Shares of SpiceJet moved higher by 15 per cent to Rs 40.75 on the BSE in Friday’s intra-day trade after the company’s standalone net profit jumped five-fold to Rs 107 crore in the December quarter (Q3FY23). It had posted profit of Rs 23.28 crore in the year ago quarter (Q3FY22). The profits have been driven by a strong performance in both, passenger and cargo businesses.
The total revenue for the reported quarter was Rs 2,794 crore as against Rs 2,679 crore in the same quarter of the previous year. Earnings before interest, taxes, depreciation, amortisation, and restructuring or rent costs (Ebitdar) stood at Rs 591 crore against loss of Rs 387 crore in the previous quarter (Q2FY23).
The company continued strong performance in passenger business with the highest domestic load factor of 91 per cent and operating revenue increased by 19 per cent QoQ to Rs 2,315 crore. The airline launched 15 new routes and operated 254 charter flights in the quarter.
“Despite a big jump in passenger traffic, business has continued to be impacted by high fuel prices and depreciating Rupee. There are renewed signs of recovery and some very positive developments and restructuring initiatives in the immediate offing that would significantly strengthen and deleverage the company’s balance sheet”, the management said.
“Air travel has come roaring back touching newer heights and giving a glimpse of the huge potential of the Indian aviation market and we look forward to a robust and exciting 2023,” Ajay Singh, Chairman and Managing Director, SpiceJet, said.
SpiceJet operates a fleet of Boeing 737s, Q-400s & freighters and is the country’s largest regional player operating multiple daily flights under UDAN or the Regional Connectivity Scheme. The majority of the airline’s fleet offers SpiceMax, the most spacious economy class seating in India.
The airline also operates a dedicated air cargo service under the brand name SpiceXpress offering safe, on-time, efficient and seamless cargo connectivity across India and on international routes.
At 03:02 PM, SpiceJet was quoting 12 per cent higher at Rs 39.60 on the BSE. In comparison, the S&P BSE Sensex was down 0.24 per cent at 59,460. The average trading volumes on the counter jumped over three-fold. A combined 18.7 million equity shares have changed hands on the NSE and BSE so far.
However, in the past one year, the stock has underperformed the market, by falling 30 per cent, as compared to 9 per cent rally in the Sensex. It had hit a 52-week low of Rs 32 on February 15, 2023.
