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SpiceJet soars after signing MoU with Boeing for planes

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gained 1.73% to Rs 126.70 at 10:00 on after the company and Boeing signed a memorandum of understanding for 40 737 MAX airplanes.

The company made the announcement after market hours yesterday, 19 June 2017.

Meanwhile, the S&P Sensex was up 19.90 points, or 0.06%, to 31,331.47. The S&P Mid-Cap index was up 54.90 points, or 0.37%, to 14,872.64.

On the BSE, 13.26 lakh shares were traded in the counter so far, compared with average daily volumes of 19.77 lakh shares in the past one quarter. The stock had hit a high of Rs 128.20 in intraday trade, which is also a record high for the stock. The stock had hit a low of Rs 126.50 so far during the day. The stock had hit a 52-week low of Rs 54.50 on 9 November 2016.

The stock has jumped 22.06% in twelve sessions to its ruling price of Rs 126.70, from a close of Rs 103.80 on 2 June 2017.

The stock had outperformed the market over the past one month till 19 June 2017, gaining 13.54% compared with 2.78% rise in the Sensex. The scrip had also outperformed the market in past one quarter, gaining 48.19% as against Sensex's 5.61% gains. The scrip had also outperformed the market in past one year, jumping 92.95% as against Sensex's 17.6% gains.

The mid-cap company has equity capital of Rs 599.45 crore. Face value per share is Rs 10.

said that the agreement, valued at approximately $4.74 billion at current list prices, is split evenly between 20 new orders for the 737 MAX 10 and conversions of 20 of the low-cost carrier's 737 MAX 8 airplanes of its current order to 737 MAX 10s. The order will be posted to the Boeing Orders & Deliveries website once finalized.

Ajay Singh, Chairman and Managing Director, said with the introduction of 737 MAXs next year, the company will be able to further expand the network, while keeping costs low for customers.

SpiceJet operates a fleet of 35 Next-Generation 737s and 19 Bombardier Q400s. The carrier plans to grow its operational fleet to 100 airplanes by 2020 and looks to expand regionally with the new 737 MAX family of airplanes. SpiceJet will take delivery of its first 737 MAX in 2018.

The 737 MAX 10 will be the most profitable single-aisle airplane, offering the lowest seat costs ever.

SpiceJet's net profit fell 61.4% to Rs 41.64 crore on 11.4% rise in net sales to Rs 1613.83 crore in Q4 March 2017 over Q4 March 2016.

SpiceJet is an affordable airline company. SpiceJet operates 364 average daily flights to 46 destinations, including 39 domestic and 7 international ones. The airline connects its network with a fleet of 35 Boeing 737NG and 19 Bombardier Q-400s.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, June 20 2017. 10:09 IST