You are here: Home » Markets » News
Business Standard

SpiceJet dips 2% after reporting Rs 593 crore loss in June quarter

In the past three months, SpiceJet has underperformed the market by gaining 4 per cent, against 16 per cent rally in the S&P BSE Sensex

Topics
SpiceJet stock | Buzzing stocks | Markets

SI Reporter  |  Mumbai 

Spicejet

Shares of SpiceJet dipped 2 per cent to Rs 52.40 on the BSE on Wednesday after the company reported a consolidated net loss of Rs 593 crore in the April-June quarter (Q1FY21), with air travel segment reporting loss of Rs 642 crore for the quarter. It had posted a net profit of Rs 261.7 crore in the same quarter of the previous year.

In the past three months, SpiceJet has underperformed the market by gaining 4 per cent, against 16 per cent rally in the S&P BSE Sensex.

The company’s operating revenue declined to Rs 515 crore for the reported quarter as against Rs 3,002 crore in the same quarter last year as flight operations remained suspended for most part of the quarter following the nationwide lockdown.

During the quarter, the company increased its focus on cargo as a result of which revenues from cargo increased by 144 per cent year on year (YoY) to Rs 166 crore while air transport service registered a degrowth of 88 per cent YoY to Rs 349 crore.

On the Ebitda (earnings before interest, taxes, depreciation, and amortization) front, loss was Rs 11 crore for the reported quarter as against profit of Rs 748 crore for the corresponding quarter last year. On an Ebitdar (earnings before interest, taxes, depreciation, amortization, and restructuring or rent costs) basis, the profit was Rs 13.5 crore for the reported quarter as against profit of Rs 812 crore for the same quarter last year.


The management said the present operating environment on account of Covid‐19 though does not reflect the true comparison of the current results with those of corresponding quarter last year.

“During the quarter the company maintained its 16 per cent market share with a load factor of 66 per cent despite the Covid-19 impact which resulted in 90 per cent year on year contraction in available seat kilometer or ASKM. The numbers were along expected lines as it was expected that the company would post a loss in Q1FY21 given sharp fall in air traffic,” said Jyoti Roy - DVP- Equity Strategist, Angel Broking.

“SpiceJet was in urgent need of capital infusion even prior to Covid and the present crisis has only accentuated the liquidity crunch. SpiceJet continues to aggressively cut costs, re-negotiate contract terms and defer payments. However, there are material uncertainties on its ability to continue deferring its obligations and unwind them making the risk reward unfavorable,” analysts at Centrum Broking said in report dated July 31.

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Wed, September 16 2020. 10:00 IST
RECOMMENDED FOR YOU
.