Analysts expect Jet to post profit at Rs 116.5 cr in Q3

Country's largest private airline company Jet Airways is set to announce its results for the third quarter of financial year 2012-13 on Friday. Analysts on an average expect the company to turn profitable with net profit at Rs 116.5 crore for the December quarter as against net loss of Rs 99.6 crore in September quarter.

Revenues are seen going up by 16.5 percent to Rs 4,826 crore from Rs 4,137.6 crore during the same period, according to CNBC-TV18 poll. Earnings before interest, tax, depreciation and amortisation (EBITDA) are likely to go up by 2.9 times quarter-on-quarter to Rs 950 crore in October-December quarter. Operating profit margin is expected to improve quite significantly to 19.6 percent as against 7.6 percent QoQ. According to analysts, December quarter is seasonally strong for aviation industry; yields remain healthy due to lower fleet supply and peak season demand. Analysts expect revenue growth due to 21 percent YoY rise in yields and around 9.2 percent rise in international passenger traffic (forming 28 percent of total pax traffic). Although international passenger traffic was higher, domestic passenger traffic has slowed down (down 1.7 percent YoY for industry) due to high ticket prices and high base effect. For Jet Airways, however, even in second quarter, despite it being the weakest Q seasonally, positive surprise was higher yields with gross revenue per passenger rising 3 percent QoQ. Analysts feel international yields will improve further led by cutting down of loss making routes and further impact of hike in fuel surcharges while losses from Jet lite will recede further. In September quarter, Jet lite posted losses of Rs 66.3 crore as against loss of Rs 100 crore in a year ago period. According to analysts, load factors will improve to 77 percent in December quarter as against 75 percent YoY (and 65.6 percent QoQ but not comparable due to seasonality).
Shares rallied more than 85 percent in last three months and nearly 7 percent in three days on hopes of deal with Abu Dhabi-based Etihad, which is expected to be announced today, sources said. The stock rose 1.4 percent ahead of results.