Q1 Results: SpiceJet Posts Rs 38-Crore Loss In June Quarter
Budget carrier SpiceJet suffered a net loss of Rs 38.1 crore in the June quarter on higher fuel cost, weak rupee and a one-time provisioning of Rs 63.5 crore.
The Gurugram-based airline had reported a net profit of Rs 175.2 crore in the year-ago period, according to its regulatory filing.
Net income rose 20 percent to Rs 2,277.8 crore in the reporting quarter from Rs 1,886.3 crore a year ago.
SpiceJet is the second domestic carrier to have announced earnings for the June quarter so far. Earlier, low-cost carrier IndiGo reported a 97 percent erosion in net profit to Rs 27.8 crore from Rs 811.1 crore a year ago.
The third listed carrier, Jet Airways, deferred its June quarter earnings indefinitely amid liquidity crunch.
SpiceJet’s fuel bill rose to Rs 812.4 crore in the June quarter from Rs 534.3 crore in the same period last year.
The company has taken a provision of Rs 63.5 crore as an exceptional item on account of an arbitration award that cited interest payable of Rs 92.5 crore and interest receivable of Rs 29 crore, according to its release.
The airline has now fully provided for the maximum amount that may be payable under the arbitration award with this one-time provision, it said.
“SpiceJet has delivered yet another operational profitable quarter despite surging oil prices and a weak rupee. As we start inducting the new fuel-efficient B737 MAX and the Bombardier Q400, we will be able to significantly reduce our overall costs even as we aggressively expand our network both in India and overseas,” said Ajay Singh, chairman of SpiceJet.
Capacity during the reporting quarter increased 14 percent, while growth in passenger yields went up by 4 percent, the company said. The airline also achieved a record domestic load factor of 94.5 percent in April-June, it said.
The airline’s stocks today ended 0.3 percent lower at Rs 89.10 apiece on the BSE compared with a 0.6 percent rise in the benchmark Sensex.