunningham
Road, Bangalore-560 052, |
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Tel. No.: |
91-80-41148190-99 |
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Fax No.: |
91-80-22352645 /
41148849 |
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E-Mail : |
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Website : |
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Area : |
2000 Sq. ft |
|
Location : |
Leased |
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Factory : |
Air Deccan,
214/33, 7th Cross, |
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Tel. No.: |
91-80-56995760/2352646 |
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Fax No.: |
91-80-2352645 |
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E-Mail : |
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Website: |
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Area : |
1500 Sq. ft |
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Location : |
Rented |
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Branches : |
·
C/o.
MISL Cargo Complex, Tel. No. 91-80-56995760 Fax No. 91-80-2352645 ·
202,
Elegant Apartments, Raj Tel./Fax No. 91-40-23308713 E-mail : decanhyd@satyam.net.in
·
10,
Avatar, 27, Tel. No. 91-44- 24454110/3445 Fax No. 91-44- 24457215 ·
E-54,
Anand Niketan, Tel. No. 91-11-24103521/21 Fax No. 91-11-24103522 E-mail : deccan@mantronline.com
·
Near Tel. No. 91-22-25704517 ·
Jakkur
Aerodrome, Tel. No. 90-80-8567523/8567378 E-mail : deccanair@vsnl.com ·
Hanger
# 8, Juhu Aerodrome, Mumbai – 400049, Tel. No. 91-22-26611601 E-mail : daplmum@vsnl.net ·
Tel. No. 91-44-24740560/24714109 E-mail : deplchennai@satyam.net.in ·
Room
# 605, Tel. No. 91-651-2480377/2480326 E-mail : deplranchi@yahoo.co.in
|
DIRECTORS
As on 31.03.2010
|
Name : |
Dr. Vijay Mallya |
|
Designation : |
Chairman and Chief Executive Officer |
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|
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Name : |
Mr. S. R. Gupte |
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Designation : |
Vice
Chairman |
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Name : |
Mr. A K Ravi Nedungadi |
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Designation : |
Director |
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Name : |
Mr. Vijay Amritraj |
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Designation : |
Director |
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Name : |
Mr. Anil Kumar Ganguly |
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Designation : |
Director |
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Name : |
Mr. Piyush G Mankad |
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Designation : |
Director |
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Name : |
Mr. Diwan Arun Nanda |
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Designation : |
Director |
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Name : |
Mr. Ghyanendra Nath Bajpai |
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Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Bharat Raghavan |
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Designation : |
Company Secretary and Chief Legal officer |
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Name : |
Mr. A Raghunathan |
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Designation : |
Chief Financial Officer |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.12.2010
|
Names of Shareholders |
No.
of Shares |
Percentage
of Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
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|
147,537,424 |
55.48 |
|
|
147,537,424 |
55.48 |
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|
|
|
|
|
15,117,321 |
5.69 |
|
|
13,563,180 |
5.10 |
|
|
28,680,501 |
10.79 |
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Total shareholding of Promoter and Promoter Group (A) |
176,217,925 |
66.27 |
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(B) Public Shareholding |
|
|
|
|
|
|
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|
12,279,810 |
4.62 |
|
|
121,650, |
0.05 |
|
|
1,136,595 |
0.43 |
|
|
15,626,840 |
5.88 |
|
|
29,164,895 |
10.97 |
|
|
|
|
|
|
24,936,453 |
9.38 |
|
|
|
|
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20,971,415 |
7.89 |
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|
10,018,412 |
3.77 |
|
|
4,599,783 |
1.73 |
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|
806,947 |
0.30 |
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|
516,959 |
0.19 |
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2,569,477 |
0.97 |
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|
705,800 |
0.27 |
|
Overseas
Corporate Bodies |
600 |
-- |
|
|
62,526,063 |
22.76 |
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Total Public shareholding (B) |
89,690,958 |
33.73 |
|
Total (A)+(B) |
265,908,883 |
100.00 |
|
(C) Shares held by Custodians and against which Depository
Receipts have been issued |
- |
- |
|
Total (A)+(B)+(C) |
265,908,883 |
100.00 |
(1) Indian
Bodies Corporate
Individual shareholders holding nominal
share capital up to Rs.0.100 millionsBUSINESS DETAILS
|
Line of Business : |
Airlines Services |
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Imports : |
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Countries : |
·
·
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Terms : |
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Selling : |
Cash or Credit
(30 days) terms. |
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Purchasing : |
Credit (30 to 60
days) terms. |
GENERAL INFORMATION
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Suppliers : |
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Customers : |
Retailers and End
Users ·
Wipro
Group, ·
TATA
Group, ·
ICICI
Bank/ ICICI Group, |
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No. of Employees : |
3058 |
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Bankers : |
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Facilities : |
Notes: Rs. in Millions
Notes: 1) Short
Term Loan -{including interest accrued and due) of Rs.2065.046 millions
(March 31, 2009 - Rs.1265.724 millions) is secured by personal guarantee of a
director 2)
Amount repayable within one year Rs.19484.495 millions (March 31, 2009-Rs.
