SpiceJet Gains 15% As Net Profit More Than Fivefolds To Rs 107 Crore In Q3

After the company's standalone net profit increased five-fold to Rs 107 crore in the December quarter, SpiceJet's shares increased by 15% to Rs 40.75 on the BSE on Friday (Q3FY23). In the previous quarter, it had reported a profit of Rs. 23.28 crore (Q3FY22). A robust performance in both the cargo and passenger businesses has been the primary driver of earnings.

Compared to the same quarter last year, the reported quarter's total revenue was $2,794 crore, up from $2,679 crore. Prior-quarter losses of Rs 387 crore were replaced by earnings before interest, taxes, depreciation,  amortization, and restructuring or rent costs (Ebitdar), which were at Rs 591 crore (Q2FY23).

Operating revenue climbed by 19% QoQ to Rs 2,315 crore as the company maintained its solid performance in the passenger business with the highest domestic load factor of 91%. In the third quarter, the airline ran 254 charter flights and launched 15 new routes.

"Despite a big jump in passenger traffic, business has continued to be impacted by high fuel prices and depreciating Rupee. There are renewed signs of recovery and some very positive developments and restructuring initiatives in the immediate offing that would significantly strengthen and deleverage the company’s balance sheet", The management stated.

Ajay Singh, Chairman and Managing Director of SpiceJet, stated that “Air travel has come roaring back touching newer heights and giving a glimpse of the huge potential of the Indian aviation market and we look forward to a robust and exciting 2023,” 

The largest regional airline in India, SpiceJet, has a fleet of Boeing 737s, Q-400s, and freighters and offers numerous daily flights under UDAN or the Regional Connectivity Scheme. The most spacious economy class seating in India, SpiceMax, is available on the majority of the airline's fleet.

The airline also has a specialized air cargo service called SpiceXpress, which provides secure, timely, effective, and seamless freight connections both within India and on international routes.

SpiceJet was trading 12% higher on the BSE at Rs 39.60 at 3:02 PM. The S&P BSE Sensex, in contrast, was down 0.24 percent at 59,460. The counter's typical trading volumes increased more than thrice. 18.7 million equity shares total have been traded on the NSE and BSE thus far.