BackThe Mint Report for 19 May 2011
The Mint Report for 19 May 2011
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India’s biggest private airline, Jet Airways, reported it had landed in losses in the fourth quarter. Consolidated net loss was at Rs210 crore from Rs225 core in the same period last year. That’s despite a revenue rise of 15% to Rs3,656 crore. Jet blamed soaring fuel prices for the decline in profits. But the carrier said it was confident earnings growth would increase this fiscal. Investors meanwhile remained unimpressed. Shares of the airline lost 0.40% on the BSE to 458.15 on a day the Sensex gained 0.30%.
Also in earnings, engineering major Larsen and Tubro has beaten expectations.
The company reported a 17.2% increase in fourth quarter profit to Rs1, 686 crore.
Those numbers include a one-time gain of Rs227 crore that came from L & T’s exit from a joint venture. Net sales went up 13% to Rs15,078 crore. But operating margin for the quarter declined to 12.8% from 13% in the same period last year. Chairman A.M. Naik said rising inflation, high interest rates and political uncertainty had delayed the development of new projects. Shares of the firm gained 5.92% on the BSE to 1594.90 by the end of trade.
In other news, food inflation has eased slightly in the first week of May. The food price index stood at 7.47% during the period to 7 May. That’s compared to the 7.7% the previous week. The met department has already forecast a normal monsoon this year. And if it rains as predicted, food inflation may decline further.
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