SpiceJet shares fly 7% on six-fold jump in Q4 profit; gains 15% i

SpiceJet shares: SpiceJet airline reported a standalone net profit of Rs 119 crore in Q4FY24

SpiceJet shares Q4FY24 results: SpiceJet shares zoomed 7.3 per cent to Rs 60 per share on the BSE in Tuesday's (July 16's) intraday trade. This comes after SpiceJet, a budget airline, posted a six-fold jump in its standalone profit for the January to March quarter of the previous financial year (Q4FY24).

According to SpiceJet's exchange filing, the airline reported a standalone net profit of Rs 119 crore in Q4FY24 as against a net profit of Rs 16.9 crore for the January-March quarter of FY23 (Q4FY23).

Operationally, however, SpiceJet Q4FY24 revenue was Rs 1,571.2 crore, down from Rs 2,145 crore reported in the year-ago quarter.

"We announce a strong financial performance in Q4 FY2024, with net profit surging sixfold to Rs 119 crore compared to the same quarter last year. The results reflect our relentless efforts to enhance operational efficiency and our commitment to turning around the company's fortunes," SpiceJet Chairman and Managing Director, Ajay Singh, said in a statement.

 

"As we move forward, we are exploring opportunities to raise fresh funds to further bolster our growth plans and take advantage of the burgeoning demand in the Indian aviation market," Singh added.

The Ajay Singh-owned airline also disclosed financial results for the September quarter, and reported a net loss of Rs 300 crore for the quarter. In Q3FY23, the airline had reported a net profit of Rs 110 crore during the period.
That said, SpiceJet airline reported a 72.4 per cent year-on-year (Y-o-Y) reduction in its consolidated net loss to Rs 418.3 crore for FY24, amid ongoing cash crunch. This marks the sixth consecutive year the airline has posted a loss.
The budget airline was last in the green in 2017-18, when it posted a consolidated net profit of Rs 557.4 crore.
"Losses over the last few years have been primarily driven by adjustments on account of the implementation of Ind AS 116 (new accounting standard that came into force in 2019), adverse foreign exchange rates, operational disruption during Covid-19, followed by sub-optimal operations due to liquidity constraints faced by the Group," SpiceJet said in a statement.
On the bourses, shares of SpiceJet surged 7.7 per cent on Monday, ahead of the results. With today's rally, the stock has rallied 15 per cent in two days. By comparison, the BSE Sensex is up 0.4 per cent during the period.

SpiceJet shares had hit a record high of Rs 156.9 per share on June 3, 2019, and an all-time low of Rs 1 on September 3, 2001. The small-cap company's market-capitalisation (m-cap) stood at Rs 4,590.64 crore at 9:50 AM, and commands a price-to-earnings (P/E) multiple of (-)42,39x.

SpiceJet Ltd. is a low cost carrier (LCC) engaged in providing air transport services for carriage of passengers and cargo. It is powered by a fully integrated transportation network including air cargo ground transportation and warehousing facilities.

Meanwhile, the Delhi High Court, on July 09, initiated contempt proceedings against SpiceJet for its failure to fulfil the order of the Court requiring the airlines to hand over two Boeing aircrafts and three engines to TWC Aviation.