MIRA
INFORM REPORT
|
Report Date : |
12.03.2013 |
IDENTIFICATION DETAILS
|
Name : |
JET AIRWAYS
(INDIA) LIMITED (w.e.f. 28.12.2004) |
|
|
|
|
Formerly Known
As : |
JET AIRWAYS INDIA
PRIVATE LIMITED |
|
|
|
|
Registered
Office : |
Siroya Centre, Sahar Airport Road, Andheri (East), Mumbai – 400 099, Maharashtra |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2012 |
|
|
|
|
Date of
Incorporation : |
01.04.1992 |
|
|
|
|
Com. Reg. No.: |
11-066213 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs. 863.300 millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L99999MH1992PLC066213 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMJ00366C / MUMJ06594A
/ MUMJ05793ES |
|
|
|
|
Legal Form : |
A Public Limited
Liability Company. The company’s shares are listed on the Stock Exchanges. |
|
|
|
|
Line of Business
: |
Providing passenger and cargo air transportation services.
|
|
|
|
|
No. of Employees
: |
12849 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
B (39) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
|
Maximum Credit Limit : |
USD 5200000 |
|
|
|
|
Status : |
Moderate |
|
|
|
|
Payment Behaviour : |
Slow but correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a leading private sector airline in It is established and a reputed company having a moderate track
record. It has incurred heavy loss during 2012. Financial position of the
company is affected due to huge external borrowing. However, trade relations are reported to be fair. Business is active.
Payments are reported to be slow but correct. The company can be considered for business dealing 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 – June 30, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
India is developing into an open-market economy, yet traces of
its past autarkic policies remain. Economic liberalization, including
industrial deregulation, privatization of state-owned enterprises, and reduced
controls on foreign trade and investment, began in the early 1990s and has
served to accelerate the country's growth, which has averaged more than 7% per
year since 1997. India's diverse economy encompasses traditional village
farming, modern agriculture, handicrafts, a wide range of modern industries,
and a multitude of services. Slightly more than half of the work force is in
agriculture, but services are the major source of economic growth, accounting
for more than half of India's output, with only one-third of its labor force.
India has capitalized on its large educated English-speaking population to become
a major exporter of information technology services and software workers. In
2010, the Indian economy rebounded robustly from the global financial crisis -
in large part because of strong domestic demand - and growth exceeded 8%
year-on-year in real terms. However, India's economic growth in 2011 slowed
because of persistently high inflation and interest rates and little progress
on economic reforms. High international crude prices have exacerbated the
government's fuel subsidy expenditures contributing to a higher fiscal deficit,
and a worsening current account deficit. Little economic reform took place in
2011 largely due to corruption scandals that have slowed legislative work.
India's medium-term growth outlook is positive due to a young population and
corresponding low dependency ratio, healthy savings and investment rates, and
increasing integration into the global economy. India has many long-term
challenges that it has not yet fully addressed, including widespread poverty,
inadequate physical and social infrastructure, limited non-agricultural
employment opportunities, scarce access to quality basic and higher education,
and accommodating rural-to-urban migration.
|
Source
: CIA |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CRISIL |
|
Rating |
Series 1 PTCs = AAA (Withdrawn) |
|
Rating Explanation |
Highest degree of safety and lowest credit
risk. |
|
Date |
12.02.2013 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
LOCATIONS
|
Registered Office /
Corporate Office : |
Siroya Centre, |
|
Tel. No.: |
91-22-61211000 / 28505080/ 4271/ 5627/ 5628/ 5629 |
|
Fax No.: |
91-22-6121s1950 / 28560622 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Engineering Office
: |
Jet Airways Hanger, Opposite Indian Airlines Sports Club, Kalina, Santacruz (East), Mumbai – 400029, Maharashtra, India |
|
Tel No.: |
91-22-26675112 / 5120 |
|
Fax No.: |
91-22-26675242 |
|
|
|
|
Branch Office
: |
Located at:- · Mumbai · Ahmadabad · Goa · Kochi · Kolkata · Mangalore · Bangalore · Hyderabad · Chennai · Coimbatore · Delhi |
DIRECTORS
As on 31.03.2012
|
Name : |
Mr. Naresh Goyal |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. Ali Ghandour |
|
Designation : |
Director |
|
Date of Birth/ Age : |
28.05.1931 |
|
Qualification : |
Aeronautical Engineer from New York University, U.S. A. |
|
Expertise in specific functional area : |
Mr. Ghandour, a Jordian national, has over 50 years of experience in the civil aviation industry. He was an advisor of the late King Hussein of Jordan and was earlier the Chairman of the Royal Jordanian Airlines. He has also been associated with the development of a number of airlines in Middle East. |
|
|
|
|
Name : |
Mr. Victoriano P. Dungca |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Javed Akhtar |
|
Designation : |
Director |
|
Date of Birth/ Age : |
17.01.1945 |
|
Qualification : |
Bachelors degree in Arts |
|
Expertise in specific functional area : |
Mr. Akhtar, a nominated Member of the Rajya Sabha, is a well-known scriptwriter,
lyricist, poet, activist and is a famous media personality. Mr. Akhtar was
awarded the Padma Bhushan in 2007. Mr. Akhtar has won several awards,
including the National Award for Best Lyricist five times. |
|
|
|
|
Name : |
Mr. I.M. Kadri |
|
Designation : |
Director |
|
Date of Birth/ Age : |
01.12.1929 |
|
Qualification : |
Bachelors degree in Engineering from |
|
Expertise in specific functional area : |
Mr. Kadri, is a member of the Council of Architecture, |
|
|
|
|
Name : |
Mr. Aman Mehta |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Yash Raj Chopra |
|
Designation : |
Director |
|
Date of Birth/ Age : |
18.09.1932 |
|
Qualification : |
Bachelor of Arts |
|
Expertise in specific functional area : |
Mr. Chopra, an Indian national, has been appointed a Director of the Company since April 2006. Mr. Chopra has had a distinguished career spanning over five decades in the Indian film industry. His work has been recognized in India and overseas and he has received several prestigious awards for his outstanding contribution to Indian Cinema. He is also the Chairman of one of India’s most vibrant, innovative and successful film production houses of all times – Yash Raj Films. |
|
|
|
|
Name : |
Mr. Gaurang Shetty |
|
Designation : |
Whole-time Director and Manager |
|
Date of Birth/ Age : |
08.10.1956 |
|
Qualification : |
Bachelor of Science |
|
Expertise in specific functional area : |
Mr. Shetty, an Indian national, joined the Company in 1996 as General Manager – Marketing and was promoted to Vice President – Marketing in 2004. Currently, Mr. Shetty is Senior Vice President – Commercial. Prior to joining the Company, he was with British Airways as its Marketing Manager – South Asia. He is currently responsible for Customer Services, Cargo, Cabin Crew and Marketing departments. |
KEY EXECUTIVES
|
Name : |
Ms. Monica Chopra |
|
Designation : |
Company Secretary and Associate Legal Counsel |
|
|
|
|
Name : |
Capt. Hameed Ali |
|
Designation : |
Chief Operating Officer |
|
|
|
|
Name : |
Mr. Sudheer Raghavan |
|
Designation : |
Chief Commercial Officer |
|
|
|
|
Name : |
Ms. Anita Goyal |
|
Designation : |
Executive Vice President - Revenue Management
and Network Planning |
|
|
|
|
Name : |
Mr. Sitham Nadarajah |
|
Designation : |
Executive Vice President - Technical |
|
|
|
|
Name : |
Mr. M. Shivkumar |
|
Designation : |
Senior Vice President – Finance |
|
|
|
|
Name : |
Mr. Gaurang Shetty |
|
Designation : |
Senior Vice President - Commercial |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.12.20132
|
Category of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
10995 |
0.01 |
|
|
10995 |
0.01 |
|
|
|
|
|
|
69057210 |
79.99 |
|
|
69057210 |
79.99 |
|
Total shareholding of Promoter and Promoter Group (A) |
69068205 |
80.00 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
3524129 |
4.08 |
|
|
304292 |
0.35 |
|
|
2430864 |
2.82 |
|
|
3690776 |
4.27 |
|
|
9950061 |
11.53 |
|
|
|
|
|
|
2485186 |
2.88 |
|
|
|
|
|
|
3950563 |
4.58 |
|
|
335752 |
0.39 |
|
|
544244 |
0.63 |
|
|
159742 |
0.19 |
|
|
653 |
0.00 |
|
|
383849 |
0.44 |
|
|
7315745 |
8.47 |
|
Total Public shareholding (B) |
17265806 |
20.00 |
|
Total (A)+(B) |
86334011 |
100.00 |
|
(C) Shares held by Custodians and against which Depository
Receipts have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total (A)+(B)+(C) |
86334011 |
0.00 |
%20LIMITED%20-%20212835%2012-Mar-2013_files/image002.gif){kind=small}
%20LIMITED%20-%20212835%2012-Mar-2013_files/image003.gif){kind=small}
%20LIMITED%20-%20212835%2012-Mar-2013_files/image004.gif){kind=small}
BUSINESS DETAILS
|
Line of Business : |
Providing passenger and cargo air transportation services.
|
GENERAL INFORMATION
|
No. of Employees : |
12849 (Approximately) |
||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Bankers : |
· Abu Dhabi Commercial Bank · AXIS Bank Limited · Banca Popolare Di Milano · Bank of America N.A. · Bank of Baroda · Bank of India · Banque Nationale de Paris · Barclays Bank Plc · Canara Bank · Citibank N.A. · Corporation Bank · Credit Agricole S.A. (formerly known as Calyon Bank) · DBS Bank Limited · Deutsche Bank AG · DVB Bank SE · First National Bank · HDFC Bank Limited · ICICI Bank Limited · IDBI Bank Limited · Indian Overseas Bank · ING Belgium SA / N.V. · JP Morgan Chase, N.A. · Kotak Mahindra Bank Limited · Lloyds Bank (formerly known as Bank of Scotland Plc) · National Bank of Kuwait · Punjab National Bank · Standard Chartered Plc · State Bank of India · Syndicate Bank · The Royal Bank of Scotland N.V. (formerly known as ABN AMRO Bank) ·
Yes Bank Limited |
||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Facilities : |
Rs.
