SpiceJet Shares Surge Over 7 Per Cent Following MultiFold Profit Increase
SpiceJet on Monday logged a substantial rise in standalone profit, which jumped to Rs 119 crore in the January-March quarter of 2023-24, compared to Rs 16.85 crore in the same period the previous year
Shares of budget carrier SpiceJet surged by over 7 per cent in morning trade on Tuesday, following the company's announcement of a significant increase in standalone profit for the January-March quarter of the 2023-24 fiscal year. The stock rose by 7.35 per cent, reaching Rs 60 on the BSE.
On Monday, SpiceJet reported a substantial rise in standalone profit, which jumped to Rs 119 crore in the January-March quarter of 2023-24, compared to Rs 16.85 crore in the same period the previous year. However, the company's revenue from operations during this quarter saw a 20 per cent decline, dropping to Rs 1,719.37 crore from Rs 2,144.85 crore in the fourth quarter of the financial year ended March 31, 2023, according to a regulatory filing.
At 1 pm, shares of SpeiceJet were trading at Rs 58.73 apiece, rising 5.08 per cent on the BSE on Tuesday.
The airline's market cap stood at Rs 4,434.35 crore on the BSE.
Despite the quarterly profit, SpiceJet posted a full-year loss of Rs 409.43 crore for the fiscal year 2023-24, an improvement from the Rs 1,503 crore loss recorded in FY23.
In addition to its financial performance, SpiceJet also announced significant settlements during the fourth quarter of the last fiscal year. The airline signed a settlement agreement with Export Development Canada (EDC) at $22.5 million to resolve $90.8 million in liabilities and settled liabilities amounting to over $50 million with various lessors.
For the December quarter, SpiceJet reported a loss of Rs 301.45 crore, in contrast to a profit of Rs 106.82 crore in the corresponding period of the previous year.
"We are pleased to announce a strong financial performance in Q4 FY2024, with net profit surging sixfold to Rs 119 crore compared to the same quarter last year. The results reflect our relentless efforts to enhance operational efficiency and our commitment to turning around the company's fortunes," said SpiceJet Chairman and Managing Director Ajay Singh.
"As we move forward, we are exploring opportunities to raise fresh funds to further bolster our growth plans and take advantage of the burgeoning demand in the Indian aviation market," Singh added.
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