Company FundamentalsCompany Fundamentals\Company Profile COMPANY PROFILE Figures in Indian Rupees A Wright Investors' Service Research Report: Kingfisher Airlines Limited 440 Wheelers Farms Road Milford, CT 06461 U.S.A. Wright Quality Rating :CLNN Kingfisher Airlines Limited is engaged in rendering scheduled and unscheduled aircraft passenger and cargo services, including charter services. The Company offers three classes of service: Kingfisher First (premium business class of service), Kingfisher Class (premium economy class of service) and Kingfisher Red (low fare basic class of service). As of March 31, 2010, the Company had a fleet of 68 aircraft, having an average schedule of 366 domestic and 12 international flights daily and a route network covering 63 domestic and seven international destinations. The Company's wholly owned subsidiary is Vitae India Spirits Limited. During the fiscal year ended March 31, 2010 (fiscal 2010), the Company returned five Airbus A320 aircraft, 4 ATR-42 aircraft and 1 ATR-72 aircraft. Stock Price (7/15/2011): 39.80 Stock Chart Recent stock performance 1 Week 2.2% 4 Weeks 0.8% 13 Weeks - 11.0% 52 Weeks - 21.6% Chairman & Managing Director Dr. Vijay Mallya Chief Executive Officer Sanjay Aggarwal Chief Financial Officer A. Raghunathan Secretary & Chief Compliance Officer Bharath Raghavan Officers Earnings / Dividends (as of 3/31/2011) Earnings Dividends Most Recent Qtr -13.3 0.00 Last 12 Months -38.6 0.00 Ratio Analysis Price / Earnings Ratio N/A Dividend Yield 0.00% Price / Sales Ratio 0.32 Payout Ratio N/A Key Data Ticker: 532747 2011 Sales: 62,333,790,000 Major Industry: Transportation Sub Industry: Airlines Country: India Currency: Indian Rupees Fiscal Year Ends: March Employees 7,319 Exchanges: BOM Share Type: Ordinary Market Capitalization: 19,811,613,075 Total Shares Outstanding: 497,779,223 Closely Held Shares: 176,217,925
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Company FundamentalsCompany Fundamentals\Company Profile
COMPANY PROFILE Figures in Indian Rupees
A Wright Investors' Service Research Report: Kingfisher Airlines Limited
440 Wheelers Farms Road Milford, CT 06461 U.S.A.
Wright Quality Rating:CLNN
Kingfisher Airlines Limited is engaged in rendering scheduled and unscheduled aircraft passenger and cargo services, including charter services. The Company offers three classes of service: Kingfisher First (premium business class of service), Kingfisher Class (premium economy class of service) and Kingfisher Red (low fare basic class of service). As of March 31, 2010, the Company had a fleet of 68 aircraft, having an average schedule of 366 domestic and 12 international flights daily and a route network covering 63 domestic and seven international destinations. The Company's wholly owned subsidiary is Vitae India Spirits Limited. During the fiscal year ended March 31, 2010 (fiscal 2010), the Company returned five Airbus A320 aircraft, 4 ATR-42 aircraft and 1 ATR-72 aircraft.
Company Fundamentals\Comparative Business Analysis
A Wright Investors' Service Research Report: Kingfisher Airlines Limited Provided By CorporateInformation.com
440 Wheelers Farms Road Milford, CT 06461 U.S.A.
Wright Comparative Business Analysis Report
Report Date: 7/15/2011
Company Description Kingfisher Airlines Limited is engaged in rendering scheduled and unscheduled aircraft passenger and cargo services, including charter services. The Company offers three classes of service: Kingfisher First (premium business class of service), Kingfisher Class (premium economy class of service) and Kingfisher Red (low fare basic class of service). As of March 31, 2010, the Company had a fleet of 68 aircraft, having an average schedule of 366 domestic and 12 international flights daily and a route network covering 63 domestic and seven international destinations. The Company's wholly owned subsidiary is Vitae India Spirits Limited. During the fiscal year ended March 31, 2010 (fiscal 2010), the Company returned five Airbus A320 aircraft, 4 ATR-42 aircraft and 1 ATR-72 aircraft.
