SpiceJet stock flies 6% after Plutus Wealth Management buys stake
SpiceJet share price jumped 5.80 per cent at Rs 67.40 per share on the BSE in Tuesday's early morning trade
 "SpiceJet stock flies 6% after Plutus Wealth Management buys stake")
SpiceJet share price jumped 5.80 per cent at Rs 67.40 per share on the BSE in Tuesday’s early morning trade. SpiceJet stock price surged after the Plutus Wealth Management acquired 8.5 million shares of SpiceJet, representing a 0.66 per cent stake via bulk deal on BSE.
Plutus Wealth Management, an Ahmedabad based stock broker on Monday bought the stake for around Rs 51 crore at an average price of Rs 59.95 per share.
Apart from this the stock price was also pushed by the recent price cut of Rs 5,883 per kiloliter which offers significant relief to domestic airlines facing rising operational costs. The new ATF prices effective from today October 1, 2024 are set at Rs 87,597.22 per kiloliter in Delhi and Rs 81,866.13 per kiloliter in Mumbai. For international operations, the revised prices are $795.27 per kiloliter in Delhi and $794.57 in Mumbai.
This adjustment by oil marketing companies (OMCs) is expected to support the aviation sector, which has been under pressure from fluctuating fuel costs.
SpiceJet is facing a multitude of financial challenges, including over Rs 220 crore in unpaid tax deducted at source (TDS) and Rs 135.3 crore in provident fund (PF) dues from April 2020 to August 2023. The airline has also defaulted on lease payments for its aircraft, resulting in lessors taking legal action. As of March 2024, SpiceJet reported a negative cash flow of Rs 613 crore from operations, alongside a declining market share.
Budget carrier SpiceJet reported a consolidated net profit of Rs 158 crore for the first quarter ending June 2024, reflecting a 20 per cent decrease from Rs 198 crore in the same quarter last year.
Revenue from operations also declined by 15 per cent year-on-year, dropping to Rs 1,708 crore from Rs 2,003 crore. However, on a sequential basis, the net profit after tax increased by 24 per cent, rising from Rs 127 crore in the previous March quarter.
SpiceJet shares have gained 10.59 per cent year to date against BSE Sensex rise of 16.4 per cent, while in the last one year the stock price has jumped 86 per cent compared with Sensex’s rise of 27.8 per cent.
At 10:51 AM, Cyient DLM’s stock price rose 5.29 per cent to Rs 67.07 per share on the BSE. By comparison, the BSE’s Sensex was up 0.14 per cent at 84,178.06 level.