SpiceJet Q1 results: Airline flies back into black with net profit of Rs 197.5 crore

The low-cost carrier had reported a profit of Rs 110 crore in the third quarter of FY23, a loss of Rs 485 crore in the quarter ended March 2021-22, and a loss of Rs 789 crore in the June quarter of FY23.

SpiceJet delayed announcing the results of the fourth quarter of 2022-23 as a key member of its audit committee was ill.

This is the second time in a row that the airline delayed its fourth-quarter results. The Q4FY22 result was delayed due to a ransomware attack.

Cash infusion

The total revenue from operations for the January-March 2023 quarter came in at Rs 2,145 crore, higher than Rs 1,870.5 crore reported in the year-ago quarter.

The revenue for the Q1FY24 came in at Rs 2,003.5, 18.5 percent lower from Rs 2,457 crore in the same period a year ago.

"I firmly believe in the potential of our airline, and I am pleased to have contributed to its growth by infusing INR 500 Crore into the Company. This infusion will help bolster our efforts in reviving our grounded planes, for which we have been working tirelessly, strengthening our fleet and expanding our cargo operations," chairman and managing director Ajay Singh said in a press release.

SpiceJet was originally going to report its Q4FY2023 and Q1FY2024 results on August 11 but deferred the release of the financial results till August 14, a regulatory filing by the private carrier stated.

The airline said that its passenger revenue per available seat-kilometer (RASK) rose by 26 percent in April-June from the year-ago quarter due to an increase in yield by 22 percent on year and a 4 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 Q4FY23.

The airline did not share its available seat miles (ASKM) for the last two quarters.

SpiceJet's net loss for the quarter ended March 2023 would have been even higher if not for a foreign exchange gain of Rs 61.1 crore during the quarter. Similarly, its net profit in the June quarter would have been slightly higher if not for a foreign exchange loss of Rs 3.56 crore.

The airline has incurred an exceptional adjustment of Rs 263.2 crore on account of a settlement with Boeing for the quarter ended June 30, 2023, which was significantly higher than the Rs 17.14 crore received in April-June 2022.

The settlement with Boeing was a significant event during the quarter. As expected, the company received cash and non‐cash accommodations in excess of the amounts due to lessors during the period of grounding of MAX aircraft, SpiceJet said.

In the January-March 2023 period, the exception on account of a settlement with Boeing fell to Rs 353.5 crore when compared to the 505.5 crore received in the same period a year ago.

The airlines’ earnings before interest, taxes, depreciation and amortisation (EBITDA) came in at Rs 525 crore for the quarter ended June 2023, when compared to an operating loss of Rs 393 crore in the June quarter last year.

The earnings before interest, taxes, depreciation, amortisation and rent (EBITDAR) also came in at Rs 645 crore in Apr-Jun, when compared to an EBITDAR loss of Rs 349 crore in the same period a year ago.

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

"In terms of operational parameters, SpiceJet had the highest passenger load factor amongst all airlines in the country. The average domestic load factor was 92% for the March 2023 quarter and 88% for FY2023. SpiceJet had the highest load factor of 90% in Q1FY2024.," the airline said.

Revival plan

Its employee costs in Q1FY24 fell slightly to Rs 213.5 crore when compared to Rs 218.8 crore a year ago. The airline's employee cost during Q4FY23 rose to Rs 221.85 crore when compared to Rs 197.7 crore for the same period a year ago.

The airline in May announced that it would hike the salary of its captains to Rs 7.5 lakh per month for flying 75 hours. The airline had also announced its plans to revive 25 grounded aircraft.

SpiceJet said in a press release that Rs 400 crore for the revival of its aircraft will be drawn from the government’s Emergency Credit Line Guarantee Scheme (ECLGS) and better cash accruals.

In July, SpiceJet's promoter Ajay Singh had said that he will infuse Rs 500 crore into the loss-incurring carrier, in lieu of fresh equity shares or convertible instruments, or both.

Last week, Sun Group chairman Kalanithi Maran filed an application in the Delhi High Court and has sought for attachment of 50 percent of SpiceJet's  daily revenues towards payment of Rs. 393 crore that the low cost airline owes him.