15620.911 millions) 3)
In respect of loans aggregating to Rs.12365.627 millions, the lenders have an
option to convert any part of the loan to Equity. The Shares are to be issued
at par or as per prevalent SEBI guidelines. 4)
In case of certain loans, on the occurrence of an event of default, the
lenders also have the right to instruct the Company to convert the loan into
Equity Shares of the Company and the Company shall be under an obligation to
convert the facility into its equity shares, on such right being exercised. |
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Banking
Relations : |
- |
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Auditors : |
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Name : |
B K Ramadhyani
and Company Chartered
Accountants |
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Address : |
4B, 4th
Floor, 68, Chitrapur Bhavan, 8th Main, 15th Cross,
Malleswaram, Bangalore-560 055, Karnataka, India |
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Holding Company : |
United Breweries (Holdings) Limited (from August 1, 2008) |
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Fellow
Subsidiaries : |
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Subsidiary
of the Company : |
Vitae
India Spirits Limited |
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Associate Company |
Kingfisher
Finvest India Limited (up to July 31, 2008) |
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Fellow
Associates : |
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CAPITAL STRUCTURE
As on 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
900000000 |
Equity Shares |
Rs.10/- Each |
Rs.9000.000 millions |
|
10000000 |
6% Redeemable Non Cumulative Preference Shares |
Rs.100/- Each |
Rs.1000.000 millions |
|
|
Total |
|
Rs.10000.000
millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
265908883 |
Equity Shares |
Rs.10/- Each |
Rs.2659.089
millions |
|
9700000 |
6% Redeemable Non Cumulative Preference Shares |
Rs.100/- Each |
Rs.970.000
millions |
|
|
Total |
|
Rs.3629.089 millions |
Notes:
1) 13,
00, 33,350 Equity Shares and 97, 00,000, 6% Redeemable Non Cumulative
Preference Shares were allotted during the year 2008 - 2009 pursuant to the
Scheme of Arrangement under Section 391 to 394 of the Companies Act 1956
approved by the Honourable High Court of Karnataka dated June 16, 2008 which
resulted in demerger of the Scheduled Airline Business of Kingfisher Training
and Aviation Services Limited.
2) Out
of the above, 2,72,84,390 (March 31, 2009 - 2,72,84,390) equity shares of Rs.
10/- each have been allotted as fully paid up bonus shares by capitalisation of
securities premium of Rs.253.750 millions (March 31, 2009 - Rs.253.750
millions) and balance in Profit and Loss Account of Rs.19.094 millions (March
31, 2009 - Rs.19.094 millions).