Competitor Analysis
Kingfisher Airlines Limited operates in the Air transportation, scheduled sector. This analysis compares Kingfisher Airlines Limited with three other companies: Jet Airways (India) Ltd. (2011 sales of 134.78 billion Indian Rupees [US$3.03 billion] ), Spicejet Limited (2011 sales: 28.80 billion Indian Rupees [US$646.74 million] ), and Pal Holdings Incorporated which is based in Philippines (2010 sales of 59.03 billion Philippine Pesos [US$1.37 billion] of which 100% was Airline Business). Note: not all of these companies have the same fiscal year: the most recent data for each company are being used.
Sales Analysis
Kingfisher Airlines Limited reported sales of 62.33 billion Indian Rupees (US$1.40 billion) for the fiscal year ending March of 2011. This represents an increase of 24.9% versus 2010, when the company's sales were 49.90 billion Indian Rupees.
Recent Sales at Kingfisher Airlines Limited
(Figures in Billions of Indian Rupees) Kingfisher Airlines Limited currently has 7,319 employees. With sales of 62.33 billion Indian Rupees (US$1.40 billion) , this equates to sales of US$191,285 per employee.
Sales Comparisons (Most Recent Fiscal Year)
9.9
17.7
19.2
51.6
49.9
62.3
2006 2007 2008 2009 2010 2011
CompanyYear Ended
Sales (US$blns)
Sales Growth
Sales/ Emp (US$) Largest Region
Kingfisher Airlines Limited Mar 2011 1.400 24.9% 191,285 N/AJet Airways (India) Ltd. Mar 2011 3.027 16.0% 267,220 N/ASpicejet Limited Mar 2011 0.647 32.0% 284,781 N/APal Holdings Incorporated Mar 2010 1.371 -14.8% 183,141 N/A
Recent Stock Performance
In recent years, this stock has performed terribly. In fiscal year 2008, the stock traded as high as 334.45 Indian Rupees, versus 39.80 Indian Rupees on 7/15/2011. (In 2008, the stock retreated significantly from its high, and by the end of the year was at 122.00 Indian Rupees). For the 52 weeks ending 7/15/2011, the stock of this company was down 21.6% to 39.80 Indian Rupees. During the past 13 weeks, the stock has fallen 11.0%. During the 12 months ending 3/31/2011, the company has experienced losses totalling 38.55 Indian Rupees per share. Note that the earnings number Includes Or Excludes Extraordinary Charge Or Credit. This company is currently trading at 0.32 times sales. This is at a lower ratio than all three comparable companies, which are trading between 0.32 and 0.53 times their annual sales. This company has negative book value (and thus a price to book value would not make any sense).
Summary of company valuations (as of 7/15/2011).
The market capitalization of this company is 19.81 billion Indian Rupees (US$444.97 million) . The capitalization of the floating stock (i.e., that which is not closely held) is 12.80 billion Indian Rupees (US$287.45 million) .
Dividend Analysis
This company has paid no dividends during the last 12 months. The company also reported losses during the previous 12 months. The company has not paid any dividends during the previous 6 fiscal years.
Profitability Analysis On the 62.33 billion Indian Rupees in sales reported by the company in 2011, the cost of goods sold totalled 63.55 billion Indian Rupees, or 102.0% of sales (i.e., the gross profit was -2.0% of sales). This gross profit margin is better than the company achieved in 2010, when cost of goods sold totalled 117.4% of sales. In 2011, the gross margin was the highest of the previous five years (and in 2008 was as low as -49.4%). In 2011, earnings before extraordinary items at Kingfisher Airlines Limited were -10.27 billion Indian Rupees, or -16.5% of sales. This profit margin is an improvement over the level the company achieved in 2010, when the profit margin was -33.0% of sales. The company has reported losses before extraordinary items for each of the past 6 years.
