JET AIRWAYS

JET AIRWAYS

INTRODUCTION:JET AIRWAYS is the largest Indian airline based out of Mumbai, Maharashtra.It operates 400 flights daily to 76 destinations worldwide.Its main hub is Mumbai, with secondary hubs at Delhi, Kolkata, Chennai, Cochin, Ahmadabad and Bangalore.Jet Airways' original livery wasNavy Blue,Light GreyandChrome Yellow.

It has an international hub atBrussels Airport,BelgiumEmployees:6,500 The airline is also known to be the leader in the domestic flights section.

Origin:Company founder Naresh Goyal began his travel career in 1967 at the age of 18 as a general sales agent (GSA) for Lebanese International Airlines. In May 1974, he formed his own company, Jetair (Private) Limited, to market other foreign airlines in India. Jetair eventually grew to a network of 60 branch offices.

Goyal set up Jet Airways (India) Private Limited in 1991. Initial investment was $20 million. Company founder Naresh Goyal (then based in London) owned 60 percent of Jet Airways, with Gulf Air and Kuwait Airways dividing the remaining 40 percent.

Jet Airways began domestic flight operations with four new-generation Boeing 737s on May 5, 1993. The first flights were from Mumbai (Bombay) to Delhi and Madras and ten other destinations. Jet Airways aimed to carry seven million passengers by the end of 1993, and to take in first year revenue in excess of $75 million (INR 2.4 billion).

Early years:

Jet Airways was incorporated as anair taxioperator on 1 April 1992.It started commercial operations on 5 May 1993 It began international operations fromChennaito Colomboin March 2004The company is listed on theBombay Stock Exchange, but 80% of its stock is controlled by Naresh Goyal

In January 2006 Jet Airways announced that it would buyAir SaharaforUS$500 million in an all-cash deal, making it the biggest takeover in Indian aviation history. It would have resulted in the country's largest airlinebut the deal fell through in June 2006.On 12 April 2007 Jet Airways agreed to buy out Air Sahara for INR14.5 billion (US$340 million).

Air Sahara was renamed JetLite, and was marketed between a low-cost carrier and a full service airline. In August 2008 Jet Airways announced its plans to completely integrate JetLite into Jet Airways.Jet Airways claimed to be the only profitable privately owned airline in India

Head office:Jet Airway's head office is located in the Siroya Centre inAndheri,Mumbai.It has its branches spread all over both nationally and globally.

SM Centre, the former head officeJet Airways introduced its new identity in conjunction with a global brand re-launch which included new aircraft and seating with three different classes. Which are:First classPremiere classEconomy class

First Classon board the Boeing 777-300ER

Premireon board the Boeing 777-300ER

JetScreen IFE in Economy class on-board aBoeing 737-800COMPETITORS:KINGFISHERSPICE JETINDIAN AIRLINESINDIGOBLUE DARTJACKSON

Awards and achievements

Best First-Class Service in the Worldaward at Business Travellers 20th annual Best in Business Travel awardsBest Business Class & Best Economy Classat the Business Traveller AwardsBest Program of the Yearby Freddie Awards 2007 & 2006Best Elite Levelfor the second year in a row, at the 21st Annual presentation ceremony of the Freddie Awards 2008

Best Overall in Entertainmentat the Avion Awards 2010India's Popular Domestic Airlineat the SATTE 2006 AwardsIndias Airlineat the World Travel Awards, 2006Best Technical Despatch Reliabilityby Beaver 2002Best Cargo Airline of North Asiaby Cargo Airline of the Year Awards

Balance sheet - Jet Airways (India) Ltd.ParticularsMar'11Mar'10Mar'09Mar'08Mar'07Liabilities12 Months12 Months12 Months12 Months12 MonthsShare Capital86.3386.3386.3386.3386.33Reserves & Surplus750.37740.681,208.321,765.422,018.48Net Worth2,604.342,641.983,156.954,551.652,237.25Secured Loans4,510.453,973.684,775.921,612.75742.46Unsecured Loans8,969.949,923.3011,547.6110,402.295,313.84TOTAL LIABILITIES16,084.7316,538.9619,480.4816,566.698,293.55AssetsGross Block17,940.4617,932.7518,763.7416,591.095,713.83(-) Acc. Depreciation4,324.653,502.832,501.802,506.922,416.34Net Block11,848.1712,614.9514,399.6411,384.273,165.05Capital Work in Progress.348.91299.60583.171,223.283,994.52Investments.1,725.091,745.001,745.001,475.3568.93Inventories711.18584.79595.67545.03438.99Sundry Debtors965.77810.77732.251,313.73603.90Cash And Bank587.71772.831,394.50855.141,096.64Loans And Advances3,688.641,613.811,628.281,431.771,262.79Total Current Assets5,953.303,782.204,350.704,145.673,402.32Current Liabilities5,371.493,573.553,281.504,172.542,221.55Provisions186.89144.21178.83189.24248.16Total Current Liabilities5,558.383,717.763,460.334,361.782,469.71NET CURRENT ASSETS394.9264.44890.37-216.11932.61Misc. Expenses0.000.000.000.000.00TOTAL ASSETS (A+B+C+D+E)16,084.7316,538.9619,480.4816,566.698,293.55Profit & Loss - Jet Airways (India) Ltd.Mar'12Mar'11Mar'10Mar'09Mar'0812 Months12 Months12 Months12 Months12 MonthsINCOME:Sales Turnover15,224.6812,782.5210,438.5711,571.158,811.10Excise Duty0.000.000.000.000.00NET SALES15,224.6812,782.5210,438.5711,571.158,811.10Other Income0.000.000.000.000.00TOTAL INCOME15,581.6912,955.9210,590.6111,683.428,926.33EXPENDITURE:Manufacturing Expenses9,387.396,742.555,265.697,446.485,129.92Material Consumed0.000.000.000.000.00Personal Expenses1,599.491,342.191,226.551,410.501,205.18Selling Expenses1,361.671,261.72984.911,098.17982.86Administrative Expenses1,024.28933.15853.941,017.54739.24Expenses Capitalised0.000.000.000.000.00Provisions Made0.000.000.000.000.00TOTAL EXPENDITURE13,372.8310,279.618,331.0910,972.698,057.20Operating Profit1,851.852,502.912,107.48598.46753.90EBITDA2,208.862,676.312,259.52710.73869.13Depreciation939.88910.62961.96899.81777.80Other Write-offs0.000.000.000.000.00EBIT1,268.981,765.691,297.56-189.0891.33Interest2,011.241,872.721,824.741,450.861,056.03EBT-742.26-107.03-527.18-1,639.94-964.70Taxes437.25230.4978.9722.21-160.73Profit and Loss for the Year-1,179.51-337.52-606.15-1,662.15-803.97Non Recurring Items-104.3077.1797.78331.48522.01Other Non Cash Adjustments47.71270.0440.73928.3328.90Other Adjustments0.000.000.000.000.00REPORTED PAT-1,236.109.69-467.64-402.34-253.0KEY ITEMSPreference Dividend0.000.000.000.000.00Equity Dividend0.000.000.000.000.00Equity Dividend (%)0.000.000.000.000.00Shares in Issue (Lakhs)863.34863.34863.34863.34863.34EPS - Annualised (Rs)-143.181.12-54.17-46.60-29.31NET LOSS RATIONet loss ratio= Net loss/Net sales* 100