3)
Number of shares held by the Holding Company and its Subsidiaries (as certified
by the management) Equity Shares - 16,11,00,604 (March 31, 2009 -16,11,00,604*)
Preference
Shares,- 97,00,000 (March 31, 2009 - 97,00,000) *Recast
4) 6%
Redeemable Non-Cumulative Preference Shares are redeemable on such date as may
be decided by the Board of Directors but expiring not later than twenty years
from the date of issue.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
3629.089 |
3629.089 |
1357.985 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
802.219 |
802.219 |
10207.417 |
|
|
4] Employees Stock Option outstanding |
74.817 |
81.094 |
100.879 |
|
|
5] (Accumulated Losses) |
(43210.763) |
(25765.857) |
(9677.557) |
|
|
NETWORTH |
(38704.638) |
(21253.455) |
1988.724 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
48424.255 |
26225.211 |
5923.828 |
|
|
2] Unsecured Loans |
30801.712 |
30430.374 |
3420.000 |
|
|
TOTAL BORROWING |
79225.967 |
56655.585 |
9343.828 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
40521.329 |
35402.130 |
11332.552 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
15545.142 |
15755.166 |
2787.815 |
|
|
Capital work-in-progress |
9806.050 |
16309.465 |
3462.460 |
|
|
Foreign Currency Monetary Item translation Difference Account |
279.827 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
0.500 |
0.500 |
0.000 |
|
|
DEFERREX TAX ASSETS |
24343.651 |
16697.320 |
4984.998 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
1648.774
|
1472.468 |
486.435
|
|
|
Sundry Debtors |
3224.853
|
2742.328 |
271.606
|
|
|
Cash & Bank Balances |
2064.670
|
1718.670 |
2801.223
|
|
|
Other Current Assets |
23.883
|
39.746 |
890.145
|
|
|
Loans & Advances |
17608.858
|
14359.110 |
2146.584
|
|
Total
Current Assets |
24571.038
|
20332.322 |
6595.993
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
26026.604
|
28343.112 |
|
|
|
Other Current Liabilities |
8987.045
|
6603.641 |
6569.976
|
|
|
Provisions |
467.653
|
455.458 |
95.177
|
|
Total
Current Liabilities |
35481.302
|
35402.211 |
6665.153
|
|
|
Net Current Assets |
(10910.264)
|
(15069.889) |
(69.160)
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
45.088 |
166.439 |
|
|
Initial Cost on Leased Aircraft |
1456.423 |
1664.480 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
40521.329 |
35402.130 |
11332.552 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
50679.182 |
52389.812 |
14413.949 |
|
|
|
Other Income |
2031.229 |
636.046 |
1040.483 |
|
|
|
TOTAL (A) |
52710.411 |
53025.858 |
15454.432 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Employees Costs |
6887.549 |
8238.523 |
|
|
|
|
Aircraft Fuel Expenses |
18029.876 |
26026.208 |
|
|
|
|
Aircraft / Engine Lease Rentals |
10938.152 |
11851.322 |
|
|
|
|
Operating and Other Expenses |
23817.306 |
24340.276 |
|
|
|
|
Foreign exchange translation Difference |
502.209 |
2375.354 |
21318.742 |
|
|
|
Costs incurred on account of premature termination of lease/ Purchase
contracts |
3576.547 |
(2446.979) |
|
|
|
|
TOTAL (B) |
63751.639 |
70384.704 |
21318.742 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
(11042.228) |
(17358.846) |
(5864.310) |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
10965.052 |
7785.566 |
778.781 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
(22006.280) |
(25144.412) |
(6643.091) |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
2172.875 |
1715.893 |
182.807 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
(24179.155) |
(26860.305) |
(6825.898) |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
(7706.949) |
5463.762 |
(4944.537) |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
(16472.206) |
(21396.543) |
(1881.361) |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
(25765.857) |
(9677.558) |
NA |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
(43210.763) |
(25765.857) |
