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SpiceJet Returns to Profit Worth Rs. 23 Crores in Q3 FY 22

05 August 20223 mins read by Angel One
SpiceJet Returns to Profit Worth Rs. 23 Crores in Q3 FY 22
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On Tuesday, 15 February 2022, SpiceJet Ltd. reported a net profit of Rs. 23.28 crores in Q3 FY 22 ended on 31 December 2021 ─ marking a stellar improvement from a loss of Rs. 56.96 crores in Q3 FY 21.

Keep scrolling to get the details!

Know About SpiceJet’s Revenue!

With the addition of newer aircraft and more destinations, SpiceJet’s revenue rises 34% from Rs. 1,686 crores in Q2 FY 22 to Rs. 2,259 crores in Q3 FY 22. The passenger sector experienced a much-awaited turnaround during the 3rd quarter with a fall in COVID cases in the 1st half ─ travel rose significantly.

However, the Omicron wave delayed the recovery during the 2nd half of December. The increasing fuel costs, unexpected halt of 737 MAX’s return to service and some exceptional adjustments hampered the company’s performance to a great extent.

Contrarily, the logistics sector continues to stay strong. The logistics platform of the company, SpiceXpress, posted a 17% jump in revenue from Rs. 498 crores in Q2 FY 22 to Rs. 584 crores in Q3 FY 22.

Are There Any Challenges for SpiceJet?

The entity is seeking to raise funds from the issue of a warrant and minimise liabilities by up to $300 millions over 6 months. It received money, both in-kind and cash, from Boeing Co. to compensate for the losses from 737 Max (the jets were sidetracked).

In December, Go Airlines India Ltd. overtook SpiceJet as the 2nd largest airline in India. Further, Air India Ltd. will also give stiff competition to SpiceJet in the coming years. This is because of the expected revamp of Air India after Tata Sons took it over in January.

Another challenge of the airline is its dispute with Kalanithi Maran (former owner) over stock transfers. On Monday, 14 February 2022, he denied accepting the offer of Rs. 600 crores from SpiceJet and demanded a higher payment.

Wrapping Up

Rise in passenger traffic, impressive logistics operations and several accommodations from lessors and aircraft manufacturers have driven the margins of SpiceJet. It incurs Rs. 77 crores exceptional adjustment with Boeing. The coming quarter will witness a significant rise in freighter capacity.

Go through Angel One blogs to get the latest updates about investments, the stock market and IPOs.

Frequently Asked Questions

1. How much did SpiceJet’s stock hike on BSE?

The shares of SpiceJet grew by 7% on the Bombay Stock Exchange. Despite its legal battle (insolvency proceeding involved), it emerged in the stock market with its earnings.

2. How much is SpiceJet’s EBITDA in Q3 FY 22?

EBITDA for SpiceJet amounts to Rs. 511 crores in Q3 FY 22 as against Rs. 106 crores loss in Q2 FY 22.

3. How much is SpiceJet’s profit on an EBITDAR level in Q3 FY 22?

On the basis of EBITDAR, SpiceJet posted a profit worth Rs. 644 crores in Q3 FY 22 relative to Rs. 66 crores profit in Q2 FY 22.

Disclaimer: This blog is exclusively for educational purposes and does not provide any advice/tips on investment or recommend buying and selling any stock.

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