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Spicejet spurts after stellar Q3 numbers

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Capital Market
Last Updated : Feb 24 2023 | 4:04 PM IST

Spicejet surged 13.15% to Rs 40 after the company reported standalone net profit of Rs 106.82 crore in Q3 FY23, steeply higher than Rs 23.28 crore posted in Q3 FY21.

Total revenue from operations rose 2.7% YoY to Rs 2,261.13 crore during the quarter ended 31 December 2022.

EBITDAR (Earnings before interest, tax, depreciation, amortisation and rent) was Rs 591 crore in Q3 FY23 against loss of Rs 387 crore in Q2 FY23.

Net profit (excluding non-cash forex impact) was Rs 221 crore as compared to Rs 20 crore in Q3 FY22. Despite of a big jump in passenger traffic business continued to be impacted by high fuel prices and depreciating Rupee. Average aviation turbine fuel (ATF) price surged 48% YoY while currency depreciated 11%.

EBITDA stood at Rs 455 crore in Q3 FY23 against loss of Rs 414 crore in the preceeding quarter this year.

Air Transport Service revenue was Rs 2,202.01 crore (up 31% YoY) while that from Freighter & Logistics service was Rs 119.62 crore (down 79.5% YoY) during the period under review.

In Q3 FY23, available seat kilometers (ASKM) increased by 5% YoY while revenue per available seat-kilometer (RASK) increased by 27% YoY. Yield improvement of 21% resulted in increase of passenger revenue by 33% YoY.

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On operational parameters, SpiceJet had the highest passenger load factor amongst all airlines in the country. The average domestic load factor was 91% for the quarter. The airline launched 15 new routes and operated 254 charter flights utilizing over 40,000 seats in the quarter.

Ajay Singh, chairman and managing director of SpiceJet, said, We exceeded our operational targets and continued with our unmatched performance clocking the highest load factor for every single month in 2022. The profits 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 deleverage our balance sheet.

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.

SpiceJet is a low-budget air carrier. The airline operates a fleet of Boeing 737s, Q-400s & freighters and is the country's largest regional player operating 63 daily flights under UDAN or the Regional Connectivity Scheme. The airline also operates a dedicated air cargo service under the brand name SpiceXpress offering cargo connectivity across India and on international routes.

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First Published: Feb 24 2023 | 3:25 PM IST

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