(9677.558) |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Passenger / Cargo Revenue |
6846.678 |
2191.199 |
NA |
|
|
|
Miscellaneous Income |
0.000 |
255.500 |
NA |
|
|
|
Profit / (Loss) on transfer of assets |
142.186 |
(51.303) |
NA |
|
|
TOTAL EARNINGS |
6988.864 |
2395.396 |
NA |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Capital Goods |
62.607 |
49.925 |
51.059 |
|
|
|
Stores & Spares |
314.256 |
854.136 |
333.587 |
|
|
TOTAL IMPORTS |
376.863 |
904.061 |
384.646 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
61.95 |
72.33 |
13.85 |
|
QUARTERLY RESULTS
(UNAUDITED)
|
PARTICULARS |
30.06.2010 (Rs. In Millions) |
30.09.2010 (Rs. In
Millions) |
31.12.2010 (Rs. In Millions) |
|
|
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Net Sales |
16405.780 |
13827.240 |
16587.010 |
|
Total Expenditure |
15580.820 |
14611.930 |
15848.780 |
|
PBIDT (Excl OI) |
824.960 |
(784.690) |
738.230 |
|
Other Income |
441.760 |
1329.360 |
172.850 |
|
Operating Profit |
1266.720 |
544.670 |
911.080 |
|
Interest |
3212.360 |
3622.610 |
3395.960 |
|
Exceptional Items |
(44.180) |
(15.080) |
(701.080) |
|
PBDT |
(1989.820) |
(3093.020) |
(3185.960) |
|
Depreciation |
648.870 |
529.870 |
612.800 |
|
Profit Before Tax |
(2638.690) |
(3622.890) |
(3798.7600) |
|
Tax |
(765.220) |
(1314.720) |
(1261.850) |
|
Provisions and Contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
(1873.470) |
(2308.170) |
(2536.900) |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
|
Other Adjustment |
0.000 |
0.000 |
0.000 |
|
Net Profit |
(1873.470) |
(2308.170) |
(2536.900) |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
(31.25)
|
(40.35) |
(12.17)
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(47.71)
|
(51.27) |
(47.36)
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(60.27)
|
(74.43) |
(72.74)
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.62
|
1.26 |
(3.62)
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
(2.96)
|
(4.33) |
8.48
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.69
|
0.57 |
0.99
|
LOCAL AGENCY FURTHER INFORMATION
Company
History
Subject is the largest charter aviation company in
Scheduled
Airline Operations
The
Company is the largest player in the Indian domestic aviation sector and during
the year had the widest reach covering more destinations and carrying more
passengers than any other domestic carrier.
During
the year, the Company had a domestic market share of 22.9% and carried more
than 11 million passengers across both domestic and international sectors, with
a year ending overall fleet of 68 aircraft, having an average schedule of 366
domestic and 12 international flights daily and a route network (as on March
2010) covering 63 domestic and 7 international destinations.
Whilst
the Company's operation has been reflective of the shift in capacity to the low
fare model in line with economic environment, the Company continues to offer
the following world class services:
•
Kingfisher First - Premium Business class of service
•
Kingfisher Class - Premium Economy class of service
•
Kingfisher Red - Low fare class of service comparable to the Economy class of
service in other full fare airlines
During
the year, the Company returned 5 Airbus A320 aircraft, 4 ATR-42 aircraft and 1
ATR-72 aircraft consequent upon the route rationalization program initiated
with a view to maximize operational synergies and cost savings. This resulted
in a 17% (2.953 million seats) drop in capacity deployed over FY 2009. Despite
the drop in capacity by 17% the Company's passenger count decreased by only 2%.
During
the year, the Company undertook a gradual expansion in its international
operations through introduction of new wide body routes to
Major
initiatives were undertaken during the year in respect of distribution costs,
fuel management system, aircraft utilization and general contracts in order to
enforce cost competitiveness.
