SpiceJet shares up ahead of Q3 results

Shares inched up as high as 6.7% at Rs 45.9 in early trading session before coming down

Shares of SpiceJet are trading 1.5% up ahead of its December quarter's results today. On the Bombay Stock Exchange, stocks of Kalanithi Maran-owned airline inched up as high as 6.7% at Rs 45.90 in the early trading session on Monday. But the strong rally later fizzled out. But it is managing to remain in positive territory so far.

The low-cost airline, which experts say is best placed to attract foreign direct investment (FDI), has been making headlines over the last few weeks about its likely stake sale to Qatar Airways. Meanwhile, the counter had hit 52-week high of close to Rs 51 in later part of the previous year.

 

The current financial year, 2012-13, had begun on a positive note for SpiceJet as it reported net profits of Rs 56 crore in April-June quarter against a year-back loss of Rs 72 crore. In the following quarter (July-September), though it slipped in the red with a loss of Rs 163 crore, but it was less than its corresponding loss of Rs 240 crore in the previous year.

Last week, in its offering, the airline cut the fares by 50% for selective domestic routes from 1 February to 30 April with its limited booking period. During this, SpiceJet managed to book five times more seats than it normally does in a day.

According to a report from Motilal Oswal, SpiceJet's de-risking initiatives are bearing fruit, which is reflected in the 31% drop in net losses in 2QFY13. It further added that the airline is poised for a turnaround by 2013-14.