Jet Airways falls 5% post Q2 results

Jet Airways (India) dipped 5% to Rs 665 on the BSE in intra-day trade after the company reported a 91% drop in standalone net profit at Rs 50 crore in September quarter (Q2FY18), due to higher fuel expenses. It had profit of Rs 549 crore in the same quarter year ago.

Revenue from operations grew 3% at Rs 5,627 crore against Rs 5,453 crore in the corresponding quarter of previous year.

Quarterly total expenses rose 9.2% to Rs 5,709 crore with aircraft fuel expenses rising about 17% at Rs 1,526 crore over the previous year quarter.

“Various initiatives undertaken by the company in relation to cost synergies, revenue management opportunities, enhanced ancillary revenues have resulted in significant improvement in operating cash flows. Further, the company’s thrust to improve operational efficiency and initiatives to raise funds are expected to result in sustainable cash flow,” Jet Airways said in a note.

The stock had a strong run-up in past two months, appreciated 43% as compared to 3.6% rise in the S&P BSE Sensex till Thursday.

At 10:20 AM; it was trading at 3% lower at Rs 675 against 0.71% rise in the benchmark index. A combined 2.93 million shares changed hands on the counter on the NSE and BSE.