To
enhance the Company's consumer connect, the Company also undertook various marketing
and commercial initiatives including tie-ups with corporate houses to get
premium business and launched campaigns like the "One stop Connect"
to leverage and promote the Company's network. During the year, the Company won
coveted world airline awards including "Five Star" from Skytrax. The
Company is one of just six airlines worldwide to belong to the top tier Five
Star airline ranking and continues to be
Outlook
The
Company is
The
country's economy is showing signs of recovery with GDP growth estimates
climbing back to over 8%. Passenger traffic is buoyant in current year backed
by improvements in the macro-economic environment and revival in most industry
sectors. The domestic seat capacity is expected to expand lower than the growth
in demand enabling improved load factors for the aviation industry. Intact the
Company has achieved seat factors in excess of 75% in the current year. The
Company's international operations are fast moving towards stabilization. To
further improve consumer connect various marketing initiatives including
enhanced customer loyalty programs have been undertaken by the Company.
The
Company is set to join one world, the world's leading quality airline alliance,
bringing together 11 of the world's biggest and best names, in the airline
industry such as American Airlines, British Airways, Cathay Pacific, Finnair,
Iberia, Japan Airlines, LAN, Malev, Mexicana, Qantas and Royal Jordanian.
The
Company is optimistic of improved performance in the current year, primarily
driven by growth in premium traffic and significant reduction in costs.
Capital
During
the year , the Company's Authorised Share Capital was increased from
Rs.5000.000 millions to Rs.10000.000 millions comprising of 900.000 millions
Equity Shares of Rs.10/- each and 10.000 millions Preference Shares of Rs.100/-
each.
The
Issued, Subscribed and Paid-up Equity Share Capital of the Company remained
unchanged at Rs. 3629.089 millions divided into 265,908,883 Equity Shares of
Rs.10/- each and 9,700,000 6% Redeemable Non-Cumulative Preference Shares of
Rs. 100/- each.
Management Discussion and Analysis Report
Industry
structure and developments
a.
Inspite of the ongoing turmoil in Europe which can upset the growth momentum,
While
the government's share in GDP growth has declined, private sector investment
has picked up. The economy looks on course to achieve 9% growth rate. Most
think-tanks and institutions have put Indian growth for 2010-11 at 8.5% plus.
b. The
global airline industry is now recovering from the woes of 2008-09. Second half
of 2009 had passenger traffic and yields (passenger ticket revenue) both
bouncing up, promising a better future for the airline industry globally.
c.
International Air Transport Association, which represents 230 airlines carrying
93 percent of international traffic, estimates that jet fuel will represent 26
percent of operating costs in 2010, up from 23 percent in 2009. Brent crude oil
will average $79 a barrel, it estimates.
Industry
Operating .Environment
a. As
per the International Air Transport Association (June 7, 2010), the global
airline industry will post a $2.5 billion profit in 2010, reversing two years
of losses, scrapping an estimate for a $2.8 billion deficit as the economy
rebounds. The profit would be the industries first since 2007 and only the
third in a decade after previous results were afflicted by recession, terrorist
attacks, epidemics and wars.
b.
Prospects for Indian carriers have improved in the past few months as economic
growth in Asia and the
c.
Passenger traffic for the Indian Aviation Industry increased 16% in the
year as compared to the year ending
March 2009 and seat factors were upwards of 74% for Jan-Mar'10 quarter owing to
the right alignment of capacity with the demand.
d.
Yields have trended upwards in the year
recovering from the lows early in the year. However, fuel prices have
steadily risen through the year and ended 32% higher than prices at beginning
of the year.
Segment-wise
or product-wise performance of the airline
During
the year , the Company had a domestic market share of 22.9% in FY10. The
airline carried more than 11 million passengers across domestic and international
sectors, with a year ending overall fleet of 68 aircraft, having an average
schedule of 366 domestic and 12 international flights daily and a route network
(as on March 2010) covering 63 domestic and 7 international destinations.
