SpiceJet’s First Quarter Net Profit Rs.72 Crore
Mumbai: Budget passenger carrier SpiceJet on Tuesday reported a record first quarter net profit this fiscal at Rs.71.8 crore.
The airline had reported a net loss of Rs.124 crore in the corresponding period during the last fiscal.
“This is the second consecutive profitable quarter and I am proud of what we have achieved. But there is still a long way to go. I am confident that the best is still ahead of us,” SpiceJet chairman Ajay Singh said.
“We will continue to focus on growth and on getting operational reliability and on-time performance back to world class standards,” Singh said in a statement.
The low cost carrier (LCC) had announced profits for the fourth quarter of 2014-15, after seven consecutive quarters of losses.
The airline’s net profit during the fourth quarter of 2014-15 stood at Rs.22.5 crore, from a net loss of Rs.321.51 crore.
However, the company’s total income — which includes net sales and other operating income — fell by 34.09 percent to Rs.1,106.3 crore in the quarter under review. The total income for the first quarter of 2014-15 stood at Rs.1,678.58 crore.
The airline’s net margins stood at 6.5 percent with a revenue base of Rs.1,106.3 crore for the quarter ended June 30, 2015.
The company said its profits were slightly suppressed as it had to incur expenses on account of wet-leasing of aircraft.
Wet-leased deals include the services of pilots and crew which makes it more expensive than dry-leased ones.
The LCC had wet-leased a few aircraft to address the short-term capacity shortage and to rebuild its network.
The company said it will replace the wet-leased aircraft with traditional dry-leased ones in the coming months.
A weaker rupee relative to previous year also dented the company’s profits.
The budget passenger carrier further reported a positive EBITDA (earnings before interest, tax, depreciation and amortisation) at Rs.126.7 crore from a negative Rs.43.1 crore during the corresponding period of last fiscal.
The EBIDTA margins for the quarter under review stood at 11.5 percent
The airline’s load factor, a key indicator of its sales and utility, stood at 89.8 percent for the quarter — the load factor was also the highest in the industry.
The LCC pointed out that the load factor in the June-ended quarter reflects an increase of 14.8 percent growth over the same period last year.
The company’s total expenditure during the quarter under review declined by 42 percent at Rs.1,035.61 crore from Rs.1,782.94 crore during the quarter ended June 30, 2014.
Expenditure-wise, fuel cost which constitutes nearly 45-50 percent of the total operating cost fell by 53.59 percent at Rs.358.88 crore from Rs.773.31 crore in the corresponding previous quarter.
Aircraft rentals, which form another major cost element, decreased by 41.37 percent at Rs.160.80 crore from Rs.274.27 crore in the corresponding quarter of 2014.
The company experienced major financial turbulence late last year. The airline’s fleet size late last year stood at 55 before a financial crisis forced it to truncate it.
Currently, the fleet size stands at 34 comprising 18 Boeing, 2 Airbus and 14 Bombardier Q400s aircraft.
The LCC is the country’s second-largest budget airline that operates 250 daily flights to 41 destinations, including 34 Indian and 7 international.
The company’s scrip at the Bombay Stock Exchange (BSE) gained 5.77 percent or 1.45 points on Tuesday and stood at Rs.26.60 from its previous close of Rs.25.15 per equity share. (IANS)