Jet Airways faces turbulence

Jet Airways is the top loser on the BSE, losing over 4.5% at Rs.665. Its 52-week high and low stands at Rs.727 and Rs.332.40 respectively.

The company posted a very poor performance for Q2FY18. On a meagre 3% (YoY) increase in sales at Rs.5627 crore and net profit slumped 91% at Rs.46 crore v/s Rs.517 crore last Q2.

In previous Q2, the company had earned Rs.190 crore through sale and leaseback of planes. That boosted the bottomline, which is absent this Q2. But despite the higher base effect, the performance is poor.

Its EBITDA fell 30.5% to Rs.836 crore while margins fell by a huge 720 bps to 14.9%.

The company has blamed it all on the fuel cost – it rose 17% to Rs.1526 crore while forex fluctuations led to loss of Rs.73 crore. There was also an impairment loss of Rs.56 crore in the form of loans to Jet Lite, spiking up its expenses by 26%.

Jet’s performance is in direct contrast with its competitors who managed to put up a very good show – Spicejet showed a 80% increase in net profit  at Rs.105 crore while Indigo’s net profit jumped up over four times to Rs.551 crore.