SpiceJet Q1 results: : Airline stays profitable for 2 quarters in a row; Q1 net profit at Rs 158.6 crore

SpiceJet posts quarterly results

SpiceJet Ltd stayed in the black in the first quarter of 2024-25 with a net profit of Rs 158.6 crore for the April-June period. The profit, however, was 19.7 percent lower than the Rs 197.53 crore reported in the year-ago period, the airlines said on August 14.

Its revenue came in at Rs 1,708.24 crore, down 14.7 percent on year from Rs 2,003.5 crore in the year-ago quarter as the airline decided to reduce the scale of its operations.

As part of the ongoing summer schedule for 2024, which starts on March 31 and ends on October 26, SpiceJet has indicated that it will operate 26 percent fewer weekly flights.

Spicejet’s Q1 FY25 earnings before interest, taxes, depreciation and amortisation (EBITDA) came in at Rs 401 crore, compared to Rs 525 crore in the same quarter a year ago.

The earnings before interest, taxes, depreciation, amortisation and rent (EBITDAR) also came in at Rs 650 crore for the April-June quarter, when compared to an EBITDAR profit of Rs 645 crore in the same period a year ago.

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

"The airline continued to lead the industry with the highest domestic load factor of 91%, reinforcing its strong market position and operational excellence," it said, adding, "We are pleased to report a profit of INR 150 Crore for Q1 FY 2024-25, which underscores our determination to navigate through uncertainties and is a testament to the hard work and dedication of our team."

The Gurugram-based airline reported losses in the second and third quarter of 2023-24, and has been taken to court by multiple lessors over unpaid leases. The airline till last week had also delayed the June salaries to a section of its employees, citing "pressing operational financial commitments" and the Chhatrapati Shivaji Maharaj International Airport (CSMIA) in Mumbai had earlier this week even issued a passenger advisory stating that operations stating that effective midnight on 13 August 2024, would be temporarily disrupted.

The airline reported a profit despite a rise in Aviation Turbine Fuel (ATF) seen during April-June 2024. However, the airline's Aviation turbine fuel cost fell 7.6 percent when compared on year during the quarter as the airline operated fewer flights during Q1FY25 when compared to Q1FY24.

ATF prices during April-June rose to by around 2.6-6 percent in April-June 2024 when compared to the same quarter last year. ATF prices in June 2024 stood at Rs 94,969.01 per Kilo Litre compared to Rs 89,303.09 per Kilo Litre in June 2023.

The low-cost carrier had 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.

SpiceJet has declared its results on time for the first time after a year. The results for Q2, Q3 and Q4 for 2023-24 were delayed with the last two quarters and full-year reporting being clubbed and declared in July.

Cash infusion

Ajay Singh, promoter of SpiceJet, is likely to dilute his shareholding in the cash-strapped airline by more than 10 percent stake in an effort to raise about Rs 3,000 crore news reports said on August 14.

The company plans to raise the fresh capital by issuing new shares to investors, expanding its capital base. Singh, along with his family, holds a 47.8 percent stake in the budget carrier, of which 38.8 percent is pledged with lenders.

The airline has appointed ICICI Securities and JM Financial to manage the fundraising process.

"The upcoming Rs 3,000 Crore fundraise through QIP will be instrumental in reinforcing our financial foundation and positioning SpiceJet for sustained success," Ajay Singh, Chairman and Managing Director of SpiceJet said in a statement on August 14.

Last month, the board of the budget carrier on approved raising up to Rs 3,000 crore through a qualified institutional placement (QIP). While the airline had earlier announced plans to raise about Rs 2,250 crore from a group of 64 investors, it could only raise Rs 1,060 crore, as one of the primary investors eventually backed out.

Meanwhile, in a major blow to struggling SpiceJet, Delhi High Court on August 14 asked the domestic carrier to ground three engines leased out by two French firms- Team France 01 SAS and Sunbird France 02 SAS-by Friday after the airline failed to make rental payments.

The court also asked the low-cost airline to return these engines within 15 days and to make arrangement for inspection.

Earlier this week, two engine lessors pursuing SpiceJet over unpaid leases have rejected an offer by Ajay Singh to pledge personal shares equivalent to $2.5 million towards the discharge of the airline's liability.

This follows the HC, last week, saying it would only extend the payment deadline if SpiceJet's directors were willing to provide personal undertakings.

Last year, the lessors told the court that SpiceJet had not paid its bills for two years and, at the time, owed $ 12.9 million.

Result Delays

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.

Shares of SpiceJet ended August 14 down 2.5 percent at Rs 55.03 on BSE.