SpiceJet Q4 results: Airline flies back into black with net profit of Rs 119.6 cr

SpiceJet posts quarterly results

After reporting losses in the second and third quarter of 2023-24, low-cost carrier SpiceJet flew back into the black in the fourth quarter of 2023-24, as the cash-strapped airline announced the earnings for two quarters together on July 15.

The Gurugram-based airline reported a net loss of Rs 300 crore for the September quarter of FY24 and a net profit of Rs 119.6 crore for the January-March quarter of 2023-24.

In 2022-23, the airline had reported a net profit of Rs 110 crore for the September quarter of FY23 and a net profit of Rs 16.9 crore for the January-March quarter.

The total revenue from operations for the January-March 2024 quarter came in at Rs 1,571.2 crore, lower than Rs 2,145 crore reported in the year-ago quarter.

The revenue for the Q3FY24 came in at Rs 1,756.6 crore, lower from Rs 2,316.8 crore in the same period a year ago.

A fall in Aviation Turbine Fuel (ATF) price, seen during October-March 2024, directly contributed to SpiceJet reporting a profit during the March quarter. The airline's aviation turbine fuel cost halved when compared on year during the quarter.

ATF prices during October-March fell to around Rs 1,01,396.54 per Kilo Litre in March 2024 from Rs 1,18,199.17 per Kilo Litre from October 2023.

When compared year-on-year, ATF prices in March 2024 were 5.9 percent lower than Rs 1,07,750.27 per Kilo Litre in March 2023. Similarly, jet fuel was 2.3 percent cheaper in October 2023 when compared to Rs 1,21,041.44/kl in the same period in 2022.

SpiceJet carried 21.01 lakh passenger in the January-March quarter of FY24, 19.2 percent lower than the 25.99 lakh passengers carried in the same period last year.

Similarly, in the October-December quarter of FY24 the airline carried 21.84 lakh passengers 18.2 percent lower than the 26.68 lakh passengers carried in the same quarter in FY23.

"We are pleased to announce a strong financial performance in Q4 FY2024, with net profit surging sixfold to Rs 119 crore compared to the same quarter last year. The results reflect our relentless efforts to enhance operational efficiency and our commitment to turning around the company's fortunes," chairman and managing director Ajay Singh said in a press release.

The airline said that its passenger revenue per available seat-kilometer (RASK) rose by 8 percent in 2023-24 from the year-ago quarter due to an increase in yield by 7 percent on year and a 1 percent on year rise in load factor during the quarter, SpiceJet said in a statement.

The airline did not share details for its RASK and yield for Q4FY24 and Q3FY24.

SpiceJet's net profit for the quarter ended March 2024 would have been even higher if not for a foreign exchange loss of Rs 17.5 crore during the quarter. Similarly, its net loss in the December 2023 quarter would have been slightly lower if not for a foreign exchange loss of Rs 26.8 crore.

The airlines’ earnings before interest, taxes, depreciation and amortisation (EBITDA) came in at Rs 386 crore for the quarter ended March 2024, when compared to an operating profit of Rs 344 crore in the same quarter last year.

The earnings before interest, taxes, depreciation, amortisation and rent (EBITDAR) also came in at Rs 616 crore in Jan-Mar, when compared to an EBITDAR profit of Rs 515 crore in the same period a year ago.

SpiceJet said it has the highest passenger load factor among all airlines in the country.

SpiceJet's employee costs in Q4FY24 fell slightly to Rs 181.6 crore when compared to Rs 212.4 crore a year ago. The airline's employee cost during Q3FY24 also fell to Rs 191.1 crore when compared to Rs 217.8 crore for the same period a year ago.

In February 2024, SpiceJet had announced that it is set to reduce its workforce by 1,400 employees, constituting nearly 15 percent of its total staff, as part of cost-cutting measures aimed at sustaining investor interest amidst ongoing financial challenges.

Revival

The airline said that it "continues to implement various measures such as return to service of its grounded fleet enhancing customer experience, improving selling and distribution, revenue management, fleet rationalization, optimizing aircraft utilization, redeployment of capacity in key focus markets, management and employee compensation revision, renegotiation of contracts and other costs control measures, to help the company establish consistent profitable operations and cash flows in the future,"

SpiceJet said that in 2022-23 it received funds amounting to Rs 449.9 crore under the central government's Emergency Credit Line Guarantee Scheme (ECLGS). In 2023-24 SpiceJet received an additional Rs 541.3 crore under the ECLGS.

Apart from the above SpiceJet has also issued fresh equity shares and equity warrants to the promoter group for value aggregating to Rs 494 crore and also issued equity shares to one of the large lessor against some of its outstanding dues.

SpiceJet has also issued warrants on preferential basis amounting to Rs 1,060 crore and is also in discussion with potential investors for raising additional funds.

Result Delays

SpiceJet delayed announcing the results of its third and fourth quarter of 2023-24, but did not publically announce why it had done so.

This is the third time in a row that the airline delayed its fourth-quarter results. The Q4FY23 result were delayed as a key member of its audit committee was ill and its Q4FY22 result was delayed due to a ransomware attack.

According to the norms prescribed by the Securities and Exchange Board of India, the periodic filings, reports, statements, documents and information reports should contain information that allows investors to track the performance of a listed entity over regular intervals and provides them sufficient information to help assess its current status.

A listed company must submit its quarterly and year-to-date standalone financial results to the stock exchanges within 45 days of the end of each quarter, failing which it can be subjected to a penalty. SpiceJet has paid penalties in the past due to non-compliance with the SEBI (Listing Obligations and Disclosure Obligations) Regulations, 2015.

According to SpiceJet’s annual report for 2022-23, it paid a penalty of Rs 5,900 for a one-day delay in filing the unaudited financial results for the quarter ended December 31, 2021, and Rs 59,000 for a 10-day delay in submitting the unaudited financial results for the quarter ended December 31, 2022.

It was fined Rs 2,71,400 by Sebi for a delay of 93 days in submission of audited financial results for the year ended March 31, 2022, and was asked to pay Rs 88,500 for a 16-day delay in submission of unaudited financial results for the quarter ended June 30, 2022.