SpiceJet significantly cuts down net loss in seasonally weak Q2 to INR 112.6 Crore

SpiceJet, the country's favourite airline, significantly cut down its net loss in the traditionally weak Q2 despite travel restrictions and Covid-19 affecting demand. On a standalone basis the net loss was reduced to INR 112.6 crore as against INR 462.6 crore in the same period last year.

For the Quarter ending September 2020

- Net loss of INR 112.6 crore as against INR 462.6 crore in the same period last year
- EBIDTAR profit of INR 475 Cr
- Revenue from cargo increased by 39% Quarter on Quarter
- Registers industry's highest domestic load factor of 73.1%
- Capacity (in terms of seat kilometre for passenger segment) contracted by 71% as compared to same quarter last year
- Revenue from operations fell by 63% due to COVID-19 compared to same quarter last year
- Non-cash Ind-AS 116 impact of INR 171 crore

Total income was INR 1,305 crore for the reported quarter as against INR 3,074 crore in the same quarter last year. For the same comparative period, expenses were INR 1,418 crore as against INR 3,536 crore. On an EBITDA basis, SpiceJet achieved profit of INR 442 crore for the reported quarter as against INR 91 crore for the corresponding quarter last year. On an EBITDAR basis, the profit was INR 475 crore for the reported quarter as against profit of INR 154 crore for the same quarter last year.

The present operating environment on account of Covid-19 though does not reflect the true comparison of the current results with those of corresponding quarter last year.

Ajay Singh, Chairman and Managing Director, SpiceJet, said, "Despite Covid-19 continuing to pose serious operating challenges we have managed to significantly cut down our net loss in Q2 much like the previous quarter. The performance in Q2 is even more significant and special as this was a seasonally weak quarter when demand is at its lowest. Our Company and people have done some amazing work and I am proud of the determination and resilience they have shown."

"Going forward, as our cargo business continues to expand, passenger demand further improves, travel restrictions are eased and the 737 MAX returns to service we hope the recovery will be much quicker and stronger. Though Covid-19 cases continue to rise, I believe the worst is behind us. The pandemic gave us the unprecedented opportunity to further cut down on costs and re-structure our contracts and aircraft leases to align with current operating environment while at the same time operating the full schedule as was permitted. What we have managed to do in the last few months will have a significant long term impact."

In terms of operational parameters, SpiceJet had the best domestic passenger load factor of 73.1% amongst all airlines in the country during the quarter.

Shares of SPICEJET LTD. was last trading in BSE at Rs.54 as compared to the previous close of Rs. 51.35. The total number of shares traded during the day was 1008891 in over 3888 trades.

The stock hit an intraday high of Rs. 55 and intraday low of 51. The net turnover during the day was Rs. 53595505.

Source : Equity Bulls

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