Spicejet posts profit, explores ways to raise funds

Closing the second quarter with a profit of Rs.23.77 crore on a revenue of around Rs.1,040 crore, low-cost airline Spicejet on Thursday said it was evaluating means of raising funds, including strategic funds.

In a regulatory filing with BSE, the company said it has posted a net profit of Rs.23.77 crore for the quarter ended September 30, 2015, as against a net loss of Rs.310.44 crore for the quarter ended September 30, 2014.

According to Spicejet, the total income from operations came down to around Rs.1,040 crore during the second quarter of the current fiscal as compared to Rs.1,449.93 crore for comparable quarter of the previous fiscal.

The company's accumulated losses against shareholders' fund stood at Rs.3,115.18 crore as on September 30, 2015.

Spicejet's total liabilities exceed its total assets by around Rs.1,118.57 crore at the end of second quarter.

According to the company, it was evaluating and exploring various options for raising funds for operations, including options for strategic funds.

"Our focus this quarter clearly was to ensure that we remain cash positive in a traditionally weak quarter, which we ensured," chief financial officer Kiran Koteshwar said in a company statement.

"We will continue to add capacity to take advantage of the strong growth in the sector, and we will work on measures to de-risk the business model, some of which is evident in a superior ancillary revenue performance," he added.

"I am confident that our performance will get better as we continue to focus on revenue maximisation, cost reduction and on getting operational reliability and ontime performance back to world-class standards," said Spicejet chairman and managing director Ajay Singh.