Shares of SpiceJet rose sharply in Friday’s trade after the budget carrier reported a nearly five-fold surge in third-quarter profit (Q3 FY23). The stock jumped 15.28 per cent to hit a day high of Rs 40.75 over its previous close of Rs 35.35.
The airline, in an exchange filing, said its profit rose to Rs 107 crore for the three months ended December 31, 2022, from Rs 23.28 crore, a year earlier. SpiceJet’s total revenue for Q3 FY23 stood at Rs 2,794 crore as against Rs 2,679 crore in the same quarter of the previous year. In Q3 FY23, operating expenses were at Rs 2,687 crore, over Rs 2,579 crore in the same period a year ago.
Despite a big jump in passenger traffic, the airline said its business continued to be impacted by high fuel prices and a depreciating rupee.
Around 23.01 lakh shares changed hands today on BSE, which was more than four times higher compared to the two-week average volume of 5.35 lakh shares. Turnover on the counter came at Rs 8.98 crore, commanding a market capitalisation (m-cap) of Rs 2,401.36 crore.
Commenting on the Q3 numbers, Ajay Singh, Chairman and Managing Director, SpiceJet, said, “The profits have been driven by a strong performance in both our passenger and cargo businesses. There are renewed signs of recovery and some very positive developments and restructuring initiatives in the immediate offing that would significantly strengthen and deleverage our balance sheet.”
Air travel has come roaring back touching newer heights and giving a glimpse of the huge potential of the Indian aviation market, he added.
The average domestic load factor was 91 per cent for the December 2022 quarter. The airline said it launched 15 new routes and operated 254 charter flights in the said quarter.
The stock traded higher than 5-day, 20-, 50- and 100-day moving averages but lower than 200-day moving averages. The counter’s 14-day RSI (Relative Strength Index) came at 62.59. A level below 30 is defined as oversold while a value above 70 is considered overbought. The stock has a negative P/E (Price to Earnings) ratio of 1.03. The company has a negative Earnings Per Share (EPS) came at 34.25. The scrip has a one-year beta of 1.08, indicating high volatility on the counter.
The airline recently came under pressure after the Supreme Court directed the airline to encash bank guarantee and pay Rs 270 crore to its former promoter Kalanithi Maran. The top court said the bank guarantee of Rs 270 crore of SpiceJet must be encashed immediately and paid to Maran and his Kal Airways towards dues from the arbitral award of Rs 578 crore.
Meanwhile, Indian equity benchmarks traded lower in afternoon deals, dragged by consumer goods, technology, automobile and metal stocks.
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