No-frills airline SpiceJet on Friday reported a multi-fold rise in net profit to Rs 107 crore in the three months ended December 2022, helped by better performance in passenger and cargo businesses.
Separately, the company's board will now meet on February 27 to consider fund raising options. The meeting was originally scheduled to be held on Friday.
SpiceJet, which has been facing multiple headwinds, has availed nearly Rs 211 crore under the government's Emergency Credit Line Guarantee Scheme (ECLGS) in the December and September quarter, respectively.
Under the scheme, an additional amount of Rs 128.64 crore has also been sanctioned. Further, the carrier is in discussions with banks for availing Rs 764 crore more under the ECLGS.
In the latest December quarter, the airline's revenues rose 4 per cent to Rs 2,794 crore from Rs 2,679 crore in the year-ago period.
The carrier had a net profit of Rs 23.28 crore in the year-ago period.
According to a statement, the airline's cargo business SpiceXpress reported a net profit of Rs 12 crore in the December quarter.
In the third quarter of the current fiscal, the airline's net profit stood at Rs 221 crore, excluding forex adjustment and the corresponding figure in the same period a year ago was at Rs 20 crore, it said.
"Despite a big jump in passenger traffic, business continued to be impacted by high fuel prices and depreciating rupee," it said.
SpiceJet said there was a 48 per cent increase in average Aviation Turbine Fuel (ATF) prices while Indian rupee depreciated by 11 per cent in comparison to the US dollar in the December quarter.
"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... we look forward to a robust and exciting 2023," SpiceJet Chairman and Managing Director Ajay Singh said.
Yield improvement of 21 per cent in the December quarter resulted in an increase of passenger revenue by 33 per cent while ancillary revenue saw a marginal rise.
The airline launched 15 new routes and operated 254 charter flights in the December quarter. During this period, its passenger load factor averaged 91 per cent on domestic routes.
In a note to the financial statement submitted to the BSE, SpiceJet said it has availed funds worth Rs 150.98 crore and Rs 60 crore under the ECLGS in the December and September quarter, respectively.
Additionally, the airline has been sanctioned Rs 128.64 crore under the ECLGS, which is being disbursed during January-February 2023, it said.
The carrier is also in advance discussions with banks for sanction and disbursement of additional funds worth Rs 763.96 crore under the ECLGS.
According to the airline, it continues to implement! various measures such as improving selling and distribution, revenue management, fleet rationalisation, redeployment of capacity in key focus markets and renegotiation of contracts and other costs to help it in consistent profitable operations and cash flows in the future.
