SpiceJet posts spicy profits this quarter

SpiceJet Ltd., the eleven year old budget carrier, on May 19 has declared its Q4FY16 results. The company which was suffering from losses for the last couple of quarters, for the March quarter has reported a net profit of Rs 73.19 crores. Net profits have surged by 3 times as compared to Q4FY15. EBITDA for the period stands at Rs 42.04 crores. Total income from operations stands at Rs 1475 crores for the quarter, as against Rs 786.33 crores for the corresponding period of the previous fiscal. Total income has increased by 88 per cent.

On a YoY basis, net profits stand at Rs 14.94 crores, whereas for the previous fiscal the company had reported a net loss of Rs 658.22 crores. EBITDA stands at Rs 432 crores, while previously EBITDA was reported at a loss of Rs 658.22 crores. Consolidated total income for the period stands at Rs 5088.07 crores.

The company has taken a one-time expense of Rs.173 crores “towards stabilising and improving the reliability of its fleet”, and has still managed to post double digit profits. Low crude oil prices have also been beneficial, and have reduced the cost of consumption of raw material.

The stock fundamentally looks quite strong, the numbers for the Q1FY17 will be better than the numbers of Q4FY16 as the company has consolidated its one time expenses in this quarter.

SpiceJet Ltd., is an Indian company engaged in the airline business. The company operates in only one segment- transportation. The company operates in both domestic and international flights.

The shares on the bourses on Friday have opened at Rs 77.40, down by 6 per cent.