SpiceJet falls after weak Q3 result

SpiceJet fell 2% to Rs 19.65 at 11:21 IST on BSE after the company reported a net loss of Rs 275.03 crore in Q3 December 2014, higher than net loss of Rs 172.80 crore in Q3 December 2013.

The result was announced after market hours yesterday, 12 February 2015.

Meanwhile, the S&P BSE Sensex was up 87.02 points or 0.3% at 28,892.12

On BSE, so far 18.09 lakh shares were traded in the counter as against average daily volume of 1.22 crore shares in the past one quarter.

The stock hit a high of Rs 19.95 and a low of Rs 19.25 so far during the day. The stock had hit a 52-week high of Rs 24.10 on 20 January 2015. The stock had hit a 52-week low of Rs 11.10 on 13 August 2014.

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

SpiceJet said that excluding one-off and exceptional costs of Rs 295 crore that included MR write-offs, unproductive lease rentals, and provisions for impact of fleet reductions and early contract terminations, the company would have achieved net profit of Rs 20 crore in Q3 December 2014. SpiceJet's total income fell 27.3% to Rs 1322.54 crore in Q3 December 2014 over Q3 December 2013.

EBITDA (earnings before interest, taxation, depreciation, and amortization) was negative Rs 195 crore in Q3 December 2014.

Kiran Koteshwar, Chief Financial Officer of SpiceJet said that with imminent recapitalization, the company's focus going forward will be on re-negotiating contracts and settling outstandings, which are together expected to bring down costs considerably.

Sanjiv Kapoor, SpiceJet's Chief Operating Officer said that the timing of the company's fleet reductions was unfortunate as it severely impacted the company's high season and more than negated the positive impact of declining fuel prices. However the worst is behind Spicejet now. Operations are now back to normal, the company is in the process of changing hands and being imminently re-capitalized, staff morale is high, customer confidence is rapidly returning as seen in daily bookings and in the response to our sales and promos, and the fleet is expected to grow again in time for the Summer schedule, Kapoor added.

SpiceJet is India's second largest airline by domestic passenger share.

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