Profitability Comparison
Financial Position
At the end of 2011, Kingfisher Airlines Limited had negative working capital, as current liabilities were 41.67 billion Indian Rupees while total current assets were only 29.64 billion Indian Rupees. The fact that the company has negative working capital could indicate that the company will have problems in expanding. However, negative working capital in and of itself is not necessarily bad, and could indicate that the company is very efficient at turning over inventory, or that the company has large financial subsidiaries. At the end of 2011, the company had negative common shareholder's equity of -29.51 billion Indian Rupees. This means that at the present time, the common shareholders have essentially no equity in the company. This is further compounded by the fact that among the assets the company does have on its balance sheet, there are 1.26 billion Indian Rupees in intangible assets. This company's total liabilities are higher than total equity, which means that the money this company owes are greater than all of the assets of the company. As of March 2011, the company's long term
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Company Fundamentals\Summary Analysis
SUMMARY ANALYSIS: Kingfisher Airlines Limited Per Share- Indian Rupees
Year Price Value Ratios Equity Capital Earnings Dividends
Fiscal Yr Ends: March
Market Price Last
Price/ Earnings
Ratio
Price/ Book Ratio
Dividend Yield
% Earned Growth
% Profit Rate (ROE)
Book Value Begin
Yr
12 Month Earnings
Per Share
% Change
% Payout Ratio
12 Month Dividends Per Share
2006 B 85.80 n/c n/c 0.0% n/c n/c n/a D -54.59 n/c n/c 0.00
2007 137.50 n/c 6.0 0.0% -185.0%
-185.0% 22.83 AD -
42.24 n/c n/c 0.00
2008 BC 122.00 n/c 4.3 0.0% -69.4% -69.4% 28.40 AD -19.70 n/c n/c 0.00
(A): INCLUDES OR EXCLUDES EXTRAORDINARY CHARGE OR CREDIT - INCLUDES OR EXCLUDES EXTRAORDINARY CHARGE OR CREDIT, INCLS 13.45 PRETAX CHG IN FIS 2010 (2.18 PRETAX CHG MAR , 8.18 PRETAX CHG DEC, 1.75 PRETAX CHG SEP& 1.34 PRETAX CHG JUN), INCLS 0.98 CR & 1.84 PRETAX CR IN FIS 2008, INCLS 29.04 PRETAX CR JUN 2007, EXCLS 1.18 CHG IN FIS 2005, EXCLS 0.02 CHG IN FIS 2004
(B): YEAR END CHANGED FROM JUN IN FIS 2008. 2008 INCOME STATEMENT RESULTS & RELATED ITEMS ARE ESTIMATED TO REFLECT 12 MONTHS OF OPERATIONS THROUGH MAR, YEAR END CHANGED FROM MAR IN FIS 2006. 2006 INCOME STATEMENT RESULTS & RELATED ITEMS ARE ESTIMATED TO REFLECT 12 MONTHS OF OPERATIONS THROUGH JUN
(C): NAME CHANGED FROM DECCAN AVIATION LTD IN SEP 2008
(D): BASED ON AVERAGE SHARES OUTSTANDING, (U ): BASED ON AVERAGE SHARES OUTSTANDING, (U ): BASED ON AVERAGE SHARES OUTSTANDING, INFORMATION UPDATED FROM 2006 PROSPECTUS, AS 2005 ANNUAL REPORT NOT AVAILABLE, INFORMATION UPDATED FROM 2006 PROSPECTUS, AS 2004 ANNUAL REPORT NOT AVAILABLE, INFORMATION UPDATED FROM 2006 PROSPECTUS, AS 2003 ANNUAL REPORT NOT AVAILABLE, INFORMATION UPDATED FROM 2006 PROSPECTUS, AS 2002 ANNUAL REPORT NOT AVAILABLE
Company Fundamentals\Earnings & Dividends Analysis
EARNINGS AND DIVIDENDS ANALYSIS: Kingfisher Airlines Limited Per Share- Indian Rupees Fiscal Year Ends in March