Whilst
the Company's operations has been reflective of the shift in capacity to low
fare model in line with economic environment, the Company continues to offer
the following classes of world class service:
•
Kingfisher First - Premium Business class of service
• Kingfisher
Class - Premium Economy class of service
•
Kingfisher Red - Low fare class of service comparable to the Economy class of
service in other full fare airlines
In the
year , the airline returned 5 Airbus A320 aircraft, 4 ATR-42 aircraft and 1
ATR-72 aircraft consequent upon the route rationalization program initiated
with a view to maximize operational synergies and cost savings. This resulted
in a 17%
(2.953
million Seats) drop in capacity deployed over FY 7:009. Despite the drop in
capacity by 17% you.- Company's passenger count decreased by only 2%
DOMESTIC SECTOR
a. The
Company during the year was the single
largest player in the Indian domestic aviation sector and had the widest reach
covering more destinations and carrying more passengers than any other domestic
carrier.
b. The
airline achieved a seat factor of 71 % in the year , an improvement of 11
percentage points over the previous year. c. As a result of the above measures,
the Company's domestic operations have shown steady improvement.
·
The airline's domestic EBITDAR margin
improved from (-5%) in FY09 to 13% in FY10.
·
The airline's RASK of domestic
operations improved by over 6% for FY10 over FY09.
·
The airline's CASK of domestic
operations reduced by 5% over FY09 on the back of several cost saving
initiatives including expat pilot reduction, fuel consumption reduction, etc.
International
Sector:
During
the twelve-month period ending March 31, 2010, the Company undertook a gradual
expansion in its international operations through introduction of new wide body
routes to Hong Kong, Singapore and narrow body routes to Dubai, Bangkok and
Dhaka. The Company's International Revenues have grown four-fold in comparison
to the previous year ended March 2009. The Company also achieved the highest
market share on the Mumbai-Singapore and Mumbai- Hong Kong sector in less than
one year of launch.
Income
The
Company's total income stood at Rs. 52,710 million during the twelve month period
from April 2009 to
March
2010.
a.
Income from operations formed 96% of total income at Rs. 52,710 million.
Domestic revenues recorded for the year was Rs. 45,220 million as against Rs.
51,370 million in FY09. This was primarily due to the fact that the airline
deployed 17% lesser seats YoY on account of capacity rationalization in its
domestic operations.
b.
During the twelve-month period ending March 31, 2010, the Company's
International revenues increased to Rs. 5,460 million, an increase of over 400%
as compared to Rs. 1,020 million in the previous year ended March 2009. The
growth increased disproportionate to capacity increase.
c.
Other income stood at Rs. 2,031 million during the twelve month period from
April 2009 to March 2010, an increase of over 200% when compared to the
previous year. The other income constituted mainly the following particulars:
• Duty
Free Credit Entitlement of Rs. 220 million.
•
Liability no longer required written back of Rs. 1,285 million.
Expenditure
Total
expenditure including exceptional items stood at Rs.76,890 million during the
twelve month period from April 2009 to March 2010, an increase of 3% when
compared to the previous year ended March 2009. The previous year ended March
2009 reflects a change in method of accounting Maintenance Rent which saw a
reversal of Rs. 5,308 million.
