SpiceJet shares settle marginally lower

SpiceJet | CMP: Rs 41.55 | The scrip rose over 8 percent after the finance ministry modified the Emergency Credit Line Guarantee Scheme (ECLGS) by raising the loan limit to Rs 1,500 crore from Rs 400 crore to help the aviation industry. As per the modified ECLGS 3.0, an airline would be eligible for "100 per cent of their fund based or non-fund-based loan outstanding as on the reference dates or Rs 1,500 crore, whichever is lower; and of the above, Rs 500 crore shall be considered, based on equity contribution by the owners".

Shares of SpiceJet on Tuesday recovered most of the early lost ground and ended marginally lower.

In morning trade, the stock fell over 4 per cent after the firm reported widening of net loss to Rs 837.8 crore in the three months ended September. The stock after a weak beginning declined 4.24 per cent to Rs 37.20 during the day on the BSE.

It later settled at Rs 38.75 apiece, a marginal dip of 0.26 per cent. In volume terms, 3.49 lakh shares of the firm were traded during the day on the BSE.

On Monday, SpiceJet had reported widening of net loss to Rs 837.8 crore in the three months ended September, as record fuel prices and depreciating rupee caused turbulence for the budget carrier.

Excluding the forex loss, the airline’s net loss stood at Rs 577.7 crore in the latest quarter under review. In the year-ago period, SpiceJet posted a net loss of Rs 561.7 crore.

During that period, including a forex gain, the figure was Rs 568.7 crore, according to a release. The airline said business in the second quarter of the current fiscal was ”hit by record-high fuel prices, depreciating rupee in the traditionally weak quarter”.

”Total revenue for the reported quarter was Rs 2,104.7 crore as against Rs 1,538.7 crore in the same quarter of the previous year. For the same comparative period, operating expenses were Rs 2,942.6 crore as against Rs 2,100.4 crore,” the release said.