(A): INCLUDES OR EXCLUDES EXTRAORDINARY CHARGE OR CREDIT - INCLUDES OR EXCLUDES EXTRAORDINARY CHARGE OR CREDIT, INCLS 13.45 PRETAX CHG IN FIS 2010 (2.18 PRETAX CHG MAR , 8.18 PRETAX CHG DEC, 1.75 PRETAX CHG SEP& 1.34 PRETAX CHG JUN), INCLS 0.98 CR & 1.84 PRETAX CR IN FIS 2008, INCLS 29.04 PRETAX CR JUN 2007, EXCLS 1.18 CHG IN FIS 2005, EXCLS 0.02 CHG IN FIS 2004
(B): YEAR END CHANGED FROM JUN IN FIS 2008. 2008 INCOME STATEMENT RESULTS & RELATED ITEMS ARE ESTIMATED TO REFLECT 12 MONTHS OF OPERATIONS THROUGH MAR, YEAR END CHANGED FROM MAR IN FIS 2006. 2006 INCOME STATEMENT RESULTS & RELATED ITEMS ARE ESTIMATED TO REFLECT 12 MONTHS OF OPERATIONS THROUGH JUN
(C): NAME CHANGED FROM DECCAN AVIATION LTD IN SEP 2008
(D): BASED ON AVERAGE SHARES OUTSTANDING, (U ): BASED ON AVERAGE SHARES OUTSTANDING, (U ): BASED ON AVERAGE SHARES OUTSTANDING, INFORMATION UPDATED FROM 2006 PROSPECTUS, AS 2005 ANNUAL REPORT NOT AVAILABLE, INFORMATION UPDATED FROM 2006 PROSPECTUS, AS 2004 ANNUAL REPORT NOT AVAILABLE, INFORMATION UPDATED FROM 2006 PROSPECTUS, AS 2003 ANNUAL REPORT NOT AVAILABLE, INFORMATION UPDATED FROM 2006 PROSPECTUS, AS 2002 ANNUAL REPORT NOT AVAILABLE
Financial Statement AnalysesFinancial Statement Analyses\Balance Sheet - Common Size
Balance Sheet - (Common Size): Kingfisher Airlines Limited Figures are expressed as Percent of Total Assets. Total Assets are in millions of Indian Rupees. Fiscal Year 2010 2009 2008 2007 2006
Fiscal Year End Date 3/31/2010 3/31/2009 3/31/2008 6/30/2007 6/30/2006
Assets
Total Assets 51,659.0 53,663.1 13,012.7 17,574.9 11,157.8
Cash & Short Term Investments 4.0% 3.2% 21.5% 46.5% 23.0%
Cash 1.0% 0.9% 0.4% 24.0% 16.2%
Short Term Investments 3.0% 2.3% 21.1% 22.5% 6.7%
Receivables (Net) 24.0% 13.8% 22.8% 8.7% 13.8%
Inventories -Total 3.2% 2.7% 3.7% 3.5% 5.1%
Raw Materials 0.0% 0.0%
Work in Process 0.0% 0.0%
Finished Goods 0.0% 0.0%
Progress Payments & Other 2.7% 3.7% 3.5% 5.1%
Prepaid Expenses 0.3% 0.2% 0.7% 0.1% 0.1%
Other Current Assets 16.0% 17.1% 1.9% 1.7% 8.1%
Current Assets - Total 47.6% 37.1% 50.7% 60.5% 50.1%
Long Term Receivables
Investment in Associated Companies 0.0% 0.0% 0.0% 0.0%
Balance Sheet - (Year to Year Percent Change): Kingfisher Airlines Limited Figures are the Percent Changes from the Prior Year. Fiscal Year 2010 2009 2008 2007 2006
Fiscal Year End Date 3/31/2010 3/31/2009 3/31/2008 6/30/2007 6/30/2006
Assets
Total Assets -3.7% 312.4% -26.0% 57.5% 192.1%
Cash & Short Term Investments 20.1% -38.6% -65.7% 218.6% 209.3%
Cash 3.0% 746.6% -98.6% 133.0% 118.5%
Short Term Investments 27.0% -55.4% -30.6% 424.5%
Receivables (Net) 67.3% 150.0% 93.5% -0.2% 262.6%
Inventories -Total 12.0% 202.7% -21.1% 7.6% 57.3%
Raw Materials
Work in Process
Finished Goods
Progress Payments & Other 202.7% -21.1% 7.6% 57.3%
Prepaid Expenses 37.3% 31.6% 276.8% 100.1%
Other Current Assets -9.6% 3,621.8% -15.6% -67.7% 464.2%
Current Assets - Total 23.5% 201.5% -38.0% 90.3% 214.5%
Financial Statement Analyses\Income Statement - Common Size
Income Statement - (Common Size): Kingfisher Airlines Limited Figures are expressed as Percent of Net Sales or Revenues. Net Sales or Revenues are in millions of Indian Rupees. Fiscal Year 2010 2009 2008 2007 2006
Net Sales or Revenues 49,896.7 51,632.4 19,218.6 17,704.1 9,891.2