UNAUDITED
FINANCIAL RESULTS FOR THE QUARTER ENDED DECEMBER 31, 2010
|
Particulars |
Quarter Ended June 30, 2010 |
Quarter Ended December 31, 2010 |
|
Unaudited |
Unaudited |
|
|
|
|
|
|
Income
from Operations |
16405.783 |
15834.327 |
|
Income from Serivce |
-- |
752.675 |
|
Expenditure |
|
|
|
a. Employee Costs |
1634.043 |
1680.335 |
|
b. Aircraft Lease Rental |
2403.031 |
2442.752 |
|
c. Aircraft Fuel |
5855.673 |
5401.451 |
|
d Other Operating Expenses |
5688.079 |
6324.778 |
|
e) Depreciation |
648.869 |
612.796 |
|
|
|
|
|
Profit from operations before interest and exceptional
Items |
176.088 |
125.430 |
|
Other income |
441.763 |
172.851 |
|
Profit before interest and exceptional Items |
617.851 |
298.281 |
|
Interest |
3212.360 |
3395.959 |
|
Profit
after Interest but before Exceptional Items |
(2594.509) |
(3097.676) |
|
Exceptional Items |
44.177 |
191.931 |
|
|
|
509.147 |
|
Profit
(+)/Loss(-) from Ordinary Activities before tax |
(2638.686) |
(3798.756) |
|
Tax
expense |
|
|
|
Current Tax |
- |
|
|
Deferred Tax Asset |
(765.219) |
(1261.852) |
|
Fringe Benefit Tax (Net of Provision for FBT written back) |
- |
|
|
Net Profit
(+)/Loss(-) from Ordinary Activities after tax |
(1873.467) |
(2538.904) |
|
Paid up equity share capital (Face value of Rs.10/- per
share) |
2659.089 |
2659.089 |
|
Reserves |
-- |
-- |
|
Earning per share (EPS) Basic and Diluted |
|
|
|
Before exceptional item |
(6.93) |
(9.06) |
|
After exceptional item |
(7.05) |
(9.54) |
|
Public shareholding |
|
|
|
Number of
shares |
89690958 |
89690958 |
|
Percentage
of shareholding |
33.73% |
33.73% |
|
|
|
|
|
Promoters and Promoters group Shareholding- |
|
|
|
a) Pledged /Encumbered |
|
|
|
Number of shares |
120674272 |
47111452 |
|
Percentage of shares (as a % of total shareholding of the
promoter and promoter group) |
68.48 |
33.03 |
|
Percentage of shares (as a % of total share capital of the
company) |
45.38 |
21.89 |
|
|
|
|
|
b) Non Encumbered |
|
|
|
Number of shares |
55543653 |
118006473 |
|
Percentage of shares (as a % of total shareholding of the
promoter and promoter group) |
31.52 |
66.97 |
|
Percentage of shares (as a % of total share capital of the
company) |
20.89 |
44.38 |
Segment
wise Revenue, Results for the quarter ended June 30, 2010
The Company,
considering its present internal financial reporting based on Geographic
segment, has Identified Geographic segment as primary segment.
a) Domestic air transportation within
b) International air transportation outside
|
Particulars |
Quarter Ended June 30, 2010 |
|
Unaudited |
|
|
Segment
Revenue(Passenger, cargo, etc) |
|
|
Domestic |
13238.690 |
|
International |
3167.093 |
|
Total
|
16405.783 |
|
Segment
Result: |
|
|
Domestic |
3015.713 |
|
International |
(345.319) |
|
Total Segment Result |
2670.394 |
|
Interest
and Finance Charges |
3212.360 |
|
Depreciation & Amortisation |
(648.869) |
|
Other
Unallocable expenditure |
(1845.437) |
|
Other
Unallocable Revenue |
441.763 |
|
Exceptional
Item |
|
|
|
|
|
Profit
(Loss) before Tax Expense |
(26338.686) |
|
Tax |
765.219 |
|
Net
Profit (Loss) after Tax |
(1873.467) |
NOTE:
1. The
Segmental results for the quarter ended June 30. 2009 is not shown, as it was not
required for the Company to publish the same.
2. The
Assets and Liabilities of the company is not identifiable to the reportable
segments. Hence no disclosure relating to total segment Assets and Liabilities.
(Capital employed) are made.
Notes:
1) The above financial results which have been
subjected to a limited review by the Statutory Auditors of the Company have
been reviewed by the Audit Committee. The Board of Directors has approved
the said financial results at its meeting held on July 22, 2010.
2) 2
investor complaints were received and disposed off during the quarter ended
June 30, 2010. There were no investor complaints outstanding at the beginning
or at the end of the quarter.
3) The
Board of Directors of the Company is yet to finalize the Employees Stock Option
Plan in respect of the employees transferred to the Company pursuant to the
demerger and transfer of the Commercial
Airline Division Undertaking of the erstwhile Kingfisher Airlines Limited into
the Company.
4)
Deferred Tax Asset is recognized on account of unabsorbed depreciation and
business losses for the quarter ended June 30, 2010 aggregating to Rs.765.219
millions. The management is of the opinion
that there is a virtual certainty supported by convincing evidence against
which such deferred tax will be realized.
