SpiceJet profit at Rs 238 cr, Ajay Singh says ‘happy with progress’

By: | Published: January 23, 2016 7:43 PM

SpiceJet, on Friday, reported net profit of Rs 238.40 crore in the October-December quarter of the current financial year on the back of a substantial reduction in fuel cost, rise in revenues due the increase in the number of passengers carried and better operating efficiency.

SpiceJet, on Friday, reported net profit of Rs 238.40 crore in the October-December quarter of the current financial year on the back of a substantial reduction in fuel cost, rise in revenues due the increase in the number of passengers carried and better operating efficiency.

In the corresponding quarter of FY15 SpiceJet had posted a net loss of Rs 275.02 crore. As an indication of the turnaround in the fortunes of the airline, revenue for the quarter increased by 11.35% y-o-y to Rs 1,459.95 crore compared to Rs 1311.71 crore in the corresponding quarter.

In the given quarter, SpiceJet fuel expense decreased by 34.81% y-o-y to Rs 366.63 crore compared to Rs 562.37crore during the same period last fiscal. Another major expense for airlines is the aircraft lease rentals which increased by 5.86 % y-o-y to Rs 227.72 crore.

“While the margins remain slightly depressed due to wet lease operations, the Chennai floods and exchange losses, we are happy with the progress we have made so far,” Ajay Singh, chairman and managing director, SpiceJet.

As result of the declining expenses and increased efficiency the Gurgaon based airline posted an operating profit (positive EBITDA) of Rs 279.70 crore as opposed to an operating loss of Rs 206.34 crore in the corresponding quarter.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Switch to Hindi Edition