JET AIRWAYS 2017-18 Annual Report Analysis

Sat, 31 Mar

JET AIRWAYS has announced its results for the year ended March 2018. Let us have a look at the detailed performance review of the company during FY17-18.

JET AIRWAYS Income Statement Analysis

• Operating income during the year rose 8.0% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 94.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 0.3% in FY18 as against 6.6% in FY17.
• Depreciation charges decreased by 7.5% and finance costs decreased by 1.1% YoY, respectively.
• Other income declined by 55.0% YoY.
• Net profit for the year declined by 150.2% YoY.
• Net profit margins during the year declined from 6.4% in FY17 to 3.0% in FY18.

JET AIRWAYS Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	226,926	245,107	8.0%
Other income	Rs m	14,825	6,668	-55.0%
Total Revenues	Rs m	241,751	251,775	4.1%
Gross profit	Rs m	14,930	784	-94.8%
Depreciation	Rs m	6,716	6,211	-7.5%
Interest	Rs m	8,587	8,489	-1.1%
Profit before tax	Rs m	14,453	-7,249	-150.2%
Tax	Rs m	-2	0	-100.0%
Profit after tax	Rs m	14,455	-7,249	-150.2%
Gross profit margin	%	6.6	0.3
Effective tax rate	%	0.0	0.0
Net profit margin	%	6.4	-3.0

Don't Miss: Key Information for Long-term Investors

JET AIRWAYS Balance Sheet Analysis

• The company's current liabilities during FY18 stood at Rs 145 billion as compared to Rs 119 billion in FY17, thereby witnessing an increase of 21.5%.
• Long-term debt down at Rs 51 billion as compared to Rs 70 billion during FY17, a fall of 27.0%.
• Current assets rose 34% and stood at Rs 73 billion, while fixed assets fell 24% and stood at Rs 57 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 130 billion as against Rs 129 billion during FY17, thereby witnessing a growth of 1%.

JET AIRWAYS Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	-65,052	-71,391	9.7
Current Liabilities	Rs m	119,346	145,052	21.5
Long-term Debt	Rs m	69,679	50,856	-27.0
Total Liabilities	Rs m	128,823	129,551	0.6
Current assets	Rs m	54,637	72,997	33.6
Fixed Assets	Rs m	74,187	56,554	-23.8
Total Assets	Rs m	128,823	129,551	0.6

JET AIRWAYS Cash Flow Statement Analysis

• JET AIRWAYS's cash flow from operating activities (CFO) during FY18 stood at Rs 17 billion, an improvement of 69.1% on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs -4 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs -16 billion, an improvement of 35% on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs -2 billion from the Rs 2 billion net cash flows seen during FY17.

JET AIRWAYS Cash Flow Statement 2017-18

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-17	Mar-18
Cash Flow from Operating Activities	Rs m	10,113	17,102	69.1%
Cash Flow from Investing Activities	Rs m	16,001	-3,617	-
Cash Flow from Financing Activities	Rs m	-23,904	-15,649	-
Net Cash Flow	Rs m	2,210	-2,165	-

Current Valuations for JET AIRWAYS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -63.8, an decline from the EPS of Rs 127.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 609.5, stands at -9.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at -1.0 times, while the price to sales ratio stands at 0.3 times.
• The company's price to cash flow (P/CF) ratio stood at -72.2 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*
Sales per share (Unadj.)	Rs	1,997.6	2,157.6
TTM Earnings per share	Rs	127.2	-63.8
Diluted earnings per share	Rs	127.2	-63.8
Price to Cash Flow	x	2.8	-72.2
TTM P/E ratio	x	10.8	-9.0
Price / Book Value ratio	x	-0.9	-1.0
Market Cap	Rs m	56,949	74,954
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for JET AIRWAYS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 0.5x during FY18, from 0.5x during FY17. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio deteriorated and stood at 0.1x during FY18, from 2.7x during FY17. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company improved and stood at 10.2% during FY18, from -22.2% during FY18. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company declined and down at -6.0% during FY18, from 497.9% during FY17. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company declined and down at 1.0% during FY18, from 17.9% during FY17. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*
Current ratio	x	0.5	0.5
Debtors’ Days	Days	215	191
Interest coverage	x	2.7	0.1
Debt to equity ratio	x	-1.1	-0.7
Return on assets	%	17.9	1.0
Return on equity	%	-22.2	10.2
Return on capital employed	%	497.9	-6.0

To see how JET AIRWAYS has performed over the last 5 years, please visit here.

JET AIRWAYS Share Price Performance

Over the last one year, JET AIRWAYS share price has moved up from Rs 526.0 to Rs 609.5, registering a gain of Rs 83.6 or around 15.9%.

Overall, the S&P BSE SENSEX is up 12.1% over the year.

(To know more, check out historical annual results for JET AIRWAYS and quarterly results for JET AIRWAYS)