Spice Jet posts highest quarterly profit

For the quarter, Spice Jet posted a net profit of Rs 238.39 crore as compared to a loss of Rs 275.02 crore in the corresponding period last quarter

SpiceJet, the country’s second largest low cost airline, reported its highest quarterly profit for the October-December period, on the back of  low fuel prices. This is a fourth straight profitable quarter for SpiceJet.

The airline saw a change of guard after it had landed in financial trouble, leading to grounding of flights. For the quarter, the net profit was Rs 238 crore, compared to a loss of Rs 275 crore in the corresponding one a year ago. Total revenue went up 11.3 per cent to Rs 1,460 crore against Rs 1,311 crore in the same period last year.

Expenses came down sharply, with fuel cost at Rs 366.6 crore, against Rs 562.4 crore, a decline of 34 per cent. Total expenses came down by 21.8 per cent to Rs 1,211 crore against Rs 1,550 crore.

SpiceJet increased its unit revenue by 14 per cent through a consistent rise in load factor, on lower fares and promotion offers. In the December quarter, it reported one of 91.6 per cent, highest in the sector and eight per cent higher than in the same period a year before. Earnings before interest, tax and depreciation were Rs 75 crore, against a loss of Rs 239 crore in the same period of the previous year

“SpiceJet was back to near-normal operations this quarter. While the margins remain slightly depressed due to wet-lease operations, the Chennai floods and exchange losses, we are happy with the progress so far,” said Ajay Singh, chairman and managing director.  He said the new management was working to reduce legacy cost and raising efficiency.

At the Ebitda (earnings before interest, taxes, depreciation and amortisation) level, SpiceJet reported a profit of Rs 292 crore against a loss of Rs 195 crore in the same quarter last year, the airline said. On an Ebitdar (earnings before interest, tax, depreciation, amortisation and rentals) basis, the profit was Rs 520 crore against one of Rs 20.1 crore in the same quarter last year, it said.

The scrip closed at Rs 70.85, down five per cent, about the same fall as in the benchmark index.