SpiceJet Beats Estimates Despite 24% Drop In Profit
SpiceJet’s profit drops 25 percent, even as revenue increases 12.5 percent.
It’s turning out to be a quarter to forget for Indian aviation companies. After InterGlobe Aviation Ltd. and Jet Airways Ltd., low-cost carrier SpiceJet Ltd. reported a sharp drop in profit in the October-December period of financial year 2016-17.
Net profit declined 24.5 percent to Rs 181.1 crore from Rs 239.9 crore in the corresponding quarter last year, according to the company’s filing on the stock exchanges. The Ajay Singh-led company, however, managed to surpass the Rs 107.7 crore consensus estimate of analysts tracked by Bloomberg.
SpiceJet reported eight successive profitable quarter since its turnaround after December 2014. However, the profit for the December quarter were impacted by demonetisation and higher fuel prices.SpiceJet Media Statement
Revenue rose 12.5 percent to Rs 1,642.4 crore from Rs 1,460 crore in the year-ago period, largely in line with estimates.
Earnings before interest, tax, depreciation, amortisation and rental lease (EBITDAR) dropped 20.7 percent to Rs 417.7 crore. This was primarily due to higher jet fuel prices, which rose by 29.2 percent, and aircraft maintenance costs, which increased 44.9 percent.
Meanwhile, EBITDAR margin fell to 25.4 percent from 36.1 percent in the corresponding quarter of the previous year.