5) The
Company has adopted the Exposure Draft on Accounting Standard - 10 (Revised)
Tangible Fixed Assets' which allows costs on major repairs and maintenance
incurred to be amortized over the
incremental life of the asset. The Company has extended the same treatment to
costs incurred on major repairs and maintenance for engines pertaining to
aircrafts acquired on operating lease. Had the Company not adopted this
method of accounting, the loss and after before tax for the year would have
been higher by Rs.93.317 millions and Rs.62.319 millions respectively.
This revised accounting policy has been confirmed by
an independent expert and in the opinion of the management, this accounting
treatment has resulted in a fair depiction of the working results and
the state of the affairs of the Company.
6) The
financial statements of the Company have been prepared on a "going
concern" basis, (despite the Company having incurred substantial losses
and its net worth having been eroded) having regards to the Company registering
profit (before interest and exceptional items) for the quarter ended June 30,
2010, improved economic sentiments, growth in demand, efficiency improvements,
planned cost reductions and the proposals made by the Company to the banks for
debt recast, UB Group support, capital raising plans, etc.
7) Figures for the previous period are as per limited review report filed with the
Stock Exchange. Previous
period year figures
have been reclassified to confirm with
current period year presentation,
FIXED ASSETS
·
·
Building on rented land
·
Building on freehold land
·
Building – leasehold improvement
·
Helicopters
·
Aircrafts
·
Plant and machinery
·
Tools and Equipments
·
Computers
·
Office Equipments
·
Furniture and Fixtures
·
Electrical Installations
·
Vehicles
Press Realease:
KFA reports an EBITDA profit of 127 Cr with a significant improvement in
overall operations.
Mumbai, Tuesday,
22 July 2010: The Aviation Industry has experienced a strong resurgence of domestic
demand in Apr-Jun ’10. Kingfisher has capitalized on this growth and has seen a
12 percentage points increase in load factors to 81% from 69%, and a 5%
improvement in yields over the same quarter last year.
The increase in loads and yields, coupled with several cost reduction
initiatives has led Kingfisher to generate a substantial operating profit of
Rs.1270.000 millions which is an improvement of Rs.1980.000 millions over
Apr-Jun’09.
The loss after tax for the year has reduced by Rs.500 millions (Rs.1870
millions vs. Rs.2370 millions in the previous year).
This performance has been delivered despite an extraordinary cost impact
of more than Rs.350 millions due to the uncontrollable grounding of aircraft.
Q1 FY11 Performance
On an overall basis, the Company has incurred an EBITDA profit of
Rs.1270.000 millions in Q1 FY 11 vs. a loss of Rs.710 millions during the same
period of the previous year – an improvement of Rs.1980 millions.
The Company posted a positive 22% EBITDAR margin of Rs.3670.000 millions
as against a profit of Rs.2260 millions in the corresponding quarter of the
previous financial year- an improvement of Rs.1410.000 millions.
EBITDA profit of Rs.1770.000 millions (despite accounting for Rs.350.000
millions costs of grounded aircrafts) for its domestic operations, compared to
a profit of Rs.760.000 millions in the same period of the previous year - an
improvement of Rs.100.000 millions. The domestic EBITDA margin also improved
from 6% to 13%
This performance was despite intense competition and a 14% reduction in
KFA capacity in terms of seats offered.
Kingfisher Airlines continues to remain “
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on Corporate
Governance to identify management and governance. These factors often have been
predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.45.18 |
|
|
1 |
Rs.72.78 |
|
Euro |
1 |
Rs.62.15 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
3 |
|
OPERATING SCALE |
1~10 |
3 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
2 |
|
--PROFITABILIRY |
1~10 |
2 |
|
--LIQUIDITY |
1~10 |
3 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
2 |
|
--CREDIT LINES |
1~10 |
3 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
26 |
This score serves as a reference to assess SC’s credit risk and
to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.