SpiceJet Q3 reports highest quarterly net profit at Rs 238.40 crore on lower fuel costs

SpiceJet Q3 reports highest quarterly net profit at Rs 238.40 crore on lower fuel costsSpiceJet reported net profit for the fourth consecutive quarter ending December 2015. Picture: SpiceJet aircraftReuters

SpiceJet has reported a net profit of Rs 238.40 crore for the quarter ended 31 December, 2015, as against a loss of Rs 275 crore registered in the corresponding quarter last fiscal. A 35% decline in fuel costs due to low jet fuel prices enabled the company to stage a turnaround.

The three-month period also marks the fourth consecutive profitable quarter for the budget carrier since December 2014.

“SpiceJet was back to near normal operations this quarter. 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,” said Ajay Singh, Chairman and Managing Director of the company.

Revenues for the quarter stood at Rs 1,439.38 crore, up from Rs 1,297.69 crore in the corresponding period last fiscal.

Aircraft fuel expenses declined sharply from Rs 562.37 crore during the December 2014 quarter to Rs 366.63 crore, translating into a reduction of 34.8%.

Employee costs also dropped to Rs 128 crore from Rs 143 crore.

In domestic passenger air traffic, SpiceJet’s market share declined to 12.7% in December 2015 from 13.3% in November.

Shares of SpiceJet closed at Rs 70.85 on Friday, down 5.03% from its previous close on the BSE. The fall was mostly due to low net profit figures of Interglobe Aviation (which owns IndiGo) for the second quarter, dampening sentiments. Jet Airways also saw a plunge in its share prices and closed at Rs 617.35, down 6.36%. The company will declare its third quarter results on 6 February, 2016.

The SpiceJet counter witnessed heavy trading on the BSE, with 540 lakh shares traded on Friday, as against the two-week average of 147 lakh shares.

The Sensex closed at 24,435.66, up 473 points, or 1.98% tracking an uptrend in global markets that rose on a rebound in crude oil prices.

The 50-scrip Nifty also edged higher at 7,422, a gain of 145.65 points or 2%.

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