In Millions
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Banking Relations : |
-- |
|
|
|
|
Auditors 1 : |
|
|
Name 1 : |
Deloitte Haskins
and Sells Chartered
Accountants |
|
Address : |
12, |
|
|
|
|
Auditors 2 : |
|
|
Name 2 : |
Chaturvedi and
Shah Chartered
Accountants |
|
Address : |
|
|
|
|
|
Legal Advisors : |
Gagrats |
|
|
|
|
Holding Company
: |
Tail Winds Limited |
|
|
|
|
Wholly Owned
Subsidiary Company (Control exists) : |
Jet Lite ( |
|
|
|
|
Enterprises over which controlling shareholder of
Holding Company and his relatives are able to exercise significant influence
directly or indirectly : |
· Jetair Private Limited · Jet Airways LLC · Trans Continental e Services Private Limited · Jet Enterprises Private Limited · Jet Airways of India Inc. · India Jetairways Pty Limited · Jet Airways Europe Services N.V. · Jetair Tours Private Limited · Global Travel Solutions Private Limited |
CAPITAL STRUCTURE
As on 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
180000000 |
Equity Shares |
Rs.10/- each |
Rs.1800.000 millions |
|
20000000 |
Preference Shares |
Rs.10/- each |
Rs.200.000 millions |
|
|
Total |
|
Rs.2000.000
millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
86334011 |
Equity Shares |
Rs.10/- each |
Rs.863.300
millions |
|
|
|
|
|
a. Reconciliation of
Number of Shares
|
Particulars |
As at 31st March, 2012 |
|
|
|
Number of shares |
Rs. In millions |
|
Equity Shares : Face value of Rs. 10/- each |
86,334,011 |
863.300 |
|
As at the beginning of the year As at the end of the year |
86,334,011 |
863.300 |
b. Shareholders holding more than 5% of equity share capital and shares held by Holding / Ultimate Holding Company
|
Particulars |
As at 31st March, 2012 |
|
|
|
Number of shares |
Percentage of holding |
|
Name of the
Shareholder |
|
|
|
Tail Winds Limited (Holding Company) and its nominee |
69067205 |
80.00% |
c. Terms / Rights attached to Equity Shares
The Company has only one class of equity shares having a par value of Rs. 10/-. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends if any, in Indian rupees. The dividend proposed if any, by the Board of Directors is subject to the approval of the Shareholders in the ensuing Annual General Meeting.
In the event of liquidation of the Company, the holders of equity
shares will be entitled to receive any of the remaining assets of the Company,
after distribution of all preferential amounts. The distribution will be in
proportion to the number of equity shares held by the Shareholders.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
863.300 |
863.300 |
863.300 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
12354.700 |
25180.100 |
32847.300 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
(7290.800) |
|
|
NETWORTH |
13218.000 |
26043.400 |
26419.800 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
35288.900 |
35669.900 |
38361.800 |
|
|
2] Unsecured Loans |
73388.600 |
79337.000 |
99233.000 |
|
|
TOTAL BORROWING |
108677.500 |
115006.900 |
137594.800 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
336.300 |
1375.000 |
|
|
|
|
|
|
|
|
TOTAL |
121895.500 |
141386.600 |
165389.600 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
137824.500 |
136158.100 |
144299.200 |
|
|
Capital work-in-progress |
20.700 |
319.800 |
2996.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
16459.600 |
17250.900 |
17450.000 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
7783.500
|
7111.800 |
5847.900 |
|
|
Sundry Debtors |
12664.400
|
9657.700 |
8107.700 |
|
|
Cash & Bank Balances |
4978.800
|
5877.100 |
7728.300 |
|
|
Other Current Assets |
1409.400
|
0.000 |
0.000 |
|
|
Loans & Advances |
29060.100
|
30498.400 |
16138.100 |
|
Total
Current Assets |
55896.200
|
53145.000 |
37822.000 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
31851.800
|
20900.400 |
17255.500
|
|
|
Other Current Liabilities |
54667.200
|
42717.900 |
18480.000
|
|
|
Provisions |
1786.500
|
1868.900 |
1442.100
|
|
Total
Current Liabilities |
88305.500
|
65487.200 |
37177.600 |
|
|
Net Current Assets |
(32409.300)
|
(12342.200) |
644.400
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
121895.500 |
141386.600 |
165389.600 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
148159.100 |
127367.600 |
104696.400 |
|
|
|
Other Income |
3571.700 |
1955.100 |
1532.800 |
|
|
|
TOTAL (A) |
151730.800 |
129322.700 |
106229.200 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Aircraft Fuel Expenses |
66306.700 |
43667.000 |
|
|
|
|
Employee Benefit Expenses |
15994.900 |
13396.900 |
|
|
|
|
Selling and Distribution Expenses |
13616.700 |
12617.200 |
91355.000 |
|
|
|
Aircraft Lease Rentals |
9060.000 |
8443.600 |
|
|
|
|
Other Expenses |
40926.600 |
32321.200 |
|
|
|
|
Exceptional Items |
(731.900) |
(1891.900) |
|
|
|
|
TOTAL (B) |
145173.000 |
108554.000 |
91355.000
|
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
6557.800 |
20768.700 |
14874.200 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
9712.300 |
11197.100 |
9930.100 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
(3154.500) |
9571.600 |
4944.100 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
9398.800 |
9106.200 |
9619.600 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
(12553.300) |
465.400 |
(4675.500) |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
(192.300) |
368.500 |
0.900 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
(12361.000) |
96.900 |
(4676.400) |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
(7193.900) |
(7290.800) |
(2614.400) |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
(19554.900) |
(7193.900) |
(7290.800) |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Passenger and Cargo Revenue |
62844.000 |
51337.500 |
41016.100 |
|
|
|
Interest on Bank Account |
3.400 |
2.300 |
4.100 |
|
|
|
Other Income |
161.500 |
448.300 |
292.600 |
|
|
|
Leasing Operations |
4521.200 |
5172.400 |
7176.800 |
|
|
TOTAL EARNINGS |
67530.100 |
56960.500 |
48489.600 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Stores & Spares |
3525.200 |
3618.800 |
1912.300 |
|
|
|
Capital Goods |
1568.500 |
643.800 |
2706.700 |
|
|
TOTAL IMPORTS |
5093.700 |
4262.600 |
4619.000 |
|
|
|
|
|
|
|
|
|
|
Earnings/ (Loss)
Per Share (Rs.) |
(143.18) |
1.12 |
(54.17) |
|
%20LIMITED%20-%20212835%2012-Mar-2013_files/image005.gif){kind=small}
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2012 (Unaudited) |
30.09.2012 (Unaudited) |
31.12.2012 (Unaudited) |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Net Sales |
44705.300 |
40132.800 |
40857.600 |
|
Total Expenditure |
41233.700 |
38194.900 |
36459.700 |
|
PBIDT (Excl OI) |
3471.600 |
1937.900 |
4397.900 |
|
Other Income |
2411.000 |
1814.200 |
1654.600 |
|
Operating Profit |
5882.600 |
3752.100 |
6052.500 |
|
Interest |
2499.300 |
3221.200 |
2483.900 |
|
Exceptional Items |
(646.400) |
779.300 |
(408.900) |
|
PBDT |
2736.900 |
1310.200 |
3159.700 |
|
Depreciation |
2403.600 |
2393.200 |
2241.900 |
|
Profit Before Tax |
333.300 |
(1083.000) |
917.800 |
|
Tax |
86.300 |
(86.300) |
67.800 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
247.000 |
(996.700) |
850.000 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
|
Net Profit |
247.000 |
(996.700) |
850.000 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
(8.15)
|
0.07 |
(4.40) |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(8.47)
|
0.36 |
(4.47) |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(6.48)
|
0.24 |
(2.57) |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.94)
|
0.01 |
(0.18) |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
8.22
|
4.42 |
5.21 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.63
|
0.81 |
1.02 |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info Agents |
Available in
Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
Yes |
|
8] |
No. of employees |
Yes |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact
person |
No |
|
11] |
Turnover of firm for last
three years |
Yes |
|
12] |
Profitability for last
three years |
Yes |
|
13] |
Reasons for variation
<> 20% |
-- |
|
14] |
Estimation for coming
financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister
concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details
(if applicable) |
No |
|
21] |
Market information |
-- |
|
22] |
Litigations that the firm
/ promoter involved in |
-- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking
account |
-- |
|
26] |
Buyer visit details |
-- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if
applicable |
Yes |
|
29] |
Last accounts filed at
ROC |
Yes |
|
30] |
Major Shareholders, if
available |
No |
|
31] |
Date of Birth of
Proprietor/Partner/Director, if available |
Yes |
|
32] |
PAN of Proprietor/Partner/Director,
if available |
No |
|
33] |
Voter ID No of
Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating,
if available |
Yes |
REVIEW OF
OPERATIONS
The year has been a challenging one for the Company not only because of
the events around the world over which the Company has little control but also
because of severe overcapacity in the domestic market in India. The domestic
overcapacity led to fare wars in the domestic business with nearly all airlines
selling seats below cost. This led to severe losses for the Industry as a
whole. For the year ended 31st March 2012, the domestic airline
industry is estimated to have lost over Rs.120000.000 millions.
