SpiceJet Q3 Results: Reports Profit After Three Quarters On Other Income

SpiceJet Ltd. reported profit in the third quarter, aided by other income, after posting losses for three consecutive quarters.

The airline's consolidated net profit rose 160% year-on-year to Rs 110.5 crore in the quarter ended December, according to its exchange filing.

The Rs 505.5-crore of other income helped the no-frills carrier post a profit as the revenue from operations grew only 2% year-on-year.

It returned certain non-operating aircraft and negotiated waiver on lease rentals and maintenance, which led to gains in the other income.

The carrier's standalone net profit stood at Rs 107 crore in the third quarter, compared with a profit of Rs 23.3 crore over the same period last year.

High ATF prices and a depreciating rupee hurt the low-cost carrier's financial performance.

The foreign exchange loss stood at Rs 114 crore, compared with just Rs 4.7 crore loss over the same period last year.

• Revenue rises 2% to Rs 2,317 crore.

• Ebitdar declined 64% to Rs 90 crore.

• Ebitdar margin stood at 3.9% versus 11% last year.

The company has reported losses in 10 out of the last 12 quarters.

Much like the quarter under review, the only profitable quarter was October–December in the previous fiscal, when the festive season led to increased air travel.

The aviation sector was one of the worst hit by the Covid-19 pandemic, requiring first a nationwide lockdown and then local curbs to mitigate the spread of the virus.

However, India's air passenger traffic has recovered in the third quarter and climbed to a near three-year high in December, amid festive demand and year-end spike in travel. That led to passenger rush, resulting in overcrowding at major airports across the country.

SpiceJet's available seat-kilometers, an indicator of carrying capacity, increased 5% year-on-year over the quarter. The revenue per available seat-kilometer rose 27%.

The yield improvement of 21% led to a 33% jump in passenger revenue, the airline said.

Its cargo business, SpiceXpress, reported a net profit of Rs 12 crore and revenue of Rs 120 crore.

"The profit have been driven by a strong performance in both our passenger and cargo businesses. There are renewed signs of recovery and some very positive developments and restructuring initiatives in the immediate offing that would significantly strengthen and de-leverage our balance sheet,” Ajay Singh, chairman and managing director, said in a press release.

Air travel has "come roaring back touching newer heights and giving a glimpse of the huge potential of the Indian aviation market", he said.

Shares of SpiceJet ended 13% higher after the results were announced, as compared with a 0.3% fall in the Nifty 50.