SpiceJet Q1 net profit up 104%, stock rises 16%

Budget passenger carrier SpiceJet on Wednesday reported a rise of 104.24 per cent in its net profit for the first quarter of 2016-17.

The company's Q1 net profit stood at Rs 149.02 crore from Rs 72.96 crore reported in the corresponding quarter of 2015-16.

"This quarter's results further demonstrate the impact of efforts that are being put into strengthening SpiceJet," Ajay Singh, Chairman and Managing Director, SpiceJet was quoted as saying in a statement.

"We remain focussed on growing responsibly in a growing but a challenging market."

This is the sixth consecutive profitable quarter for SpiceJet after the challenges faced by the company in December, 2014 and the change in management and control thereafter.

The airline's total income from operations for the quarter under review increased by 36.70 per cent to Rs 1,521.52 crore from Rs 1,113 crore earned in the corresponding period of 2015-16.

The company's total expenditure during Q1, 2016-17 too, rose by 33.11 per cent to Rs 1,374.04 crore from Rs 1,032.22 crore for the quarter ended June 30, 2015.

According to the company, profits for the quarter were adversely impacted by rupee depreciation, inflation and the presence of more expensive wet lease aircraft. However, profits outperformed capacity and revenue growth rates.

On an EBITDA (earnings before interest, taxes, depreciation, and amortisation) basis, SpiceJet reported a profit of Rs 215 crore at 14 per cent EBITDA margin.

On EBITDAR (earnings before interest, taxes, depreciation, amortisation, and restructuring or rent costs) basis, the company reported a profit of Rs 474 crore with a margin of 31 per cent.

The airline recorded a passenger load factor of 92.5 per cent in Q1, the highest in the industry.

"Passenger load factor has been in excess of 90% in every month since April 2015. Operating performance showed improvement with industry leading On Time Performance and low cancellations rates for SpiceJet flights," the statement said.

The company added that its board of directors appointed Anurag Bhargava and Harsha Vardhana Singh as independent directors.

At the BSE, the company's scrip rose 15.88 per cent to Rs 65.30 from its previous close of Rs 56.35.

The scrip touched a high of Rs 67.60 and a low of Rs 56 during the intra-day trade.