Wednesday, November 13, 2019

SpiceJet Q2 preview: Analysts estimate 8x EBITDAR growth, loss to narrow

New Delhi: Budget carrier SpiceJet was trading flat ahead of its September quarter results (Q2FY20), slated to be announced later today.
At 9:48 AM, the stock was trading 0.22 per cent lower at Rs 114.8 per share, as against an unchanged S&P BSE Sensex. Thus far in 2019, the low-cost carrier (LCC) has outperformed the benchmark index. The counter has surged 29 per cent YTD, relative to a 12 per cent gain in the S&P BSE Sensex.
The LCC, in the previous quarter of the current fiscal (Q1FY20), reported a standalone profit of Rs 261.7 crore, while the operating revenue was Rs 3,002.1 crore. Further, the EBITDA was Rs 620.8 crore. On a consolidated basis, the net profit stood at Rs 262.89 crore.
Edelweiss Securities sees loss of Rs 322.4 crore in the recently concluded quarter due to seasonal weakness. The airline had reported a loss of Rs 389.4 crore in Q2FY19.
“We expect SpiceJet to report losses in Q2FY20 due to seasonal weakness, albeit lower YoY. Additionally, we expect the airline to continue to clock robust revenue passenger kilometers (RPKM) growth (up 46 per cent YoY) versus mid-single-digit industry growth, coupled with 3-5 per cent YoY rise in yields, despite seasonal weakness,” analysts at Edelweiss wrote in their results preview note.
13/11/19 Nikita Vasisht/Business Standard
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