SpiceJet shares declined over 14 per cent amid a falling market in early trade today after the budget carrier reported widening of net loss to Rs 789 crore in the June quarter as high fuel prices and rupee depreciation adversely impacted the budget carrier. The low-cost carrier logged a net loss of Rs 729 crore in the quarter ended June 2021.
Stock of SpiceJet slipped over 14 per cent intraday to Rs 39.6 today against the previous close of Rs 46.40 on BSE. SpiceJet shares opened with a loss of 9.48 per cent at Rs 42 on BSE. Shares of SpiceJet have lost 39.74 per cent in the last one year and fallen 36.2 per cent since the beginning of this year.
However, the stock has gained 7.82 per cent in a month. In a week, the stock has lost 7 per cent. The airline stock is trading higher than 50-day moving averages but lower than 5-day, 20-day, 100-day and 200-day moving averages. Total 6.64 lakh shares of the firm changed hands amounting to a turnover of Rs 2.92 crore on BSE. Market cap of the airline fell to Rs 2,605 crore.
ALSO READ: SpiceJet loss widens to Rs 789 crore in June quarter; plans to raise $200 mn
QI earnings were impacted by high fuel prices and rupee depreciation which adversely impacted the budget carrier. Amid the financial turmoil, the airline plans to raise $200 million, which is around Rs 1,600 crore at current exchange rates and expects to complete the hiving-off of its profitable cargo business into a separate company in the current quarter.
However, SpiceJet’s revenue zoomed 126 per cent on a year-on-year (YoY) to Rs 2,457 crore in Q1. On a sequential basis, the airline’s revenue grew 32 per cent. The Q1 earnings were announced on the day the airline said its Chief Financial Officer Sanjeev Taneja resigned.
The firm said its board of directors had identified a candidate for the CFO’s position, and the vacancy shall be filled this month. In another development that affected the sentiment around the stock today, aviation watchdog Directorate General of Civil Aviation (DGCA) deregistered two more Boeing 737 planes of SpiceJet following non-payment of dues to lessors.
With the latest deregistration, a total of six Boeing 737 aircraft of the budget carrier were deregistered in August. For the full fiscal year 2021-22, the net loss surged 73 per cent to Rs 1,725 crore from Rs 998.30 crore in the comparable period.
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