SpiceJet Ltd's Q3FY19 standalone net profit declines 77.1% yoy to Rs55.07cr: Beats Estimates

The company’s standalone revenue in the quarter stood at Rs2,486.80cr, up 20.2% yoy and 32.64% qoq.

Feb 11, 2019 04:02 IST India Infoline Research Team

SpiceJet Ltd Q3FY19

Standalone Results Q3FY19: (Rs. in cr)

Q3FY19 YoY (%)
Revenue 2,486.80 20.2
EBITDA 113.16 [62.7]
EBITDA Margin (%) 4.6 [1,012]
Net Profit (adjusted) 55.07 [77.1]
***EBITDA margin change is bps
SpiceJet Ltd’s December quarter earnings was a mixed bag as it beat the estimates on the revenue and net profit fronts but missed on the EBITDA front. Total revenue from operations witnessed a strong growth of 20.2% yoy to Rs2,486.8cr in Q3FY19 vs. Rs2,068.8cr in Q3FY18, in-line with the consensus estimates. The company’s EBITDA dropped 62.7% yoy to Rs113.16cr as compared to Rs303.4cr in Q3FY18, missing the consensus estimates by a significant margin of 38.9%. Thus, the EBITDA margin declined significantly from 14.7% in Q3FY18 to 4.6% in Q3FY19, a drop of 1,012bps. The airline’s net profit plummeted 77.1% yoy to Rs55.07cr in Q3FY19 vs. Rs240cr in Q3FY18. However, the street was expecting the company to report a net loss of Rs0.58cr for the current quarter.
  • Top-line growth came on the back of an incremental expansion of capacity (up 16%) coupled with a strong load factor (91.6%) during the December quarter of fiscal year 2019.
  • SpiceJet’s operating profit before rentals (EBITDAR) came in at Rs456.3cr for the December quarter, 19.7% down from the same quarter last year. A steep rise in fuel costs (up 53.5% yoy to Rs968.3cr in Q3FY19) coupled with higher maintenance costs (up 30.5% yoy to Rs385cr in Q3FY19) led to the disappointing performance at the operating profitability front. EBITDAR margin contracted from 27.5% in Q3FY18 to 18.4% in QFY19.
  • Finance costs increased 26.6% yoy to Rs40.7cr in Q3FY19 vs. Rs32.2cr in Q3FY18.
  • Other income jumped 61.2% yoy to Rs44cr, while other expenses increased 11.7% yoy to Rs138.2cr for the December quarter.
  • Bottom-line suffered owing to a sharp rise in operating expenses (up 33.4% yoy to Rs2,475.8cr in Q3FY19) during the quarter under consideration.

Technical View:

SpiceJet Ltd ended at Rs80.30, up 1.7 points, or 2.16%, from its previous close of Rs78.60 on the BSE. The scrip opened at Rs78.65 and touched a high and low of Rs82.95 and Rs77, respectively. A total of 16,52,421 (NSE+BSE) shares were traded on the counter. The stock traded above its 200-DMA.

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