SpiceJet Shares Jump To One-Month High As Airline Turns Profitable
The stock rose as much as 7.35% in early trade to Rs 60 apiece on the BSE.
Shares of SpiceJet Ltd. soared over 7% on Tuesday to the highest level in over a month after the airline generated profit in the quarter ended March against a loss in both a year-ago and a quarter-ago period.
The airline announced its results for the quarter ended December and March on Monday and is yet to announce the results for the first quarter ended June.
In the March quarter, it posted a net profit of Rs 127 crore compared to loss of Rs 6.2 crore registered during the same period last year and a loss of Rs 298.7 crore in the December quarter, according to an exchange filing.
The profit was driven by other income of Rs 636.3 crore. During the quarter it also completed capital infusion aggregating to Rs 1,060 crore under a preferential issue.
The airline also signed a settlement agreement at $22.5 million with Export Development Canada to resolve $90.8 million in liabilities and settled liabilities aggregating to over $50 million with various lessors.
The company's notes to accounts stated a settlement agreement with EDC, wherein the external commercial borrowing amounting to Rs 755.5 crore inclusive of interest appearing in the books of accounts has been settled at Rs 187.3 crore and the resulting gain of Rs 568.2 crore has been recognised.
SpiceJet Q4 FY24 Earnings Highlights (Consolidated, YoY)
Revenue down 19% to Rs 1,738 crore versus Rs 2,145 crore.
Ebitdar down 83% to Rs 16.3 crore versus Rs 95 crore.
Ebitdar margin at 0.9% versus 4.4%.
Net profit at Rs 127 crore versus loss of Rs 6.2 crore.
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On the BSE, SpiceJet's stock rose as much as 7.35% in early trade to Rs 60 apiece, the highest level since May 28. It was trading 3.7% higher at Rs 57.98 per share, compared to a 0.1% decline in the benchmark Sensex at 9:53 a.m.
The share price has fallen 4% on a year-to-date basis but risen 96.82% in the last 12 months. The relative strength index was at 60.12.
Out of the four analysts tracking the company, two recommend 'hold', one has a 'buy' rating on the stock and another suggests 'sell,' according to Bloomberg data. The average of 12-month analyst price targets implies a potential upside of 30.9%.
