SpiceJet back in black after 7 quarters, reports Rs 42.5-cr Q3 net profit

SpiceJet posted a net profit of Rs 42.5 crore for the December  quarter of FY22 on Tuesday. In the same quarter a year ago, the airline had reported a loss of Rs 66.7 crore.

The company's profit in Q3FY22 was its first in seven quarters.

The company’s revenue for the October-December 2021 period grew 33.8 per cent on a year-on-year (YoY) basis to Rs 2,263 crore, against Rs 1,692 crore in the same quarter last financial year.

The stock closed at Rs 64 on the BSE on Tuesday, after surging 8.02 per cent. The showing was boosted by a gain of Rs 57.9 crore as other income due to compensation from aircraft manufacturer Boeing for 737 MAX.

Ajay Singh, chairman and managing director, SpiceJet, said the airline's profit in Q3 was driven by excellent logistics operations, rebound in passenger traffic, and various accommodations from aircraft manufacturers and lessors. “The passenger industry witnessed the much-needed turnaround in the third quarter as Covid-19 cases ebbed in the first half of the quarter, travel picked up significantly, and there was finally hope that the worst was behind us. However, that changed by the second half of December as Omicron halted that recovery," he said.

The Ebitda slipped 52.4 per cent to Rs 116.4 crore. The year-ago period the year-ago period was recorded at Rs 244.3 crore (YoY). The Ebitda margin in the quarter under review stood at 5.1 per cent, against 14.4 percent in the same quarter last fiscal.

The low-cost carrier, which is going through turbulent times, was scheduled to announce the financial results for the quarter on Monday. It had postponed its scheduled meeting on Tuesday saying the company's audit committee meeting for approval of December quarter results was inconclusive due to paucity of time.

It said that while there is uncertainty in the revenue operation in the short-term which is expected to normalise in the long-term. While passenger business was suspended due to very low demand during the lockdown period and/or restricted operation period, it earned a profit of Rs 21.5 crore from its cargo business.