UB group fattens staff bill by Rs 400 crore cuts on Kingfisher

New Delhi: Vijay Mallya-led UB Group, whose aviation entity Kingfisher Airlines is passing through turbulent times, spent Rs 400 crore more on its staff across various businesses during the last fiscal.
The group's total staff cost rose to Rs 1,682 crore in the fiscal year ended March 31, 2012 -- marking an increase of about one-third from Rs 1,274 crore in the previous year.
Barring Kingfisher Airlines, all the other entities saw their employee expenses rise during the last year, shows an analysis of staff costs at the group's seven listed companies. At Kingfisher, the decline was only marginal to Rs 669 crore in 2011-12, from Rs 676 crore in the previous fiscal.
IIncidentally, Kingfisher Airlines recorded the highest ratio of staff costs to total sales among the group companies, even as the issue of on-time payment of salaries to staff has been a major concern for the air carrier for many months now.
The airline's staff bill (Rs 669 crore) accounted for 12.2 per cent of its sales (Rs 5,493 crore) in 2011-12, which was incidentally higher than 10.6 per cent in last fiscal.
10/06/12 PTI/Business Standard

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Categories: Kingfisher Jun 2012