SpiceJet Q1 net profit declines 20% to Rs 158.75 crore, revenue down 14%

SpiceJet Q1 earnings: SpiceJet Ltd reported a 19.65 per cent decline in consolidated profit for the June 2024 quarter (Q1 FY25). The airline's profit for the quarter stood at Rs 158.75 crore, down from Rs 197.58 crore in the same period last year.

Revenue from operations also fell by 14.15 per cent, decreasing to Rs 1,646.21 crore from Rs 1,917.43 crore a year ago.

Despite the drop in profit and revenue, SpiceJet achieved an operating profit of Rs 393 crore for the quarter, supported by an EBITDA of Rs 401 crore up from Rs 310 crore in Q4 FY24. The airline reported an EBITDAR of Rs 650 crore, up from Rs 616 crore in the previous quarter.

SpiceJet maintained its industry-leading domestic load factor at 91 per cent, highlighting its strong market position and operational efficiency, the company stated.

In a separate announcement, SpiceJet revealed plans to raise Rs 3,000 crore through a Qualified Institutional Placement (QIP), which is expected to be completed by the end of September 2024. This fundraise aims to strengthen the airline's financial position, support its growth plans, expand and refurbish its fleet, settle liabilities, and enhance market competitiveness.

Ajay Singh, Chairman and Managing Director of SpiceJet, emphasised that the QIP will be crucial in reinforcing the airline’s financial foundation and positioning it for sustained success. He affirmed confidence in the resilience of the airline's business model and commitment to delivering an exceptional flying experience.

The quarterly results were released after market hours. Earlier in the day, SpiceJet shares fell by 2.50 per cent, closing at Rs 55.03.

In response to the recent volatility, the BSE and NSE have placed SpiceJet's securities under the long-term Additional Surveillance Measure (ASM) framework, which is designed to alert investors to potential price fluctuations.