SpiceJet’s Revenue Rises For Seventh Straight Quarter, Tops Estimates
Spicejet Ltd.’s revenue rose for the seventh straight quarter, surpassing analyst estimates, due to a 93 percent passenger load factor for the quarter-ended June.
Standalone revenue of the budget airline rose nearly 23 percent to Rs 1,870 crore compared to the same quarter last year, according to the company’s exchange filing. A BloombergQuint poll had pegged the topline at Rs 1,788 crore.
Net profit rose 17.4 percent to Rs 175 crore on a year-on-year basis, in line with the estimated Rs 179 crore.
The strong performance was on account of a strong passenger load factor and increase in passenger yields, the latter growing by 9 percent during the quarter. Average load factor stood at 94.07, the company said in a statement.
Ten successive profitable quarters, a record aircraft order and exploring new growth avenues through the UDAN program - SpiceJet remains firmly on track for its long term growth strategy.Ajay Singh, Managing Director, SpiceJet
Earnings before interest, tax, depreciation and amortisation rose 18.7 percent to Rs 228.5 crore on a year-on-year basis. EBITDA margin, however, contracted to 12.2 percent from 12.7 percent in the same period due to rising costs.
Total expenses jumped 23 percent to Rs 1,714.2 crore on rising fuel expenses, employee benefit costs, airport charges, operating costs and maintenance costs.
The Maran Case
The budget airline is considering using cash to deposit money following the Delhi High Court’s order in the Maran case, and may therefore need to take a new bank facility, Chief Financial Officer Kiran Koteshwar told Bloomberg in an interview
SpiceJet has already factored in the outgo on its books, Koteshwar added.
The airline has been directed by the high court in July to deposit Rs 579 crore in a share transfer dispute with its former owner Kalanithi Maran. SpiceJet’s plea in the Supreme Court against the Delhi High Court’s order was rejected.