There were other major events across the world which impacted the
business:
a) Slowdown in other
economies which led to a drop in yields in international markets
b) The weakening of
the Indian Rupee vis-ŕ-vis the United States Dollar
c) Increase in crude
oil prices and resultant price of Aviation Turbine Fuel, which forms close to
50% of their operating cost
d) General stress in
the Indian economy which not only meant that interest rates hardened but also
made it difficult for airlines like ourselves to raise short term/ working
capital debt Towards the second half of the financial year, things started
giving way and a major airline in India had to significantly reduce capacity in
the market. Also, airlines had no choice but to make fare increases and there
were two rounds of fare increases; one in November 2011 of around 10% and
another one in March 2012 of around 12%. This had very little impact on the
passenger traffic because of the capacity reduction in the market, which also
led to a steady increase in their corporate and business class bookings.
The Company, on its part, has taken various initiatives to improve its
operating efficiency and revenue earning potential to bring down the break even
load factor. Initiatives such as enhancing ancillary revenues, discontinuing
loss making routes, Sale/ Sale and lease back of aircraft, re-negotiation of
major contracts including, for aircraft maintenance, ground handling, selling
and distribution costs, etc., have been either implemented or in the process of
being implemented, which will bring down the break even load factor.
The Company raised funds from the sale of development rights of its
lease hold property at Bandra-Kurla Complex, Mumbai and from the sale and lease
back of engines.
As part of its strategic re-branding exercise, the Company has
consolidated its low fare service products under the JetKonnect brand to
simplify the group’s service proposition and enhance brand recall.
Thus, effective 25th March, 2012, the erstwhile JetLite and
Jet Airways Konnect services have started operating under the JetKonnect brand,
enabling guests to avail of a single superior in-flight product in the full
service (Jet Airways) and low-fare (JetKonnect) categories. For the financial
year ended 31st March, 2012, their capacity on JetKonnect services
formed 64% of their overall domestic capacity in terms of number of seats. With
its mixed fleet of Boeings and ATR aircraft and 400 daily flights connecting 56
destinations across India, JetKonnect provides more flexibility and choice to
its guests, making it India’s largest low fare brand.
For the financial year 2012, the Company has had the best On Time
Performance (OTP) and has reported an OTP of 91.1%, which was higher than all
other domestic carriers in India. Their vision and focus has been to
consistently be not only the biggest, but also the best in their service to
customers and in all their operational metrics vis-a-vis the industry. They are
pleased to inform you that the benefits of these measures have translated in
the Company continuing to dominate the Indian domestic skies with a market
share of 26.1% during the year.
The Indian aviation market is one of the only markets in the world which
continues to grow at a healthy pace and it therefore presents an enviable
opportunity for companies like theirs, to take advantage of the strong
franchise that they have created over the last few years.
The domestic traffic in India grew by 13% for fiscal year 2012 and over
the next few years, they expect the domestic aviation market to grow at around
15% per annum and this has also been supported by various studies and analysis
carried out by independent agencies like IATA, CAPA, etc. However, there will
be short term challenges to grow profitably because of high operating costs and
overcapacity in both domestic market as well as international traffic into and
out of India.
During the year, domestic passenger traffic for the Company, reported a
17.9% growth as compared to the same period last year while international
passenger traffic registered an increase of 18.1%.
The Company ended the financial year with a system-wide seat factor of
74.8% on the domestic and 81.6% on the international sectors.
The Company carried Rs.17.305 millions revenue passengers on its
international and domestic services during the year, up from Rs.14.667 millions
in the previous financial year.
The financial year 2012 was a year of consolidation and there were not
many new routes that the Company began operations on. The focus was largely on
building traffic flows between domestic and international as well as
international traffic flows over their key hubs at Mumbai and New Delhi. The
International business of the Company has now posted several consecutive
quarters of consistent growth in terms of seat factor of above 80% and increase
in the capacity in terms of ASKMs reflecting the growing impact of their
network synergies, major strategic international code shares and customer
centric product and service focus
The Company will take deliveries of 4 Airbus A330 – 300 aircraft this
financial, of which 2 will be replacements for lease expiries while the other 2
will be deployed on long haul international routes. There are various
international route rights that the Company has applied for to fly into European
countries and the new aircraft capacity will be deployed on some of these
routes. Additionally, they will also free some A330 aircraft capacity due to
temporary suspension of their loss making routes like Mumbai-Johannesburg in
June 2012. These aircraft will be redeployed on to other routes.
Fleet
As on date, the Company had a fleet of 102 aircraft, comprising 10
Boeing 777-300 ER aircraft, 12 Airbus A330-200 aircraft, 60 Next Generation Boeing
737-700/800/900/900ER aircraft and 20 modern ATR 72-500 Turboprop aircraft.
With an average fleet age of 6.04 years, the airline has one of the youngest
aircraft fleets in the world.
Of the 10 B777-300ER aircraft, 5 aircraft have been sub-leased to Thai
Airways Public Company Limited (“Thai Airways”). The lease in respect of these
aircraft expires between May, 2013 and November, 2013.
Flights to 76 destinations span the length and breadth of India and
beyond, including Abu Dhabi, Bahrain, Bangkok, Brussels, Colombo, Dammam,
Dhaka, Doha, Dubai, Hong Kong, Jeddah, Johannesburg, Kathmandu, Kuala Lumpur,
Kuwait, London (Heathrow), Milan, Muscat, New York (both JFK and Newark),
Riyadh, Sharjah, Singapore and Toronto.
MANAGEMENT
DISCUSSION AND ANALYSIS
INDUSTRY STRUCTURE
AND DEVELOPMENT
he aviation industry in India has gone through another very difficult
year of operation and continued to show substantial losses for Fiscal 2012.
This was mainly due to extremely high costs of operations as well as excess
capacity in the industry. In the second half of the fiscal year, some of this
capacity started getting out of the market because of cancellations by a major
player in the industry.
Crude oil prices continued to be very high especially in the latter half
of the year and this diluted any major impact of capacity reduction. In
addition, the Rate of Exchange of the Indian Rupee to the US Dollar continued
to be negative for the industry players. Since many of the carriers have more
US Dollar costs than US Dollar revenues, this put significant pressure on the
cost line.
The difficult financial environment in Europe, USA and other countries
also resulted in the airlines’ inability to increase yields into and out of
these markets. This put significant pressure on the financials of airlines.
Added to this pressure, was the issue of Banks and other partners taking a
negative stance on aviation companies in India which precluded airlines from
getting any kind of financial support in the short term.
Towards the end of the year, because of some demand – supply imbalance
being reduced, airlines were able to make some fare increases, the impact of
which will be seen in Fiscal 2013.
ANALYSIS OF
OPERATIONAL PERFORMANCE FISCAL 2012 COMPARED TO FISCAL 2011 REVENUES
Total operating revenues of Rs. 148159.100 millions in Fiscal 2012
compared to Rs. 127367.600 millions in Fiscal 2011 shows an increase of 16%.
The higher revenues are on account of increase in the level of operations
resulting in increase in Passenger and Cargo revenues.
PASSENGER REVENUES
In Fiscal 2012 passenger revenues were at Rs. 125820.500 millions as
compared to Rs.105708.100 millions in Fiscal 2011. The growth of 19% is mainly
due to increase in number of passengers carried compared to the previous year.
REVENUES FROM
EXCESS BAGGAGE
Revenues from excess baggage revenue increased by 63% to Rs. 913.900
millions in Fiscal 2012 from Rs.559.600 millions in Fiscal 2011.
REVENUES FROM
CARGO
Revenues from carriage of cargo increased by 13% to Rs.13084.100
millions in Fiscal 2012 from Rs.11599.500 millions in Fiscal 2011. This was
mainly on account of increase in the cargo yield over the last year along with
the rise in cargo tons carried.
OTHER REVENUES
Other revenues decreased to Rs.8340.600 millions in Fiscal 2012 from
Rs.9500.400 millions in Fiscal 2011. The reduction can be mainly attributed to
reduced leasing income from Rs.5172.400 millions in Fiscal 2011 to Rs. 4521.200
millions in Fiscal 2012.
