Kathmandu. Yeti Airlines, which is going to launch the IPO, has got a triple B minus issuer rating.
Rating agency Infomerics Credit Rating Nepal has given this rating to Yeti Airlines. Such a rating is based on an assessment of the financial strength of companies issuing public shares to raise capital from the public. Companies with triple B minus valuation are considered to have a moderate level of risk regarding providing services on time of financial obligations.
Its operating income has also increased by 29 percent in the first nine months of the last fiscal year compared to the previous fiscal year. During the review period, the income stood at Rs 4.11 billion.
According to a press release issued by Infomerics Nepal, the last fiscal year 2081. In the first nine months of 82, its passenger load has reached 82 percent. Before the fiscal year 2079. 80 This ratio was only 78 percent.
Yeti Airlines, which has a total of seven aircraft, including one leased aircraft, has a market share of 21 percent. The company’s ticket sales increased by 13 percent in the third quarter of the last fiscal year. Apart from this, Infomerics has made this assessment in the financial year 2080. It also reflects on the company’s strong recovery after an air crash in 1981. “Fiscal year 2081. The strong growth in scheduled flights, number of passengers and total operating income at 82 is considered as the mainstay of the rating.”
Yeti Airlines, which added two aircraft after bringing asian life insurance company as a partner, has increased its profit before the tax deduction to 26 percent in the previous fiscal year and the last financial year. Similarly, profit margin after tax was 5.47 percent in the third quarter of the last fiscal year. In the previous fiscal year, such margins were only 2 percent.
Yeti Airlines has received triple B-minus rating for loan facilities from banks and financial institutions. Out of the total loan facility of Rs 6.36 billion, Yeti Airlines received a triple B-minus rating of Rs 2.95 billion and long-term loans worth USD 27.1 million. Similarly, Yeti Airlines has received A-3 rating for short-term loan of Rs 757.3 million.
