ICICI Securities: SpiceJet  - Awaiting Business Recovery
A Bombardier Inc. Q400 aircraft operated by SpiceJet Ltd. taxies after landing at Indira Gandhi International Airport in Delhi, India. (Photographer: Anindito Mukherjee/Bloomberg)

ICICI Securities: SpiceJet - Awaiting Business Recovery

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Securities Report

SpiceJet Ltd. faces a working capital problem as operations remain affected by Covid-19 while operational dues keep mounting, especially from lessors.

However, a distinction must be made between financial creditors and operational creditors as SpiceJet can work with the latter for restructured payment tenures as most airlines are facing similar challenges due to Covid.

However, restructuring will lead to higher liability on the books and an increasing cost gradient ex-fuel.

While Q1 FY21 is definitely the most hit quarter, prolonged Covid impact will continue to burden the balance sheet.

Click on the attachment to read the full report:

ICICI Securities SpiceJet Q1FY21 Result Update.pdf


This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.