Jet Airways (India) Ltd posts standalone net loss of Rs1,297.46cr in Q2FY19 vs. net profit of Rs49.63cr in Q2FY18: Misses Estimates

The company’s standalone revenue in the quarter stood at Rs6,161.15cr, up 9.5% yoy and 2.51% qoq.

Nov 13, 2018 03:11 IST India Infoline Research Team

Jet Airways (India) Ltd Q2FY19

Standalone Results Q2FY19: (in Rs cr)

Q2FY19 YoY (%)
Revenue 6,161.15 9.5
EBITDA -1,030.60 -
EBITDA Margin (%) - -
Net Loss (adjusted) 1,297.46 -
***EBITDA margin change is bps
Jet Airways reported a disappointing set of numbers in Q2FY19 for the third consecutive quarter as its key performance parameters fell much short of the consensus estimates. The airline operator's standalone revenue increased 9.5% yoy to Rs6,161.1cr in Q2FY19 vs. Rs5,626.6cr in Q2FY18, missing the consensus estimates of Rs6,303.3cr. The company reported an EBITDA loss of Rs1,030.6 in Q2FY19 as compared to an EBITDA profit of Rs261.5cr in Q2FY18. The street was expecting an EBITDA loss of Rs811.6cr for the quarter under review as well. Net loss for the quarter stood at Rs1,297.5cr as compared to a net profit of Rs49.6cr in the same quarter last year. The street was hoping the company to post a net loss of Rs1,118.2cr for Q2FY19.
  • The company at EBITDAR (operating profit before lease rentals) level reported loss of Rs346.3cr in Q2FY19 as compared to EBITDAR profit of Rs836.7cr in Q2FY18. Operating performance was negatively impacted owing to weaker rupee coupled with jump in fuel cost (up 58.6% yoy to Rs2419.8cr) and other expenses (up 53.2% yoy to Rs2069.3cr).
  • Bottom-line was in deep red, suffered due to weak operating performance coupled with sharp decline in other income (down 42.6% yoy to Rs75.5cr).
  • Interest expenses for the September quarter increased by 22.2% yoy to Rs231.4 as compared to Rs189.3cr for the same quarter last year.
  • Aircraft maintenance expenses increased by 17.9% yoy to Rs577.6cr in Q2FY19 vs. Rs489.8cr in Q2FY18.
  • Domestic business contributed 39.2% to the top-line, while contribution from international was 60.8% for the quarter gone by. Its domestic and international revenue share was 43.4% and 56.6% respectively in Q2FY18.
  • The management reiterated that it is working to rationalise some of its operating expenses through strategic decisions. The company saved Rs500cr between March - August, 2018, and is on the track to reach the target of Rs2,000cr savings over the next two years.
  • Jet Airways is making efforts to raise capital through stake sale. The company is in advance talks with Tata Group to materialize a deal.




Technical View:

Jet Airways (India) Ltd ended at Rs242.05, down 15.35 points, or 5.96%, from its previous close of Rs257.40 on the BSE. The scrip opened at Rs256.20 and touched a high and low of Rs256.20 and Rs238, respectively. A total of 1,11,17,646 (NSE+BSE) shares were traded on the counter. The stock traded below its 200-DMA.

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