The share price of SpiceJet gained over 7% as the low cost carrier on Monday reported a six fold jump in the fourth quarter of financial year 2024. The share price of SpiceJet traded up by 7.3% to an intra-day high of Rs 60 on BSE.
SpiceJet’s Q4FY24 Performance
Budget carrier SpiceJet announced a consolidated net profit of Rs 127 crore for the fourth quarter ended March 2024, marking a significant turnaround from losses reported in previous quarters.
The airline had incurred losses of Rs 6.2 crore and Rs 299 crore in the March and December 2023 quarters, respectively. Consolidated revenue from operations for Q4 FY2024 declined by 19% year-on-year to Rs 1,738 crore.
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On a standalone basis, SpiceJet reported a sixfold increase in net profit, reaching Rs 119 crore for the fourth quarter. Standalone EBITDA stood at Rs 386 crore, reflecting a 12% year-on-year growth.
What’s the Management Commentary?
Ajay Singh, CMD of SpiceJet, expressed satisfaction with the strong financial performance, attributing it to efforts in enhancing operational efficiency and steering the company towards profitability.
Looking ahead, SpiceJet highlighted its strategic positioning and plans to capitalize on the growing demand in the Indian aviation market. The airline aims to raise fresh funds to support its growth initiatives, building on the in-principle approval received earlier this year from the BSE for a fund infusion of Rs 2,242 crore. So far, SpiceJet has raised Rs 1,060 crore under a preferential issue in two tranches as part of its broader revival strategy.
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For the fiscal year 2023-2024, SpiceJet narrowed its losses significantly to Rs 423 crore compared to Rs 1,513 crore in the previous fiscal year. However, revenues for FY24 declined by 20% year-on-year to Rs 7,085 crore amidst challenging market conditions.
Stock Performance In last One Year
In terms of stock performance, SpiceJet faced a mixed bag of results. In the last month, the stock tried to secure positive returns at 7.33%, showcasing a modest upward movement. Contrastingly, the past six months were challenging, with the stock experiencing negative returns of 10.32%, indicating a period of decline.
Year-to-date figures continued in negative territory, depicting a decline of -3.69%. However, over the last twelve months, the stock managed to maintain positive returns of 89.96%, highlighting its resilience in the longer term.
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