NON-OPERATING
REVENUES
Non-operating Revenues increased to Rs.3571.700 millions in Fiscal 2012,
up by 83% from Rs.1955.100 millions in Fiscal 2011.
The increase was mainly on account of profit on sale of engines and sale
of development rights of BKC Land.
EXPENSES
Their total expenses amounting to Rs.165016.000 millions in Fiscal 2012
increased by 26% from Rs.130749.200 millions in Fiscal 2011.
AIRCRAFT FUEL
Fuel costs increased by 52% to Rs. 66306.700 millions for Fiscal 2012
from Rs.43667.000 millions in Fiscal 2011. This increase was mainly due to:
Increase in Aviation Turbine Fuel (ATF) rates on account of increase in
crude oil prices. The average rate per litre of fuel for domestic operations in
Fiscal 2012 was Rs.60.20 vs Rs. 45.01 for Fiscal 2011. The rates for
International operations were Rs.43.36 in Fiscal 2012 vs Rs.30.29 in Fiscal
2011.
There was also an increase in block hours flown from 350,161 hours in
Fiscal 2011 to 400,060 hours in Fiscal 2012, as a result of increase in the
level of operations.
OTHER OPERATING
EXPENSES
Other Operating Expenses increased by 27% to Rs.40926.600 millions for
Fiscal 2012 from Rs.32321.200 millions in Fiscal 2011 as summarized below:
The increase in maintenance and repair costs in 2012 was essentially due
to:
·
Increase in
block hours from 350,161 hours in Fiscal 2011 to 400,060 hours in Fiscal 2012.
·
The landing and navigation charges were high
because of increase in number of flights operated over previous year;
additionally some of the International routes were upgraded to wide body
aircraft.
·
The increase in general and administrative expenses
in Fiscal 2012 over Fiscal 2011 is attributable to:
➡ Increase in Food and Cabin expenses by 13% from Rs. 5306.900 millions to Rs. 6009.500 millions is primarily due to the change in the mix of full service and JAK operations over the last year along with the level of operations going up.
➡ The increase in expenses relating to crew accommodation, transportation and allowances by 27% from Rs.1785.400 millions in Fiscal 2011 to Rs.2263.900 millions in Fiscal 2012 was due to the expansion of services in the Domestic market along with the addition of frequencies on International routes.
➡ Loss on foreign exchange fluctuation amounting to Rs.1725.700 millions which is included in general and administrative charges.
EMPLOYEE
REMUNERATION AND BENEFITS
Expenses with regard to employee remuneration and benefits increased by
19% to Rs.15994.900 millions in Fiscal 2012 from Rs.13396.900 millions in
Fiscal 2011 due to increase in the personnel employed to support the increase
in the flights operated i.e. number of departures increased by around 19% over
the last year. As on 31st March, 2012, the Company had 12,849 permanent
employees as against 12,811 permanent employees on 31st March, 2011.
SELLING AND
DISTRIBUTION COSTS
Selling and distribution costs increased by 8% to Rs.13616.700 millions
for Fiscal 2012 from Rs.12617.200 millions for Fiscal 2011. Commission costs,
which forms a part of selling and distribution costs, did not go up in the same
proportion as increase in the revenues. This was due to decrease in the
performance linked incentives and commission paid to agents / general selling
agents. Hence, increase in the selling and distribution cost was restricted to
only 8%.
LEASE RENTALS
Aircraft rentals increased by 7% to Rs, 9060.000 millions in Fiscal 2012
from Rs. 8443.600 millions in Fiscal 2011 mainly on account of
·
The induction of 4 Boeing 737-800 aircrafts and 1
Boeing 737-900ER
·
Impact of exchange rate difference of Rupee moving
from 44.595 to 50.875 to a Dollar. Depreciation
STATEMENT OF STANDALONE UNAUDITED FINANCIAL RESULTS FOR THE QUARTER
ENDED 30TH JUNE, 2012
|
Sr.No. |
Particulars |
30.06.2012 (Rs. In millions) |
|
|
|
Quarter Ended |
|
|
|
(Unaudited) |
|
1. |
Income from
Operations |
|
|
|
a. Income from Operations (Net) |
43449.200 |
|
|
b. Other Operating Income (Refer Note 3) |
24,23.500 |
|
|
Total Income from
Operations |
45872.700 |
|
2. |
Expenses : |
|
|
|
a. Aircraft Fuel Expenses |
19674.100 |
|
|
b. Aircraft Lease Rentals |
2755.700 |
|
|
c. Employees Remuneration and Benefits |
4017.100 |
|
|
d. Depreciation and Amortization |
2403.600 |
|
|
e. Selling and Distribution Expenses |
3741.000 |
|
|
f. Other Expenses |
11045.800 |
|
|
Total Expenses |
43637.300 |
|
3. |
Profit / (Loss)
from Operations before Other Income, Finance Cost and Exceptional Items (1-2) |
2235.400 |
|
4. |
Other Income : (Refer Note 4) |
1243.600 |
|
5. |
Profit /(Loss) from
Operations before Finance Cost and Exceptional Items (3+4) |
3479. 000 |
|
6. |
Finance Cost |
2499.300 |
|
7. |
Profit / (Loss)
Profit after Finance Cost but before Exceptional Items (5-6) |
979.700 |
|
8. |
Exceptional Items : (Refer Note 5) a. Contribution receivable from Lessors towards maintenance b. Unrealised Exchange Gain / (Loss) c. Marked to Market - Derivatives |
(689.400) 43. 000 |
|
9. |
Profit / (Loss) from
Ordinary Activities before Tax (7+8) |
333.300 |
|
10. |
Tax Expense : Current Tax Deferred Tax MAT Credit Reversal / (Entitlement) Short / (Excess) Tax Provisions (Net) for Earlier Years |
86.300 86.300 |
|
11. |
Profit / (Loss) from
Ordinary Activities after Tax ( 9-10) |
247.000 |
|
12. |
Extraordinary Item |
.- |
|
13. |
Net Profit / (Loss) (11-12) |
247.000 |
|
14. |
Paid up Equity Share Capital (Face Value of Rupees 10/- each) |
8,633 |
|
15. |
Reserves excluding Revaluation Reserves (as per balance sheet of previous accounting year) |
|
|
16. |
Basic and Diluted EPS before and after Extraordinary Item (in Rupees) * |
2.86 |
|
A |
PARTICULARS OF
SHAREHOLDING |
|
|
17. |
Public Shareholding |
|
|
|
Number of Shares (Face Value of Rupees 10/- each) |
17,265,806 |
|
|
Percentage of holding (%) |
20% |
|
18. |
Promoters and
Promoter Group Shareholding a) Pledged / Encumbered - Number of Shares - Percentage of Total Promoters and Promoter Group Shareholding (%) - Percentage of Total Share Capital of Company (%) b) Non - Encumbered |
- |
|
|
- Number of Shares |
69,068,205 |
|
|
- Percentage of Total Promoters and Promoter Group Shareholding (%) |
100% |
|
|
- Percentage of Total Share Capital of Company (%) |
80% |
|
B |
INVESTOR COMPLAINTS |
|
|
|
Received during the quarter |
3 |
|
|
Disposed off during the quarter |
3 |
|
|
Remaining unresolved at the end of the quarter |
NIL |
UNAUDITED STANDALONE
SEGMENTWISE REVENUE, RESULTS FOR THE QUARTER ENDED 30TH JUNE, 2012
|
1 |
Standalone |
|
|
|
Particulars |
Quarter Ended |
|
|
|
30.06.2012 (Unaudited) |
|
|
Segment Revenue :
(Primarily Passenger, Cargo, Excess |
|
|
|
Baggage and Leasing
of Aircraft) |
|
|
|
Domestic |
19853.900 |
|
|
International |
26018.800 |
|
|
Total |
45872.700 |
|
|
Segmental Result : |
|
|
|
Domestic |
10130.500 |
|
|
International |
10971.100 |
|
|
Total |
21101.600 |
|
Less : |
Finance Cost |
2499.300 |
|
|
Depreciation and Amortization |
2403.600 |
|
|
Other Unallocable Expenditure |
16462.600 |
|
Add : |
Other Unallocable Revenue |
1243.600 |
|
Add : |
Exceptional Items (Net) |
(646.400) |
|
|
Profit / (Loss)
before tax |
333.300 |
|
Less : |
Taxes |
86.300 |
|
|
Profit / (Loss)
after Tax |
247.000 |
Notes:
1. The above results have been reviewed by the Audit Committee and thereafter were approved and taken on record by the Board of Directors at its Meeting held on 3rd August, 2012. The Statutory Auditors have carried out a limited review of the above results pursuant to Clause 41 of the Listing Agreement.
2. The figures for the quarter ended 31st March, 2012 are the balancing figures between the audited figures in respect of the full financial year ended 31st March, 2012 and the published year-to-date figures upto the third quarter ended 31st December, 2011.
