SpiceJet shares jump over 7% as company swings back to black in Q4 FY24

The debt-laden airline reported a net loss of ₹300 crore for the September quarter of FY24 and a net profit of ₹119.6 crore for the January-March quarter.

The Gurugram-based airline released its full-year financial results after a gap of several months, narrowing down its consolidated loss for FY24 to ₹423 crore against a loss of ₹1,513 crore in the previous year.

However, revenue from operations declined 20% year-on-year to ₹7,085 crore in FY23-24. On a quarterly basis, the airline coped better in the January-March quarter, recording a consolidated net profit of ₹127 crore, against a loss of ₹299 crore in the previous quarter and a loss of ₹6 crore in the year-ago period. Consolidated revenue from operations remained under pressure in Jan-Mar, declining 9.1% from the previous quarter to ₹1,738 crore and was down 19% year-on-year.

"We are pleased to announce a strong financial performance in Q4 FY2024, with net profit surging sixfold to ₹119 crore (standalone) 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 a statement.

The airline has faced significant legal challenges from lessors and an ongoing dispute with Kalanithi Maran and KAL Airways. It also has liquidity problems, resulting in delays in paying salaries and EPF contributions to its employees.

Numerous lessors have filed cases against the airline in the National Company Law Tribunal (NCLT), seeking insolvency due to overdue payments for leased aircraft.

Meanwhile, Ajay Singh has announced plans to raise ₹2,000 crore by August, following a recent successful fundraising round from investors. The airline also aims to increase its capacity by leasing additional aircraft, as stated by the chairman. Singh mentioned in June that over the next two quarters, the airline intends to improve its financial position.

SpiceJet stock performance

At the current market price of ₹57.83 per share, the company’s market capitalisation stands at ₹4,588.26 crore. The company’s shares rose by 5.6% in the last trading session in anticipation of its eagerly awaited financial results.

In the past year, SpiceJet's shares have nearly doubled in value, surging by 92%, outperforming the Nifty 50 index, which rose by 25% during the same period. The stock touched a 52-week high of ₹77.5 on February 5, 2024, and a 52-week low of ₹28 on July 19, 2023.