Though it is a well known company, due to many reasons like the air fuel price escalation, they are not able to make the sufficient profits and hence suffered a loss for the past five years. But it is definitely a promising company.20082009201020112012-9.12-14.36-5.81-2.64-7.75Key Financial Ratios of Jet AirwaysMar '12Mar '11Mar '10Mar '09Mar '08Investment Valuation RatiosFace Value10.0010.0010.0010.0010.00Dividend Per Share----------Operating Profit Per Share (Rs)214.50289.91244.1169.3287.32Net Operating Profit Per Share (Rs)1,763.461,480.591,209.091,340.281,020.58Free Reserves Per Share (Rs)-79.0280.4879.35133.52198.05Bonus in Equity Capital10.8910.8910.8910.8910.89Profitability RatiosOperating Profit Margin(%)12.1619.5820.185.178.55Profit Before Interest And Tax Margin(%)5.8512.2910.81-2.57-0.26Gross Profit Margin(%)5.9912.4510.97-2.60-0.27Cash Profit Margin(%)-1.534.423.35-6.52-0.29Adjusted Cash Margin(%)-1.534.423.35-6.52-0.29Net Profit Margin(%)-7.930.07-4.41-3.44-2.83Adjusted Net Profit Margin(%)-7.930.07-4.41-3.44-2.83Return On Capital Employed(%)12.2812.338.81-1.070.65Return On Net Worth(%)229.141.15-56.54-31.07-13.66Adjusted Return on Net Worth(%)-93.98-40.33-73.29-128.38-43.41Return on Assets Excluding Revaluations-62.4896.9195.79149.96214.49Return on Assets Including Revaluations136.78301.66306.02365.67527.21Return on Long Term Funds(%)15.4114.3112.08-1.410.74Liquidity And Solvency RatiosCurrent Ratio0.390.640.340.370.61Quick Ratio0.500.770.861.090.77Debt Equity Ratio--16.1116.8012.616.49Long Term Debt Equity Ratio--14.2211.989.335.63Debt Coverage RatiosInterest Cover1.311.721.31-0.260.19Total Debt to Owners Fund8.2216.1116.8012.616.49Financial Charges Coverage Ratio1.101.431.240.490.82Financial Charges Coverage Ratio Post Tax0.851.491.271.341.50Management Efficiency RatiosInventory Turnover Ratio3,051.042,778.814,349.407,370.162,143.82Debtors Turnover Ratio13.6414.3913.5311.319.19Investments Turnover Ratio3,051.042,778.814,349.407,370.162,143.82Fixed Assets Turnover Ratio0.810.720.590.620.54Total Assets Turnover Ratio1.500.910.720.660.65Asset Turnover Ratio0.810.720.590.620.54Average Raw Material Holding----------Average Finished Goods Held----------Number of Days In Working Capital-85.6411.122.2227.70-8.83Profit & Loss Account RatiosMaterial Cost Composition----------Imported Composition of Raw Materials Consumed----------Selling Distribution Cost Composition8.949.879.439.4911.15Expenses as Composition of Total Sales44.3544.5639.1142.2929.47Cash Flow Indicator RatiosDividend Payout Ratio Net Profit----------Dividend Payout Ratio Cash Profit----------Earning Retention Ratio--100.00------Cash Earning Retention Ratio--100.00100.00----AdjustedCash Flow Times--23.5239.06----Mar '12Mar '11Mar '10Mar '09Mar '08Earnings Per Share-143.181.12-54.17-46.60-29.31Book Value-62.4896.9195.79149.96214.49