3. Other Operating Income include income from leasing of Aircraft. For the Quarter ended 30th June, 2012 income from such activity stood at Rs.1167.400 millions. The corresponding income for the Quarter ended 30th June, 2011 was Rs. 1366.800 millions. The income for the Quarter and year ended 31st March, 2012 was Rs. 1107.1 millions and Rs. 4521.200 millions respectively.
4. Other Income includes :
a) Profit on Sale and Leaseback of Aircraft amounting to T Rs. 523.700 millions during the Quarter ended 30th June, 2012. Profit on Sale and Leaseback of Aircraft Engines amounting to Rs.760.900 millions is included in the results for the year ended 31st March, 2012.
During the F.Y 2011-12, the company finished an agreement with Godrej Buildcon Private Limited, Mumbai (GBPL) for the development of its land situated at Bandra-Kurla Complex, Mumbai taken on long term lease from MMRDA. Consequent to the said agreement, the Company has been reimbursed all cost incurred on the above said land and to the extent such cost were charged to the Statement of Profit and Loss in earlier years the same has been credited to the Statement of Profit and Loss. This credit amounting to Rs. 1028.600 millions is included in the results for the year ended 31st March, 2012.
5 a) During the F.Y. 2009-10, the Company entered into "Power by the Hour" (PBTH) engine maintenance arrangement with a service provider. Subsequent to which the PBTH cost are being charged to the Statement of Profit and Loss and the variable rentals payable to the Lessors, based on maintenance plan, are being recognised as "Receivable From Lessors". Based on a joint validation of the Company's maintenance plan with the service provider, the Company has recognised the expected refunds of variable rentals accrued till 31st March, 2009 as "Contribution receivable from Lessors towards maintenance".
b) Unrealised exchange Gain / (Loss) in refers to the notional Gain / (Loss) arising out of the restatement of the unhedged portion of foreign currency monetary assets and liabilities (other than asset backed borrowings). Due to unusual and steep depreciation in the value of the Rupee over last one year, the net unrealised loss has been considered by the Company to be exceptional in nature. In line with the Notification dated 29th December, 2011 issued by the Ministry of Corporate Affairs, the Company exercised the option given in the paragraph 46A of Accounting Standard - 11 "The Effects of Changes in foreign exchange rates". Accordingly, the Company has, with effect from April 1, 2011, amortized the foreign exchange loss incurred on long term foreign currency monetary items over the balance period of such long term foreign currency monetary items. The amortized portion of foreign exchange loss (net) incurred on long term foreign currency monetary items for the Quarter ended 30th June, 2012 is Rs. 118.500 millions (for the Quarter and year ended 31st March, 2012 it was Rs. 254.100 millions and Rs. 400.600 millions respectively). The unamortised portion carried forward as on 30th June, 2012 is Rs.2887.300 millions (Rs.1409.400 millions for the year ended 31st March, 2012).
6.The Company had acquired 100% of the shareholding of Sahara Airlines Limited (SAL) (now known as Jet Lite (India) Limited) in April, 2007. As per the Share Purchase Agreement (SPA) as amended by the subsequent Consent Award, the mutually agreed sale consideration was to be paid to the Selling Shareholders (SICCL) in four equal interest free instalments by 30th March, 2011. As a result of certain disputes that arose between the parties, both the parties had filed petitions in the Hon'ble Bombay High Court for breach of SPA as amended by the subsequent Consent Award. The Hon'ble Bombay High Court delivered its Judgment on 4th May, 2011 whereby SICCL's demand for restoration of the original price of Rs.20000.000 millions was denied and the Purchase Consideration was sealed at the revised amount of Rs. 14500.000 millions. However, in its judgment, the Hon'ble Bombay High Court has awarded interest at 9% p.a. on the delayed payments made to SICCL largely on account of ongoing legal dispute. In view of this Order, a sum of Rs.1164.300 millions became payable as interest which has been duly discharged by the Company. As a result of this discharge, the undertaking given by the Company in April 2009 for not creating any encumbrance or alienation of its moveable or immoveable assets and properties in any manner other than in the normal course of the business, stands released.
Though the Company had complied with the order of the Hon'ble Bombay High Court, based on legal advice, it filed an appeal with the Division Bench of the Hon'ble Bombay High Court contesting the levy of interest. SICCL also filed an appeal with the Division Bench of the Hon'ble Bombay High Court for restoration of the purchase consideration to Rs. 20000.000 millions and for interest to be awarded at 18% p.a. as against the 9% p.a. awarded by the Hon'ble Bombay High Court.
The Division Bench of the Hon'ble Bombay High Court heard the matter and vide its order dt.17th October, 2011 dismissed both the appeals as being not maintainable in view of jurisdictional issue. The Company has since filed Special Leave Petitions (SLP) before the Hon'ble Supreme Court challenging both the orders of 4th May, 2011 and 17th October, 2011. SICCL had earlier filed a SLP before the Hon'ble Supreme Court for increased compensation and interest.
Both the SLPs, filed by Jet Airways as well as SICCL, came up for hearing before the Supreme Court. The Supreme Court directed the parties to file the Counter and Rejoinder which has since been filed. The Supreme Court also recorded that the statement made by Jet Airways, as recorded in the order dated 6th May, 2011 passed by the Hon'ble Bombay High Court, would continue till further orders.
Pending adjudication of the matter by the Hon'ble Supreme Court, the interest payment of Rs. 1164.300 millions effected by the Company on 5th May 2011 has not been recognised in the Statement of Profit and Loss.
7.The Company has equity and preference investments aggregating to Rs. 16450.000 millions in Jet Lite (India) Limited, a wholly owned subsidiary, and has advanced an interest free loan amounting to Rs. 13322.700 millions as on 30th June, 2012. An external reputed valuer based on revised business plans as approved by the Board of subsidiary company, has recently valued the equity interest in the subsidiary, which supports the carrying value of such investment. The Company continues to provide financial support to the subsidiary's operations to further such business plans and expects it to turnaround. Accordingly, the subsidiary’s financial statements have been prepared on a "Going Concern" basis and no provision is considered necessary at this stage in respect of the Company's investments and loans outstanding from the said subsidiary.
8. In view of the seasonality of the business, the financial results for the Quarter ended 30th June, 2012 are not indicative of the full year's performance.
9. The Airline Industry continues to be overshadowed by high fuel and other operating cost besides weakening Rupee, which significantly impacted the performance and cash flows of the Company and its subsidiary resulting in substantial erosion of the net worth. The Management has been constantly implementing initiatives to improve the operating cash flows through cost control measures, route rationalisation, leasing out Aircraft, exploring avenues of enhancing ancillary revenues etc. The Company is also exploring options of raising finances to meet its various operational and financial obligations including financial support to its Subsidiary - Jet Lite (India) Limited. These measures are expected to result in sustainable cash flows and accordingly these financial statements continue to be presented on a going concern basis, which contemplates realisation of assets and settlement of liabilities in the normal course of business.
10. The figures for the previous corresponding periods have been regrouped / reclassified, wherever necessary, to make them comparable.
CONTINGENT LIABILITIES:
|
Particulars |
As at 31st March |
|
|
|
2012 |
2011 |
|
(a) Guarantees : |
|
|
|
i. Letters of Credit Outstanding |
149,671 |
151,627 |
|
ii. Bank Guarantees Outstanding |
126,640 |
75,829 |
|
iii. Corporate Guarantee given to Banks and Financial Institutions against |
|
|
|
credit facilities and to Lessors against financial obligations extended to Subsidiary Company : |
|
|
|
- Amount of Guarantee |
53,598 |
42,166 |
|
- Outstanding Amounts against the Guarantee |
53,074 |
42,166 |
|
(b)Claims against
the Company not acknowledged as debt (Refer note below) : |
|
|
|
i. Service Tax Demands in Appeals |
176,331 |
137,052 |
|
ii. Fringe Benefit Tax Demands in Appeals |
10,630 |
9,586 |
|
iii. Pending Civil and Consumer Suits |
5,849 |
6,656 |
|
iv. Inland Air Travel Tax Demands under Appeal |
426 |
426 |
|
Amount deposited with the Authorities for the above Demands |
105 |
105 |
|
v. Octroi |
Nil |
2,899 |
|
vi. Customs |
143 |
- |
|
vii. Income Tax Demands in Appeals |
33,711 |
35,805 |
|
viii. Wealth Tax Demands in Appeals |
21 |
21 |
(xi) The Holding Company had acquired 100% of the shareholding of Sahara Airlines Limited (SAL) (now known as Jet Lite (India) Limited) in April, 2007. As per the Share Purchase Agreement (SPA) as amended by the subsequent Consent Award, the mutually agreed sale consideration was to be paid to the Selling Shareholders (SICCL) in four equal interest free instalments by 30th March, 2011. As a result of certain disputes that arose between the parties, both the parties had filed petitions in the Hon'ble Bombay High Court for breach of SPA as amended by the subsequent Consent Award. The Hon'ble Bombay High Court delivered its Judgment on 4th May, 2011 whereby SICCL's demand for restoration of the original price of Rs. 20000.000 millions was denied and the Purchase Consideration was sealed at the revised amount of Rs. 14500.000 millions. However, in its judgment, the Hon'ble Bombay High Court has awarded interest at 9% p.a. on the delayed payments made to SICCL largely on account of ongoing legal dispute. In view of this Order, a sum of Rs. 1164.300 millions became payable as interest which has been duly discharged by the Holding Company. As a result of this discharge, the undertaking given by the Holding Company in April 2009 for not creating any encumbrance or alienation of its moveable or immoveable assets and properties in any manner other than in the normal course of the business, stands released.
