SpiceJet's Q3 to show sequential improvement; update on cargo business to be in focus

"Cargo operations, improving the scale of operations, cost initiatives and appreciating rupee will help narrow down losses QoQ," said Prabhudas Lilladher.

"We bake in Rs 80 crore MTM gain. Adjusted PAT (loss of Rs 479 crore) excludes Rs 140 crore compensation from Boeing."

Global financial firm HSBC expects SpiceJet to report a net loss of Rs 300 crore for the December quarter, including Rs 43.90 crore of mark-to-market forex gain.

HSBC said it expects an update on its cargo business.

"We would be keen to understand how the cargo business is doing now given the lockdown has been lifted and if the company has plans to expand its cargo business further," said HSBC.

"We would also be keen to understand if the company can manage a similar kind of profitability from its cargo business despite the rise in fuel prices and if there might be any change to its strategy towards the cargo business due to rising oil price (i.e., replace the older aircraft currently deployed in cargo business with the newer and more fuel-efficient aircraft)."

How costs are expected to evolve over the next few quarters, what percentage of employees are not paid full salaries yet and when might salary cost be more normalised, are among the points that will be in focus when the company announces its earnings.

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