Spicejet gains after settling employees PF dues worth Rs 160 cr

Spicejet rose 1.32% to Rs 58.55 after the company has successfully cleared all pending employee provident fund (PF) dues amounting to Rs 160.07 crore, spanning over two years, reaffirming its commitment to financial accountability.

Over the past three months, since raising Rs 3,000 crore through a Qualified Institutional Placement (QIP), the airline has cleared all pending statutory liabilities, including Tax Deducted at Source (TDS), Goods and Services Tax (GST), and employee salary dues.

With the airline now current on its statutory dues, it is poised to save significantly on interest payments.

In addition to clearing its statutory obligations, the company has resolved multiple outstanding disputes with aircraft lessors and other creditors, significantly improving its balance sheet.

 

Since October 2024, the company has been utilising its internal cash flows to meet its statutory obligations, including PF and TDS payments, reflecting the airlines improved financial health and operational discipline.

Ajay Singh, chairman and managing director, SpiceJet, said, We are pleased to announce the clearance of all pending employee PF dues. This marks a new chapter in SpiceJets journey. By clearing all pending statutory dues and settling disputes with lessors and creditors, we are demonstrating our unwavering commitment to operational excellence, financial prudence, and the welfare of our employees. With the successful implementation of our financial turnaround strategy, we are confident in our ability to continue delivering superior service to our customers and achieving sustainable growth.

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 multiple 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.

The low-cost air carriers standalone net profit declined 26.69% to Rs 149.96 crore on 15.3% fall in revenue from operations to Rs 1,695.52 crore in Q1 FY25 over Q1 FY24.

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