ADVERTISEMENT

SpiceJet Q1 - Recapitalisation Remains Key; ‘Logistics Platform’ Targeted For Monetisation: ICICI Securities

SpiceJet Q1 - Recapitalisation Remains Key; ‘Logistics Platform’ Targeted For Monetisation: ICICI Securities

A SpiceJet Ltd. aircraft stands at Terminal 3 of Indira Gandhi International Airport in New Delhi, India. (Photographer: T. Narayan/Bloomberg)
A SpiceJet Ltd. aircraft stands at Terminal 3 of Indira Gandhi International Airport in New Delhi, India. (Photographer: T. Narayan/Bloomberg)

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

ICICI Securities Report

SpiceJet Ltd. continues to maintain momentum in the cargo business with Q1 FY22 net profit of Rs 300 million for the ‘logistics platform’ (this semantic is being used by the company for the first time).

Recapitalisation remains the key trigger for the business.

As per a press release by the company, it is in the process of hiving off the logistics platform, SpiceXpress, which is aimed to unlock significant value for SpiceJet and its shareholders.

This will also allow SpiceXpress to raise capital to fuel its rapid growth.

The expected compensation from Boeing continues to be added every quarter at a run-rate of Rs 1.4 billion; however, with more delay, the chances of realisation of the cumulative amount becomes doubtful.

Click on the attachment to read the full report:

ICICI Securities SpiceJet Q1FY22 Results Update.pdf

DISCLAIMER

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 author entity 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.