Finance Update

Spicejet reports a 77% fall in Q3 net profit

SpiceJet Q3 profit dives 77% YoY to Rs.55 crore.

  • Net profit falls by 77% y-o-y to Rs.55 crore from Rs.240 crore.
  • Revenue rose by 20.2% y-o-y to Rs.2,487 crore from Rs.2,069 crore.
  • EBITDA fell by 62.7% y-o-y to Rs.113.2 crore from Rs.303.4.

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SpiceJet Q3 profit dives 77% YoY to Rs.55 crore.

Total income stood at Rs.2,530.8 crore as against Rs.2,096.1 crore in the same quarter last year.

SpiceJet reported a net profit of Rs.55.1 crore for the quarter ending December 31, 2018, defying the current market conditions, where other airlines are losing money.

The airline said that passenger yields increased by 8% that partially helped offset record high cost due to an increase of 34% in crude oil prices and 11% depreciation of the Indian Rupee against the US dollar. However, the airline’s profit during the quarter fell by 77% over the same period last fiscal, when the airline had registered profits of Rs 240 crore.

“The combined effect of these cost escalations was approximately Rs.329 crore. The Company also reversed some portion of its provisions on its FOREX obligations taken during the previous quarter for this financial year,” the airline said.

During the quarter, total income stood at Rs.2,530.8 crore as against Rs.2,096.1 crore in the same quarter last year. For the same comparative period, expenses were Rs.2,475.8 crore as against Rs.1,856.1 crore.

“Despite the huge cost escalation in ATF and exchange rate, SpiceJet has done remarkably well thanks to our superior revenue performance, tight control on other costs and the continued confidence our passengers have shown in the airline. With a strong improvement in the macro cost environment and the increasing induction of the fuel efficient MAX aircraft, the outlook looks stronger than it has over the past year,” SpiceJet CMD Ajay Singh was quoted in the media statement.

“With sector headwinds having subsided, we are bullish on our future prospects and will continue to invest aggressively in creating capacity in line with our forecasts. The new generation 737MAX aircraft with its cost efficiencies and increased revenue opportunities (due to superior payload performance) will become a substantial portion of our Boeing fleet further improving our margins. The increased seating capacity on the Bombardier Q400s will also result in improved margins,” the statement added.

SpiceJet has added 12 new planes – nine Boeing 737 MAX 8 aircraft and three Q400s – between October and December 2018 and now operates a fleet of 72 aircraft.

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