SpiceJet stock prices today: Shares of private airline SpiceJet Ltd fell as much as 14.7 percent on Thursday after it posted a larger loss due to high fuel costs and unfavorable exchange rates, and said its chief financial officer had resigned. Meanwhile, the airline’s CFO, Sanjeev Taneja, resigned on Wednesday. The board has found a candidate for the position of CFO and the vacancy will be filled in September, the airline said.
Spicejet shares were down more than 14 percent in early deals and traded 6.3 percent lower at Rs 43.45 on BSE at 9:27 am. While the stock has gained more than 7 percent in the past month, it wiped out more than 36 percent of investors’ net worth in 2022 (year-to-date), compared to the benchmark Sensex, which had 0.6 percent in the period. .
Financial
SpiceJet had postponed the announcement of its fourth quarter results in 2021-22 due to a ransomware attack. Total operating income during the January-March quarter was Rs 1,865 crore, slightly lower than Rs 1,877 crore reported in the same period a year ago.
Similarly, operating revenues in the April-June period were Rs 2,457 crore, more than double from Rs 1,090 crore in the same period a year ago.
“The industry has witnessed one of the most severe business environments in the recent past that impacted progress and recovery in Q3FY2022.
Record high ATF prices and the depreciating rupee were the main drivers,” said Ajay Singh, the company’s chairman and chief executive, in a statement.
The airline said aviation turbine fuel prices rose about 105 percent in April-June compared to the same quarter last year, impacting its financial performance. Passenger revenue per available seat kilometer (RASK) increased by 80% in April-June compared to the same quarter last year, while passenger RASK increased only 11% in January-March compared to a year ago.
Similarly, available seat miles (ASKM) rose 11 percent yoy in January-March, while returns improved 5 percent. The airline did not share its ASKM and earnings for the April-June quarter.
Net loss after excluding the impact of the exchange rate adjustment came to Rs 420 crore for the June quarter. The airline made a one-time exceptional adjustment of `259 crore due to a settlement with Boeing.
Based on earnings before interest, taxes, depreciation and amortization (Ebitda), SpiceJet reported a loss of Rs 379 crore in April-June. However, based on earnings before interest, taxes, depreciation, amortization and rent (Ebitdar), the company reported a profit of Rs 57 crore in April-June.
Amid the financial turmoil, the airline plans to raise $200 million, which is approximately Rs 1,600 crore at current exchange rates, and expects to complete the spin-off of its profitable cargo business into a separate company in the current quarter.
“The board of directors has ordered new capital issuance and the company will soon be in talks with investment bankers for a possible raise of up to $200 million,” the company said in its registration filing.
However, the airline added that various circumstances indicate the existence of “material uncertainties that could cast significant doubt on the company’s ability to continue as a going concern.”
Meanwhile, the aviation watchdog of the Directorate General of Civil Aviation (DGCA) deregistered two more Boeing 737 aircraft from SpiceJet on Wednesday after non-payment of dues to lessors. At the last deregistration in August, a total of six Boeing 737 aircraft from the budget carrier were deregistered.
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