SpiceJet shares tank nearly 7% after Q3 net profit drops

Company's market valuation fell by Rs 260 crore to Rs 3,597 crore

Shares of SpiceJet on Tuesday tanked nearly seven per cent after the company reported a 24 per cent fall in net profit in three months ended December 2016.

The stock plunged 6.76 per cent to end at Rs 60 on BSE. During the day, it slumped 7.69 per cent to Rs 59.40.

On the BSE, 67.71 lakh shares of the company were traded during the day.

The company's market valuation fell by Rs 260.3 crore to Rs 3,596.70 crore.

Bogged down by demonetisation and higher fuel costs, SpiceJet on Monday reported a 24 per cent fall in net profit at Rs 181.1 crore in three months ended December 2016 even as the second largest low-cost carrier remained in the black for the eighth straight quarter.

The airline had posted a net profit of Rs 238.39 crore in the corresponding quarter a year ago.

The company said it could remain profitable despite a softening of demand due to demonetisation and rising fuel prices.

The airline reported operating revenue of Rs 1,642.4 crore as its seat load factor remained robust at 90.7 per cent, the highest in the industry.