Though the Holding Company had complied with the order of the Hon'ble Bombay High Court, based on legal dvice, it filed an appeal with the Division Bench of the Hon'ble Bombay High Court contesting the levy of interest. SICCL also filed an appeal with the Division Bench of the Hon'ble Bombay High Court for restoration of the purchase consideration to Rs.20000.000 millions and for interest to be awarded at 18% p.a. as against the 9% p.a. awarded by the Hon'ble Bombay High Court. The Division Bench of the Hon'ble Bombay High Court heard the matter and vide its order dt.17th October, 2011 dismissed both the appeals as being not maintainable in view of jurisdictional issue. The Holding Company has since filed Special Leave Petitions (SLP) before the Hon'ble Supreme Court challenging both the orders of 4th May, 2011 and 17th October, 2011. SICCL had earlier filed a SLP before the Hon'ble Supreme Court for increased compensation and interest.
Both the SLPs, filed by Jet Airways as well as SICCL, came up for hearing before the Supreme Court. The Supreme Court directed the parties to file the Counter and Rejoinder which has since been filed. The Supreme Court also recorded that the statement made by Jet Airways, as recorded in the order dated 6th May, 2011 assed by the Hon'ble Bombay High Court, would continue till further orders. Pending adjudication of the matter by the Hon'ble Supreme Court, the interest payment of Rs.1164.300 millions effected by the Holding Company on 5th May, 2011 has not been recognized in the Statement of Profit and Loss.
Note:
The Company is a party to various legal proceedings in the normal course of business and does not expect the outcome of these proceedings to have any adverse effect on its financial conditions, results of operations or cash flows. Further, claims by parties in respect of which the Management have been legally advised that the same are frivolous and not tenable, have not been considered as contingent liabilities as the possibility of an outflow of resources embodying economic benefit is highly remote.
UNSECURED LOANS
Rs. In Millions
|
Particular |
31.03.2012 |
31.03.2011 |
|
Long Term Loan |
|
|
|
Long Term Maturities of Finance Lease Obligations (Refer note a below) |
71014.000 |
72839.700 |
|
Short Term Loan |
|
|
|
From Banks Rupee Loans (Refer note b below) |
994.400 |
1207.000 |
|
Foreign Currency Loans (Refer note b below) |
0.000 |
1290.300 |
|
From Others |
|
|
|
Rupee Loans (Refer note b below) |
0.000 |
40,000 |
|
Total |
73388.600 |
79337.000 |
|
a. (i) Finance Lease obligation for six Aircraft are secured by Corporate Guarantee given by the Subsidiary Company. (ii) Repayable in quarterly instalments over period of twelve years from the date of disbursement of respective loan. Interest rate is linked with LIBOR plus margin. b. The rates of interest for the above said loans ranges
from 200 base points to 850 base points over LIBOR plus Margin for
Foreign Currency Loans and 12 % to 15
% for Rupee Loans. |
||
FIXED ASSETS
Owned Tangible Assets:
v
Freehold
Land
v
Plant
and Machinery
v
Furniture
and Fixtures
v
Electrical
Fittings
v
Data
Processing Equipments
v
Office
Equipments
v
Vehicles
v
Ground
Support Equipments
v
Simulator
Leased Assets:
v
v
Aircraft
and Spare Engine (Narrow Body)
v
Aircraft
and Spare Engine (Wide Body)
v
Improvement
on Leased Aircraft
v
Improvement
on Leased Property
Intangible Assets:
(Other than
internally generated)
v
Software
v
Landing
Rights
v
Trademarks
WEBSITES DETAILS:
BOARD OF DIRECTORS
Mr. Naresh
Goyal | Chairman
Mr. Naresh Goyal, the founder Chairman of Jet Airways, India’s premier airline,
has over 39 years of experience in the Civil Aviation industry. With his vast
experience in the field of aviation, Mr. Goyal is the recipient of several
national and international awards. Mr. Goyal currently serves on the
prestigious International Air Transport Association (IATA) Board of Governors
for the year 2009-2010.
Mr. Ali
Ghandour | Director
Mr. Ali Ghandour, a Jordanian national, has been a Director of the Company
since February 1998. Mr. Ghandour is a qualified aeronautical engineer from New
York University, U.S.A. Mr. Ghandour has over 50 years of experience in the
civil aviation industry. He was an advisor to the late King Hussein of Jordan
and was earlier the Founder and Chairman of the Royal Jordanian Airlines. He
has also been associated with the development of a number of airlines in the
Middle east including: ARAB WINGS, Arab Air Cargo, Sierra Leon Airline, and the
Royal Academy of Aeronautics.
Mr. Victoriano P.
Dungca | Director
Mr. Victoriano P. Dungca, an American national, has been a Director of the
Company since January 1999. Mr. Dungca holds an MBA from Cornell University,
U.S.A. and is a Certified Public Accountant from the U.S.A. Mr. Dungca has had
a long and distinguished career with Philippine Airlines and retired as its
Executive Vice President. He is currently a financial advisor based in
California, U.S.A.
Mr. Javed
Akhtar | Director
Mr. Javed Akhtar, an Indian national has been a Director of the Company since
March 1993. Mr. Akhtar holds a Bachelor of Arts degree. Mr. Akhtar is a
well-known poet, lyricist, screenplay and scriptwriter and is a famous media
personality. Mr. Akhtar has won the Filmfare Award Fifteen times, and is a
five-time National Award winner for the best lyricist.
Mr. Iftikar M.
Kadri | Director
Mr. Iftikar M. Kadri, an Indian national, has been a Director of the Company
since February 2000. Mr. Kadri holds a Bachelors degree in Engineering from
Pune University. He is a member of the Council of Architecture, New Delhi and a
Fellow of the Indian Institute of Architects and a fellow of the Indian
Institute of Interior Design. Mr. Kadri set up his practice as an architect in
1960 and is actively involved with the problems relating to rebuilding of
dilapidated buildings in Mumbai and exploring technological solutions for mass
housing schemes. He was also a member of the Steering Committee appointed by
the Government of Maharashtra to suggest strategies for solving the housing
problems of Mumbai. Mr. Kadri was awarded a citation in 1993 as an Outstanding
Architectural Engineer by the Institution of Engineers in India. He was the
Sheriff of Mumbai in 1994. He is also the General Secretary of the prestigious
Nehru Centre in Mumbai.
Mr. Aman
Mehta | Director
Mr. Aman Mehta, an Indian national, has been a Director of the Company since
September 2004. Mr. Mehta holds a Bachelors degree in Economics from Delhi
University. He joined the HSBC group in 1968. He subsequently held several
senior positions with the HongKong Shanghai Banking Corporation and was
appointed Chief Executive Officer of HSBC Asia Pacific in January 1999, a
position he held until his retirement in December 2003. Mr. Mehta is also a
member of the governing board of the Indian School of Business, Hyderabad. Mr.
Mehta serves as an independent director on the boards of several companies in
India as well as in the UK, Hong Kong and Singapore.
Mr. Gaurang
Shetty | Director
Mr. Gaurang Shetty, an Indian national, is a Bachelors in Science with over 32
years experience in the aviation industry. He joined the Company in 1996 as
General Manager - Marketing and was promoted to Vice President - Marketing in
2004. Currently, at Jet Airways he is Sr. Vice President - Commercial and is
responsible for all commercial activities related to In-flight Services and Customer
Services including Cargo for both domestic and international operations. Prior
to joining the Company, he was with British Airways as its Marketing Manager -
South Asia, where he was responsible for passenger marketing, customer service
and cargo. He was appointed as a Director of the Company on May 24, 2012. On
the said date he was also appointed as "Manager" under the provisions
of the Companies Act, 1956.
PRESS RELEASE:
JET AIR ERASES LAST
WEEK'S GAINS, DOWN 6%
Mar 04, 2013, 03.28
PM IST
Shares of Jet Airways pared some of its last week's gains and fell over 6 percent to Rs 503.65, despite media reports stating that it has approached the civil aviation ministry for acquiring around six slots that currently belong to defunct Kingfisher Airlines.
Last Friday, even as the airline's deal with Etihad came to a standstill, its shares surged over 9 percent after it sold three of its slots at Heathrow Airport for USD 70 million to the Gulf-based carrier (Etihad), further strengthening its commercial relations with the carrier.
Meanwhile, Jet Air is in talks with Eithad for a possible stake sale deal since September last year, but has not yet announced it officially due to negotiations getting stuck on certain issues.
According to CNBC-TV18 sources, Jet Air is learnt to have revised certain clauses pertaining to the Etihad deal. The airline has agreed to give four seats to Etihad on its Board.
Jet Air may also be open to price negotiations as well. The Jet-Etihad deal valuation is likely to be revised.
Earlier, the deal was stuck when Etihad said that instead of two it would want four members of Jet's board. It had also said that in future
The deal was likely to be announced last week, but Hamed bin Zayed al-Nahayan, chairman of Etihad Airways, told media that there were certain issues to be dealt with, before signing agreement with Jet Air.
