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Jet Airways’ vice president of finance, Shiv Kumar, tells CNBC-TV18 that the loss incurred in Q4 on an annual basis was mainly on account of fuel price hikes. “We were not able to pass on this cost which resulted in margins shrinking in Q4,” he says. Yield has also marginally dropped for the company, while Shiv Kumar claims that market share is up a tad. Below is the verbatim transcript. Also watch the accompanying video.

Q: Can you just start off by highlighting what the quarter 4 numbers have been?

A: As far as the standalone is concerned, the fourth quarter has seen a growth of about 17%.

Q: Can you tell me the absolute numbers? What have you done on revenues and what have you posted in terms of a bottom line?

A: The Rs 2777 crore closing is for the last quarter for the last year, and the current quarter is at Rs 3243 crore. This translates to a growth of about 17%. The expenditure has mainly been on account of the fuel increases. The fuel bill has risen by 51% over the last quarter and the increased value was Rs 433 crore. We were not able to pass this cost on. As a result, we see some loss in Q4, but on an annual standalone basis, we have just about bear minimum profit of about of about Rs 9.69 crore.

Q: What’s the quarter four loss amount?

A: Quarter four for standalone is about Rs 125 crore (of loss).

Q: Can you just give me a breakup of what domestic and international revenues and load factors have looked like?

A: Yes, quarter four domestic is 73% and international has been an 80% load factor. It is more or less the same load factor of about 73-82% as witnessed in the last year for the same period.

Also see: Jet Airways FY11 cons net loss at Rs 86 cr

Q: Could you give us an update on what the yields stood at for quarter four and also what your market share, domestic market?

A: The yield has been somewhat close to the previous year yield. However, this year yield has seen a marginal drop, and both in the international and domestic, more or less holding at the same rate. We have not been able to increase the yield. As far as the market share is concerned, a marginal increase in market share compared to what we were having for the same period in the previous year has been reported.

Q: Could you tell us what is your overall net profit number for the fiscal? You said Rs 9.6 crore in terms of a net profit?

A: Yes, after tax is Rs 9.69 crore, for the standalone. On a consolidated basis, it is Rs 85 crore loss.

Q: What kind of fuel cost are you hoping to see? How much more of a pressure is it going to put in balance sheet in the next couple of quarters?

A: See fuel is now subsiding, so to that extent, we hope that this trend that we witness in the fourth quarter will not continue. This quarter has been severe for most of the airlines. For Jet Airways alone, on a standalone basis, we had something close to Rs 433 crore of increase in fuel bill for the fourth quarter. Largely, it has come only on account of the rates. Out of that Rs 433 crore, I would say Rs 343 crore has been on account of increase in rates and the balance on account of increase in operations. We do not expect this trend to continue, it has subsided and we will hope to see better things in the coming quarter.

Tags: Jet Airways, fuel price hikes, market share, expenditure, annual standalone, load factors