Private carrier SpiceJet on Monday reported a sixfold surge in net profit to Rs 119 crore for the fourth quarter that ended on March 31, compared to Rs 17 crore in the same period last year. On an EBITDA basis, the airline said that its profit for the reported quarter was Rs 386 crore, up from Rs 344 crore in Q4 of FY23.
The debt-laden airline reported its Q3 and Q4 results for the financial year 2024 on Monday. For the December quarter, SpiceJet reported a loss of Rs 301.45 crore as against a profit of Rs 106.82 crore in FY23, it stated.
Revenue from operations during QFY24 declined 20% to Rs 1,719.37 crore from Rs 2,144.85 crore in the fourth quarter FY23, according to a regulatory filing.
For the fiscal year that ended on March 31, 2024, SpiceJet said that it significantly reduced its losses by nearly 73%, reporting a post-tax loss of Rs 409 crore compared to a net loss of Rs 1,503 crore in FY2023.
"We are pleased to announce a strong financial performance in Q4 FY2024, with net profit surging sixfold to Rs 119 crore compared to the same quarter last year. The results reflect our relentless efforts to enhance operational efficiency and our commitment to turning around the company's fortunes,” said Ajay Singh, Chairman and Managing Director, SpiceJet.
In January this year, SpiceJet received in-principle approval from BSE for a fund infusion of INR 2,242 crore and raised INR 1,060 crore under preferential issue in two tranches.
“We are confident that SpiceJet is well-positioned to soar even higher in the coming quarters. As we move forward, we are exploring opportunities to raise fresh funds to further bolster our growth plans and take advantage of the burgeoning demand in the Indian aviation market,” said Singh.
The airline, often in the news for financial disputes with its former promoter and aircraft lessors, said that it signed a settlement agreement at $ 22.5 million with Export Development Canada (EDC) to resolve $90.8 million (INR 755 crore) in liabilities. It stated settling liabilities aggregating to over US$50 million with various lessors.
Certain aircraft/engine lessors have filed application(s) under Section 9 of the Insolvency and Bankruptcy Code, 2016 due to alleged non-payment. The airline said that it has certain disputes in the matter and the amounts claimed are not debts and accordingly the company is defending such matters.
“Based on the review of applications filed and the legal interpretation of the law supported by views of legal experts, the management is of the view that there are fair chances of having a favourable outcome for the company,” it added.
The company had incurred a net loss (after comprehensive income) of Rs 300 crore and Rs 523 crore for the quarter and nine months period that ended on 31 December 2023 respectively, and as of that date, it has negative retained earnings of Rs 7,939 crore and negative net worth of Rs 3,322 crore.
“Losses over the last few years have been primarily driven by adjustments on account of implementation of Ind AS 116, adverse foreign exchange rates, operational disruption during Covid 19 followed by sub-optimal operations due to liquidity constraints faced by the company,” said SpiceJet. On account of its operational and financial position, the company has deferred payments to various parties, it added.