Since September last year, reports of likely Jet-Etihad started doing rounds and it was only in December that Jet confirmed about it, saying that it is still in negotiation phase. "As and when the deal will happen, we will make an announcement," it had said.
Etihad is keen to pick up 24 percent stakes in Jet Air at around USD 330 million. Both parties still need to discuss issues related to Board composition and revenue sharing model.
JET SHARES SURGE ON
RENEWED HOPES OF STAKE SALE TO ETIHAD
Shares of Jet Airways
rallied 10% to close at Rs 554.10 on renewed hopes that the stake sale to
Gulf-based Etihad Airways will be inked shortly.
Mar 08, 2013, 04.30
PM IST
Shares of Jet Airways rallied 10 percent to close at Rs 554.10 on renewed hopes that the stake sale to Gulf-based Etihad Airways will be inked shortly. The stock has been under pressure for the last couple of weeks after Etihad chairman’s statement that the deal may take longer to materialize.
According to the latest information, Etihad may buy 10-12 percent in Jet from
the promoters for a price between Rs 700-750 per share, reports CNBC-TV18,
quoting unnamed sources. It will buy the additional stake through a
preferential allotment of shares, sources said.
Under the current rules, foreign airlines can buy up to 49 percent in an Indian
carrier.
The share purchase agreement will not have any forward contract clause, sources said.
Industry watchers feel the impending Jet-Etihad deal and AirAsia's entry into India could trigger another round of fare wars, putting further pressure on the already weak bottomlines of Indian carriers.
SpiceJet flagged off the fare war in January, and Jet and other carriers followed suit last month.
SpiceJet CEO Neil Mills of the view that AirAsia is unlikely to be aggressive in its fare strategy.
"AirAsia is a very credible competitor but they have always been very rational and logical. So I don’t believe that they will undercut and not make any money. If you see their growth in some of the other markets they have tempered the growth when they haven't been able to make money," he told CNBC-TV18 in an interview on Thursday.
JET AIRWAYS ANNOUNCES
NATIONWIDE TRAVEL BONANZA FOR GUESTS ON THE DOMESTIC SECTOR WITH LOW FARES
February 19, 2013
20 lakh seats on over 450 daily flights across 57 destinations to go on sale, for a period of six days, effective today, i.e February 19th to 24th, 2013
Jet Airways, today announced a bonanza for all its guests travelling on
domestic sectors within India, with a nationwide sale of low fares for a period
of 6 days.
More than 20 lakh Economy seats will go on sale for over 450 domestic flights across 57 destinations on the Jet Airways and Jet Konnect domestic sectors. Guests can avail of the offer by booking flights from today i.e. Februrary 19th until mid night Februrary 24th 2013.
Guests can avail of this nationwide low fares offer by booking online at
www.jetairways.com and www.jetkonnect.com, or through their local travel
agents. This special economy one way fare offer will be available for travel on
domestic sectors until the end of the year i.e. December 31st 2013.
The airline has introduced four different slabs for these one way fares, based
on the travel distance and the fares are inclusive of all taxes. Thus fares
upto 750 kms have been priced at Rs 2,250, while fares for destinations from
750-1,000 kms are priced at Rs 2850, similarly destinations for which the
travel distance is a 1,000-1400 kms are priced at Rs 3,300 and above 1,400 kms
tickets are priced at Rs 3800. These fares are inclusive of all taxes.
Thus, for instance the one way fares from Mumbai to Ahmedabad, Mangalore,
Hyderabad, Nagpur or Bhopal would be Rs, 0.002 Million, and to Bengaluru,
Raipur, Coimbatore or Jaipur it would be Rs 0.003 Million, to Chandigarh,
Delhi, Bhubaneswar or Visakhapatnam it is 0.003 Million and to Kolkata Rs 0.004
Million.Similarily from Delhi to Jammu, Srinagar, Varanasi the fare is priced
at Rs 0.003 Million, to Ahmedabad, Patna or Raipur Rs.0.003 Million, to
Bengaluru, Kolkata, Hyderabad, Ranchi or Pune its Rs.0.003 Million, to Chennai,
Bengaluru or Guwahati its Rs 0.004 Million
Sudheer Raghavan, Chief Commercial Officer, Jet Airways, said: “This Nationwide
low fare sales offer is a goodwill gesture to our loyal guests who will now be
able to plan and schedule their travel much in advance, especially during the
holiday seasons, while benefitting from these special fares. We have no doubt
that these range of special fares, will offer tremendous value throughout the
year, especially since they will be valid for travel all the way up to December
31st 2013. This limited inventory under the offer is subject to availability on
all domestic flights of Jet Airways and JetKonnect.”
About Jet Airways:
Jet Airways currently operates a fleet of 99 aircraft, which include 10 Boeing 777-300 ER aircraft, 11 Airbus A330-200 aircraft, 2 Airbus A330-300 aircraft 59 next generation Boeing 737-700/800/900 aircraft, 16 ATR 72-500 and 1 ATR 72-600 turboprop aircraft. With an average fleet age of 5.66 years, the airline has one of the youngest fleet of aircraft in the world. Flights to 73 destinations span the length and breadth of India and beyond, including Abu Dhabi, Bahrain, Bangkok, Brussels, Colombo, Dammam, Dhaka, Doha, Dubai, Hong Kong, Jeddah, Kathmandu, Kuwait, London (Heathrow), Milan, Muscat, New York (Newark), Riyadh, Sharjah, Singapore and Toronto.
About JetKonnect:
The new JetKonnect service is a dedicated product designed to meet the needs of the low fare segment. JetKonnect will also offer guests a Premiere service on nearly all domestic routes. With its mixed fleet of Boeings and ATR aircraft with over 500 daily flights connecting 52 destinations across India, JetKonnect provides more flexibility and choice to its guests. JetKonnect’s convenient schedules, reliable service and low fares promise to bring greater value and a seamless flying experience to our customers.
JET AIRWAYS WINS
PRESTIGIOUS 6TH LOYALTY AWARD 2013
ADJUDGED WINNER
IN ‘BEST USE OF CUSTOMER AND DATA ANALYTICS’ CATEGORY
February 13, 2013
Jet Airways, India’s premier international airline, was adjudged the winner of the 6th Loyalty Award 2013 in the “Best use of Customer and Data Analytics” category at a gala award ceremony at Intercontinental, The Lalit, Mumbai. The award was received by Mr. Kaushal Satam, Head - JetPrivilege, Jet Airways in the presence of an august gathering of industry stalwarts. The 6th Loyalty Summit Awards held on 6th February 2013, were presented by AIMIA.
The 6th Loyalty Awards are the outcome of a combination of extensive Consumer Research undertaken in five Indian cities aided by nominations received from organisations. These Awards seek to recognize the efforts undertaken by an organisation in the area of customer loyalty to improve customer relationships and building long term profitability. An independent research company is accredited with the Research for the Awards nominees and the winners.
Mr. Sudheer Raghavan, Chief Commercial Officer, Jet Airways said, “We are proud and honoured to receive this prestigious award from the AIMIA in recognition of our services. This award is a reflection of the emphasis laid by Jet Airways in ensuring that customer needs are kept uppermost in the mind to offer guests as comfortable a travel experience as possible. Jet Airways is committed to delivering truly world class service through constant customer centric innovations and has worked to continuously enhance the excellent services on ground and in flight. This relentless focus on our guests has helped generate tremendous goodwill and loyalty for the Jet Airways brand, in both Indian and foreign skies. The award is testimony to our commitment to enhance the Jet Airways experience for our guests. We will persist in our endeavor to exceed guest expectations and create benchmarks in service standards for others to follow.”
JET AIRWAYS PARTNERS
WITH CARZONRENT TO OFFER CONVENIENT CAR RENTAL SERVICES ON JETAIRWAYS.COM
February 14, 2013
Jet Airways, India's premier International airline, has
entered into a strategic partnership with Carzonrent, one of India’s leading
personal ground transportation service to provide its guests with a seamless
on-ground travel experience.
In addition to booking flight tickets online, guests can now conveniently plan
and book their intra and inter-city on-ground transportation across India on
jetairways.com. This facility is available for guests traveling to and within
India.
The car rental service will provide guests with the option of booking cars
across 4 categories from intermediate to superior. Guests may choose to pay for
the service online or to the chauffeur directly.
According to Mr. Sudheer Raghavan, Chief Commercial Officer, Jet Airways, “Jet
Airways' partnership with Carzonrent provides considerable synergies for both
parties in the corporate and leisure markets and should contribute
significantly in reinforcing our existing network in the domestic market, while
allowing guests to get to their destination hassle-free. This is one more
initiative to help the discerning traveler with an easy mode of transport on
arrival, especially during peak hours to reach the comforts of home or their
place of work in a more relaxed, efficient manner."
Commenting on the occasion Mr. Rajiv Vij, MD and CEO of Carzonrent India
Limited said, “We are glad to collaborate with Jet Airways. This collaboration
is an important part of our strategy to capitalize on the rapid growth of
traveling industry and to solidify our position as a quality service provider”.
