SpiceJet Share Prices Today: Shares of private carrier SpiceJet Ltd fell as much as 14.7 per cent on Thursday, after it posted a bigger loss due to high fuel costs and unfavourable foreign currency rates, and said its chief financial officer had resigned. Meanwhile, the airline’s CFO Sanjeev Taneja resigned on Wednesday. The board has identified a candidate for the CFO’s position and the vacancy shall be filled in September, the airline said.
Spicejet shares gave up over 14 per cent in early deals and were trading 6.3 per cent lower at Rs 43.45 on BSE at 9:27 am. Though the stock has gained over 7 per cent in the past month, it has erased more than 36 per cent of investors’ wealth in 2022 (year-to-date) as against the benchmark Sensex which has 0.6 per cent during the period.
Financials
SpiceJet had delayed announcing the results of its fourth quarter in 2021-22 due to a ransomware attack. The total revenue from operations during the January-March quarter was Rs 1,865 crore, slightly lower than Rs 1,877 crore reported in the year-ago period.
Similarly, revenue from operations during the April-June period stood at Rs 2,457 crore, more than double of Rs 1,090 crore in the same period a year ago.
“The industry has been witness to one of the most severe operating environments in the recent past which impacted the progress and recovery made in Q3FY2022.
Record high ATF prices and depreciating rupee were the major contributors,” Ajay Singh, company’s chairman and managing director, said in a statement.
The airline said that aviation turbine fuel prices rose around 105 per cent in April-June compared to the same quarter last year, which impacted its financial performance. Passenger revenue per available seat-kilometre (RASK) rose by 80% in April-June compared to the same quarter last year, while passenger RASK rose only 11% in January-March compared to a year ago period.
Similarly, available seat miles (ASKM) rose 11 per cent y-o-y in January-March while yields improved 5 per cent. The airline did not share its ASKM and yields for the April-June quarter.
The net loss after excluding forex restatement impact came in at Rs 420 crore for the June quarter. The airline incurred a one-time exceptional adjustment of `259 crore on account of a settlement with Boeing.
On earnings before interest, taxes, depreciation, and amortisation (Ebitda) basis, SpiceJet reported a loss of Rs 379 crore in April-June. However, on an earnings before interest, taxes, depreciation, amortisation and rent (Ebitdar) basis, 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 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.
“The board has mandated fresh capital issuance, and the company will be shortly engaging with investment bankers for a potential raise of up to the US $200 million,” the company said in its regulatory filing.
However, the airline added that several conditions indicate the existence of “material uncertainties that may cast significant doubt about the company’s ability to continue as a going concern.”
Meanwhile, on Wednesday, 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.
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