SpiceJet tumbles after Q4 results

SpiceJet fell 8.49% to Rs 72.80 at 14:03 IST on BSE after the company's Q4 results announced after trading hours yesterday, 19 May 2016, failed to cheer investors.

Meanwhile, the BSE Sensex was up 52.68 points, or 0.21%, to 25,452.40 .

On BSE, so far 1.70 crore shares were traded in the counter, compared with an average volume of 79.36 lakh shares in the past one quarter. The stock hit a high of Rs 78.40 and a low of Rs 72 so far during the day. The stock hit a 52-week high of Rs 95.30 on 28 January 2016. The stock hit a 52-week low of Rs 17 on 3 June 2015. The stock had outperformed the market over the past one month till 19 May 2016, rising 9.65% compared with 1.61% decline in the Sensex. The scrip had also outperformed the market in past one quarter, rising 16.30% as against Sensex's 7.13% rise.

The mid-cap low-cost airliner has an equity capital of Rs 599.45 crore. Face value per share is Rs 10.

SpiceJet's net profit surged 225% to Rs 73.19 crore on 85.12% rise in net sales to Rs 1448.66 crore in Q4 March 2016 over Q4 March 2015.

Shares of SpiceJet tumbled after the company reported one-time expense of Rs 173 crore in Q4 March 2016 towards stabilising and improving the reliability of its fleet. Rising crude oil prices also concerned investors as it could cap future upside in the stock. Higher crude oil prices adversely affect aviation firms as jet fuel prices, which typically constitute about 50% of airlines' operating costs, are directly linked to international crude oil prices.

SpiceJet's operational revenue rose 86% to Rs 1475 crore in Q4 March 2016 over Q4 March 2015.

On an earnings before interest, taxes, depreciation and amortization (EBITDA) basis, SpiceJet's profit rose 82.50% to Rs 146 crore in Q4 March 2016 over Q4 March 2015.

On an earnings before interest, taxes, depreciation, amortization and engine rentals (EBITDAR) basis, the company's profit rose 100.51% to Rs 393 crore in Q4 March 2016 over Q4 March 2015.

Operating revenue per Available Seat Kilometre (ASKM) registered a growth of 21% in Q4 March 2016 over Q4 March 2015. Expenses (excluding the one-time expense) per ASKM declined 6%. Fuel cost declined by 25%, which is an impact of 8% on total cost in Q4 March 2016 over Q4 March 2015. Currency depreciation impacted cost negatively by 3%.

The company reported net profit of Rs 407.20 crore in the year ended March 2016 as against net loss of Rs 687.05 crore in the year ended March 2015. Net sales declined 2.94% to Rs 5020.40 crore in the year ended March 2016 over the year ended March 2015.

The increase in unit revenue were a combined result of higher load factors, tighter revenue management and a substantial increase in Ancillary revenue. Unit cost reduction was achieved through contract renegotiation, higher resource productivity, and restructuring of operations, but were adversely impacted by currency depreciation and legacy issues, the company said in a statement.

This is the fifth consecutive profitable quarter for SpiceJet since the challenges faced in December 2014. The airline has been recording load factors of over 90% consistently over the last 11 months which is the highest in the industry. The operations have stabilised with On Time Performance around 90% and cancellations rates being the lowest in the industry, the company added.

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