JET AIRWAYS’ JETESCAPES INTRODUCES
ATTRACTIVE HOLIDAYS ON THE OCCASION OF VALENTINE’S DAY
To mark valentine’s day with a visit to 'save the children india'
February 12, 2013
Jet Airways, India’s premier international airline has introduced a slew of attractive JetEscapes holidays on the occasion of Valentine’s Day.
Guests may avail exciting JetEscapes Holidays to Goa, Jaipur, Udaipur, Kochi
and Munnar, Delhi and Agra from metros starting from Rs.0.012 Million, which
includes return air tickets in economy, airport transfers, three star
accommodation, sightseeing and insurance. *
Guests will also get a chance to earn 5 JPMiles on every Rs.100 spent while
they avail of these packages.
Guests to Goa, one of the most popular tourist destinations, can enjoy exciting
packages spread over three nights and four days starting at Rs 0.017 Million.
The two nights three days package to Jaipur and Udaipur will start at Rs 0.012
Million and Rs 0.013 Million respectively. Similarly three nights, four day
JetEscapes holidays for Spice Hills and Delhi and Agra will start at Rs 0.018
Million and Rs 0.024 Million respectively.
The details of the
packages are as follows:
Rs. In Millions
|
From |
Goa (3N / 4D) |
Jaipur (2N / 3D |
Udaipur (2N / 3D) |
Spice Hills (Kochi and Munnar) (3N / 4D) |
Delhi and Agra (3N / 4D) |
|
Mumbai |
0.017 |
0.013 |
0.013 |
0.022 |
0.024 |
|
Delhi |
0.026 |
0.012 |
0.014 |
0.023 |
NA |
|
Chennai |
0.019 |
0.020 |
0.022 |
0.018 |
0.025 |
|
Bengaluru |
0.018 |
0.019 |
0.020 |
0.018 |
0.027 |
|
Hyderabad |
0.022 |
0.017 |
0.018 |
0.019 |
0.025 |
|
Kolkata |
0.023 |
0.019 |
0.021 |
0.026 |
0.024 |
As a socially responsible corporate body, Jet Airways will also mark Valentine's Day, February 14th, 2013, with a visit by the airline's cabin crew to the students of Save the Children India. The crew will spend a fun-filled day interacting with the children, playing various games, organizing dances as well as cutting of a cake baked specially for the occasion, courtesy Oberoi Flight Services. Save the Children India is the India chapter of the international organisation, currently working across twelve Indian states to ensure a happy and healthy childhood for every child.
According to Mr. Sudheer Raghavan, Chief Commercial Officer, Jet Airways, “Jet
Airways has always focused on providing exceptional value to its guests by way
of special programmes and partnerships. On the occasion of Valentine's Day, Jet
Airways is happy to introduce a slew of exciting JetEscape packages with
assured benefits, tailored to suit the special occasion, and make the travel
experience for our guests as convenient and enjoyable as possible. It is also
immensely satisfying for us, as a socially responsible organisation, to do our
bit in making the day as special as possible for our young guests at Save the
Children India, as we have been doing over the past few years as well.”
JET AIRWAYS GROUP OPERATING PROFITS
(EBITDAR) UP BY 244% DESPITE HIGHER FUEL PRICES AND RUPEE DEPRECIATION;
Higher yields, cost and network initiatives help Jet Airways Group post PAT of
Rs. 931.000 millions for Q3FY13 vs. loss of Rs.1228.000 millions in Q3FY
12.
Editor’s Synopsis (Jet Airways and Jetlite combined):
Jet Group reported Profit after tax of Rs. 931 million or US $ 16.9 million for Q3 FY13 versus Loss after tax of Rs. 1228.000 millions or US $ 23.1 million for Q3 FY12
Q3 FY13 Total Revenue (combined) of Rs. 47699.000 millions or US $ 867.3 million, up by 5.5%,
EBITDAR margin for Q3 FY13 of 20.1% versus 6.2% for Q3 FY12
Highlights for
quarter ended December 31, 2012 versus December 31, 2011 – JET AIRWAYS
Operational
· System-wide ASKMs of Rs.9069.000 millions
· System-wide RPKMs of Rs.6904.000 millions
· System wide seat factor of 76.1%
· Rs.40.500 millions revenue passengers carried
Financial
· Revenue of Rs. 42512.000 millions or US $ 773.0 million, up 6.6%
· EBITDAR of Rs.8658.000 millions or US $ 157.4 million in Q3 FY13 , up 281%
· EBITDAR Margin at 20.6% in Q3 FY13 versus 5.8% in Q3 FY12
· Profit before tax Rs. 918.000 millions or US $ 16.7 million for Q3 FY13 versus Loss before tax Rs.1012.000 Millions or US $ 19.1 million in Q3 FY12
· Profit after tax Rs.850.000 millions or US $ 15.5 million for Q3 FY13 versus Loss after tax Rs.1012.000 Millions or US $ 19.1 million in Q3 FY 12
· Average Gross Revenue per Passenger (Yield) up 18.6%
Exchange rate used 1 US $ = Rs.0.055 Million for current quarter and 1 US $ = Rs.0.053 Million for previous year same quarter
Highlights for
quarter ended December 31, 2012 versus. December 31, 2011 – JETLITE
· Achieved seat factor of 75.6% in Q3 FY13 versus 78.6% in Q3 FY12
· Revenue of Rs.5187.000 millions or US $ 94.3 million
· EBITDAR of Rs.825.000 millions or US $ 15.0 million in Q3 FY13, up 71%
· EBITDAR Margin at 16.0% in Q3 FY13 versus 9.1% in Q3 FY12
· Profit after tax Rs.81.000 millions or US $ 1.5 million versus Loss after tax Rs.216.000 millions or US $ 4.1 million
· Average Gross Revenue per Passenger (yield) up by 17.1%
Management Discussion
and Analysis (for the quarter)
Improvement in yields, decrease in Cost per ASKM ex- fuel has helped to improve operating margins for the quarter. This is despite slowdown in traffic growth, higher fuel prices and impact of a weak rupee as against US dollar. The unrealised exchange loss for the quarter was approximately Rs.480.000 millions for Jet Airways.
The Company has over the last few months pulled out of loss making routes, redeployed aircraft to other profitable routes. Key routes discontinued over the last few months include BOM – JNB, BRU – JFK, MAA – BRU, which helped in improving overall international performance. This also resulted in instances of aircraft on ground in the short term, the impact of which for the quarter was approximately Rs.550.000 millions. These aircraft will be redeployed in the months to come
Mr. Nikos Kardassis, Chief Executive Officer, Jet Airways India Limited said,
“All of our efforts on revenues, costs and network side have resulted in turning around the airline operations. This is despite higher fuel prices and rupee depreciation impact that we have had in the last few months. The combined impact of higher yields and lower costs (ex fuel) have resulted in significantly lowering the breakeven seat factor levels in the business.
We continue in our endeavor on cost cutting measures, exploring various avenues
of ancillary revenues and process improvements across all segments of the
business, which will help us improve the business further.
At Jet Airways we remain committed to consistently improving our legendary
warmth, service, reliability and courtesy delivered by an attentive staff to
ensure that we achieve customer delight”
Highlights of Jet
Airways Domestic operations
Domestic operations of Rs.18659.000 millions or US$ 339.3 million accounted for
44% of total revenues.
Domestic traffic for Jet airways went down by 13.0% for the quarter versus same
period last year.
Seat factor was 72.7% in Q3 FY13 versus 75.2% in Q3 FY12.
The average Gross
Revenue per Passenger went up by 19.6% YoY.
The EBITDAR margins are at 18.3% in Q3FY13 versus 2.8% in Q3 FY12
Highlights on
International operations
International operations of Rs. 23853.000 millions or US$ 433.7 million
accounted for 56% of total revenues.
International traffic for Jet airways went down by 5.1% for the quarter versus
same period last year.
Seat factor was 78.0% in Q3 FY13 versus 79.2% in Q3 FY12.
The average Gross Revenue per Passenger went up by 13.5% YoY.
The EBITDAR margins are at 22.4% in Q3FY13 versus 8.1% in Q3 FY12.
Outlook
The capacity induction in the market has slowed down over the last few months,
thereby helping the airlines to maintain higher yields.
This along with the weak economic scenario has affected the traffic growth in
the industry YoY. However, higher yields will help the industry to improve
breakevens in short to medium term.
ATF Prices and rupee depreciation vis-a-vis US dollar continues to be a cause
of concern in the short term.
Q4 passenger bookings show encouraging trends, however it will reflect some
seasonality.
Our International operations continue to achieve seat factor of around
80%
Sale and Lease back transactions and debt reduction program continues to be on
track.
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 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 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.54.29 |
|
|
1 |
Rs.81.09 |
|
Euro |
1 |
Rs.70.61 |
INFORMATION DETAILS
|
Report Prepared
by : |
NTH |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
-- |
|
--LIQUIDITY |
1~10 |
4 |
|
--LEVERAGE |
1~10 |
4 |
|
--RESERVES |
1~10 |
4 |
|
--CREDIT LINES |
1~10 |
5 |
|
--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 |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
39 |
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.