Jet's Q2 net falls on rising crude prices

Stocks

oi-Monika

By Monika Nihalani

Published: Saturday, November 12, 2011, 14:21 [IST]

Jet Airways, India's largest airline company posted a loss of Rs 713 crore for the second quarter ended September 30 against a profit of Rs 12.40 crore in previous year same quarter.

The rising crude prices and falling rupee against dollar is hurting the profitability of Indian corporates. Many Indian companies have posted huge forex losses due to sudden fall in rupee against a US dollar.

The airline said that more of its earnings went purchasing turbine fuel and higher interest margins to foreign lenders after the value of rupee fell continuously against the dollar during the quarter.

The airlines pay 40% of their expenditure to buy turbine fuel and fuel prices went up by 41% on yearly basis. During the quarter the Jet Airways paid Rs 1,491.18 crore to buy fuel which is double of what it paid in previous year's quarter.

Apart from fuel expenditure, the company also incurred forex losses of Rs 258 crore.

It's Q2 total revenues stood at Rs 3,293 crore, up by 26.3% against Rs 3,105 crore recorded a year ago.

It's number of passengers grew by 15.5% as compared to last year.

The EBITDA margin during the quarter stood at 3.6%.

"Abnormally high fuel costs, a low fare scenario induced by demand supply imbalance, together with a depreciating rupee versus the dollar and fare cuts have all collectively impacted the second quarter performance,” CEO Nikos Kardassis said in a statement to the BSE.

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