19 November 2019

Newsbreakers

TOP FLIER

Naresh Goyal is smiling like never before. Less than two years after the Jet-Etihad deal, there are encouraging signs of a sustained recovery at India’s second largest private carrier. Beating street estimates by a significant margin the airline posted impressive profitability and growth in revenues for the quarter ended June 30 – a net profit of Rs.221.70 crore as against a loss of Rs.217.60 crore in the same period a year ago while its net sales rose by 11.55 per cent to Rs.4,834.50 crore, against the same quarter last year.  The turnaround in Jet’s operational and financial fortunes is reflected in the company’s stock price as well. Much of 65 year old Goyal’s recent cheerful demeanour owes to operational efficiencies introduced post the tie-up with Etihad. The strategic investment has led to overall cost synergies and revenue growth opportunities for both airlines. It has led to optimising routes and network; procurement of aircraft, spares and services; sharing of manpower and training facilities. At the recently held Dubai Air Show Goyal announced that his firm would buy 75 fuel-efficient B737 MAX planes valued at $8 billion at list price from Boeing Co – this is its largest order so far – to compete with domestic and international rivals that have already placed orders for similar planes. The new aircraft are expected to support Jet's replacement strategy and ensure that the airline maintains a modern, environment-friendly fleet. Since its founding Jet Airways has led the path in Indian aviation, providing enhanced connectivity between domestic and international sectors. Now with the government looking to give a fillip to India’s aviation sector Goyal’s looking to soar.

 

 

STEEL BOSS   

It’s been a good two years at the helm for T V Narendran, Managing Director, Tata Steel India. Notwithstanding the ongoing downturn in global commodity prices and seasonal weakness in demand his company has been able to increase its deliveries by 9 per cent during the quarter on the back of strong sales to the auto sector and a higher proportion of value added products. Under Narendran’s stewardship the Mumbai headquartered steelmaker has reported a 22 per cent rise in consolidated net profit at Rs.1,528.71 crore in the September quarter. Not just that the company has commissioned the first phase (3 million tonnes per annum) of its 6 MTPA capacity Kalinganagar steel plant — the largest single-location greenfield steel project in India.  The company plans to expand the plant’s capacity to 16 MTPA by 2025 with the cumulative investment amounting to Rs.1,00,000 crore. Narendran who has been with Tata Steel since 1988 straight after his MBA from IIM Calcutta, was actively involved in the company’s first overseas acquisition, NatSteel. He played a key role in the integration of the two companies. Prior to his appointment as MD - Tata Steel India and South East Asia, in November two years ago, he was the Vice President - Safety & Flat Products Divisions of Tata Steel. During his stint in NatSteel, Narendran was a director on the Board of South East Asia Iron & Steel Institute (SEAISI) and also served as the President of the ASEAN Iron & Steel Federation (AISIF). 

 




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