SpiceJet Q3 Results: Net profit soars over 2.5 times aided by strong demand; shares fly high

SpiceJet Q3 Results: SpiceJet on Friday reported a net profit of Rs 110.5 crore for the quarter ended December 2022, up 2.6 times compared with the corresponding period a year ago. Its revenue grew 2.7 per cent on a year-on-year basis to Rs 2,263.4 crore, according to a regulatory filing. SpiceJet said it saw a robust increase passenger traffic during the three-month period, but high fuel prices and weakness in the rupee affected its business.

Its operating revenue grew 2.5 per cent to Rs 2,315 crore, according to a company statement.

"We exceeded our operational targets and continued with our unmatched performance clocking the highest load factor for every single month in 2022. The profits have been driven by a strong performance in both our passenger and cargo businesses," said Ajay Singh, Chairman and Managing Director, SpiceJet.

He mentioned renewed signs of a recovery and "some very positive developments and restructuring initiatives in the immediate offing" that will strengthen and deleverage the airline's balance sheet.

SpiceJet Q3 Results: Airline highlights rising jet fuel costs and weakness in INR vs USD  

The airline said its average domestic load factor — a key metric that determines the operating efficiency of a carrier — stood at 91 per cent for the three-month period, and was the highest in the industry. 

“Air travel has come roaring back touching newer heights and giving a glimpse of the huge potential of the Indian aviation market and we look forward to a robust and exciting 2023," Singh added.

SpiceJet said the average price of aviation turbine fuel — or jet fuel — increased 48 per cent during the quarter while the rupee depreciated 11 per cent against the US dollar. The company reported a 17.9 per cent increase in fuel costs during the period. Jet fuel forms the lion's share of an airline's operating costs.

SpiceJet launched 15 new sectors during the October-December period.  

SpiceJet share price

SpiceJet shares extended intraday gains after the earnings announcement, surging by as much as Rs 5.4 or 15.3 per cent to Rs 40.8 apiece during the session on BSE before settling at Rs 40 apiece for the day. 

The stock traded in heavy volumes as 25.3 lakh SpiceJet shares changed hands on the bourse for the day as against a daily average of 5.4 lakh in the past two weeks, according to exchange data. 

SpiceJet share price: Historical performance

SpiceJet shares have lost 34 per cent of their value in the past one year, much worse than a 0.3 per cent decline in the Nifty50 headline index. In the third quarter of the current financial year, the SpiceJet stock rose 2.6 per cent while Nifty50 climbed up 5.9 per cent.

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