SpiceJet Flies High In Q1FY24, Earns Profit of Rs 205 Crore Up By 126% On Strong Demand

Private carrier, SpiceJet reported a massive 126% rise in consolidated net profit to Rs 205 crore in the quarter ending June 30, 2023, compared to a net loss of Rs 789 crore in Q1FY23 due to a strong demand for air travel in India. In the quarter, the airline recorded a decline in operating expenses and significant growth in EBITDA that lifted the overall bottom line. SpiceJet has also declared its Q4FY23 and full-year FY23 earnings, apart from the first quarter results for FY24.

In the quarter, for the same comparative period, operating expenses were Rs 1,291 crore as against Rs 2,072 crore. On an EBITDA basis, profit was Rs 525 crore for the reported quarter against a loss of Rs 393 crore for the quarter ending June 30, 2022.

On the top-line front, total operating revenue for the reported quarter was Rs 2,002 crore as against Rs 2,457 crore in the same quarter of the previous year.

Ajay Singh, Chairman and Managing Director, of SpiceJet, said, "I am happy that despite facing multiple challenges, we have posted a profit in Q1 FY2024. Our team's relentless efforts and dedication and the continuous support from our valued customers have been pivotal in this success."

Singh further added, "I firmly believe in the potential of our airline, and I am pleased to have contributed to its growth by infusing Rs 500 crore into the Company. This infusion will help bolster our efforts in reviving our grounded planes, for which we have been working tirelessly, strengthening our fleet and expanding our cargo operations."

According to the regulatory filing, the airline completed the hive-off of its logistics platform into a separate entity, SpiceXpress and Logistics Private Limited effective April 1, 2023. Consequently, this led to an improvement in the airline's net worth to Rs 2,557 crore.

"Our logistics arm continues to soar. Its exceptional performance, with sustained profits, has been a driving force, contributing to our overall success. We remain focused on adapting to the changing landscape of the aviation industry, identifying and seizing new opportunities, and steering our airline towards greater heights," Singh added.

Meanwhile, in terms of operational parameters, SpiceJet had the highest passenger load factor amongst all airlines in the country. The average domestic load factor was 92% for the March 2023 quarter and 88% for FY2023. SpiceJet had the highest load factor of 90% in Q1FY2024.

During the March quarter, the company posted a PAT of Rs 17 crore against a net loss of Rs 458 crore in Q4FY22. EBITDA for this quarter stood at Rs 344 crore, against a loss of Rs 53 crore in Q4 of FY22. In Q4FY23, the airline also registered the industry's highest domestic load factor of 92%.

Further, SpiceJet lowered its net loss to Rs 1,503 crore in financial year 2022-23 compared to Rs 1,725 crore in FY2022. Revenue was at Rs 8,869 crore in FY2023 as against Rs 6,557 crore in FY2022. For the full year, the airline reported the industry's highest load factor of 88% for domestic scheduled flights. Also, passenger RASK improved by 30% compared to last year. While growth of ASKM by 39% and yield improvement of 34% resulted in an increase of passenger revenue by 81% compared to the last year. In the fiscal, the airline operated 1,568 charter flights carrying over 2,48,568 passengers.

On Monday, SpiceJet's share price closed at Rs 33.67 apiece, up by 6.7% on BSE. Its market cap was at Rs 2,026.41 crore.