Cost of Goods Sold 117.4% 136.1% 149.4% 140.2% 131.0%
Income Statement - (Year to Year Percent Change): Kingfisher Airlines Limited Figures are the Percent Changes from the Prior Year. Fiscal Year 2010 2009 2008 2007 2006
Net Sales or Revenues -3.4% 168.7% 8.6% 79.0% 223.7%
Cost of Goods Sold -16.6% 144.7% 15.7% 91.6% 305.6%
Financial Statement Analyses\Sources of Capital - Net Change
Sources of Capital: Kingfisher Airlines Limited Currency figures are in millions of Indian Rupees. Year to year % changes pertain to reported Balance Sheet values. Fiscal Year 2010 2009 2008 2007 2006
Fiscal Year End Date 3/31/2010 3/31/2009 3/31/2008 6/30/2007 6/30/2006
Total Capital -11,569.2 2,553.7 7,197.5 5,756.4 5,019.7
Percent of Total Capital
Short Term Debt 1,236.7% 59.3% 125.2% 39.6%
Long Term Debt 932.3% 72.4% 33.2% 55.3%
Other Liabilities 0.0% 0.0% 0.0% 0.0%
Total Liabilities 2,933.6% 153.2% 238.5% 177.6%
Minority Interest 0.0% 0.0% 0.0%
Preferred Stock 38.0% 0.0% 0.0% 0.0%
Retained Earnings -1,009.0% -71.5%
Common Equity -870.2% 27.6% 66.8% 44.7%
Total Capital 100.0% 100.0% 100.0% 100.0%
Year to Year Net Changes
Short Term Debt 1,861.2 2,731.4 -293.9 521.8 194.7
Long Term Debt 332.8 1,859.8 329.9 -86.9 -2.1
Other Liabilities 0.0 0.0 0.0 0.0 0.0
Total Liabilities 1,544.7 6,389.3 -270.4 481.2 497.3
Minority Interest 0.0 0.0 0.0
Preferred Stock 0.0 97.0 0.0 0.0 0.0
Retained Earnings 2,576.6
Common Equity -1,745.1 -2,421.2 -185.8 160.6 236.5
Total Capital -1,412.3 -464.4 144.1 73.7 234.4
Year to Year Percent Changes
Short Term Debt 58.9% 640.0% -40.8% 262.3% 4,588.5%
Long Term Debt 14.0% 357.1% 172.8% -31.3% -0.7%
Other Liabilities
Total Liabilities 20.6% 579.6% -19.7% 54.0% 126.1%
Minority Interest
Preferred Stock 0.0%
Retained Earnings
Common Equity -1,217.5% -48.3% 71.6%
Total Capital -553.0% -64.5% 25.0% 14.7% 87.6%
Total Liabilities & Common Equity
Total Liabilities 90,363.6 74,916.5 11,024.0 13,728.0 8,916.4
Net Change in Liabilities as % of Total Liabilities 17.1% 85.3% -24.5% 35.0% 55.8%
Common Equity -39,674.6 -22,223.5 1,988.7 3,847.0 2,241.4
Net Change in Common Equity as % of Common Equity -93.4% 41.7% 105.5%
Asset Utilization: Kingfisher Airlines Limited Figures are expressed as the ratio of Net Sales. Net Sales are in millions of Indian Rupees. Fiscal Year 2010 2009 2008 2007 2006
Fiscal Year End Date 3/31/2010 3/31/2009 3/31/2008 6/30/2007 6/30/2006
Net Sales 49,896.7 51,632.4 19,218.6 17,704.1 9,891.2
Per Share Data: Kingfisher Airlines Limited Figures are expressed as per unit of respective shares. Figures are in Indian Rupees. Fiscal Year 2010 2009 2008 2007 2006
Fiscal Year End Date 3/31/2010 3/31/2009 3/31/2008 6/30/2007 6/30/2006
Sales 187.65 194.17 141.52 130.69 100.74
Operating Income -45.09 -77.67 -75.04 -55.60 -35.42
Pre-tax Income -90.70 -81.52 -68.58 -30.97 -27.75
Net Income (Continuing Operations) -90.93 -81.52 -50.53 -30.97 -34.69
Net Income Before Extra Items -61.95 -60.50 -19.69 -30.97 -27.75
Extraordinary Items 0.00 0.00 0.00 0.00 0.00
Net Income After Extraordinary Items -61.95 -60.50 -19.69 -30.97 -27.75
Net Income Available to Common Shares -61.95 -72.33 -19.70 -42.24 -54.59