Tuesday, November 16, 2021

Spicejet tumbles after Q2 net loss widens to Rs 561 cr

Spicejet fell 3.65% at Rs 71.25 after the low-cost airliner reported a net loss of Rs 561.70 crore in Q2 FY22, higher than the net loss of Rs 112.59 crore posted in Q2 FY21.

Net sales increased by 28.1% to Rs 1,301.71 crore in Q2 FY22 from Rs 1,016 crore posted in Q2 FY21. The airline company posted a pre-tax loss of Rs 561.7 crore in Q2 FY22, higher than pre-tax loss of Rs 112.59 crore posted in Q2 FY21.

Operating expenses spiked 48% year on year to Rs 2,100 crore in Q2 FY22 from Rs 1,418 crore spent in Q2 FY21. On an EBITDA basis, loss was at Rs 106.5 crore for Q2 FY22 as against a profit of Rs 442 crore reported for the same period last year. The airliner reported EBIDTAR profit of Rs 50.6 crore in Q2 FY22 as against EBITDAR of Rs 475 crore posted in Q2 FY21.

In terms of operational parameters, SpiceJet reported average domestic load factor at 78% for the quarter as compared to 73.1% posted in same period last year.

Spicejet said it witnessed a negative cash flow as the continuing rise in fuel costs could not be passed on to its customers due to committed long term contracts. The long-term contracts have now been re-negotiated and corrected to suit the present operating cost environment.

Ajay Singh, chairman and MD of SpiceJet, said, With the nationwide vaccination drive growing at an unprecedented pace across geographies, there is a significant jump in travel demand and we are very excited about the demand recovery. The settlement with key lessors, the return of the 737 MAX in the current quarter (Q3), transfer of the logistics business and some very significant announcements lined up soon are all positive tailwinds that should have a significant impact on our long term plans. The return of the 737 MAX comes at the perfect time for us with passenger traffic picking-up and the government allowing airlines to operate at full capacity. We look forward to inducting additional capacity in the form of our 737 MAX aircraft that will upswing our operational efficiencies and provide significant cost saving capabilities.

15/11/21 Capital Market/Business Standard

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