SpiceJet's Q1FY19 standalone net profit declines 85.5% yoy to Rs25.4cr

The company’s standalone revenue stood at Rs2,235.8cr, up 19.6% yoy

Aug 14, 2018 10:08 IST India Infoline Research Team

SpiceJet Q1FY19

Standalone Results Q1FY19: (Rs. in cr)

Q1FY19 YoY (%)
Revenue 2,235.8 19.6
EBITDA 83.8 [63.8]
EBITDA Margin (%) 3.7 [864]
Net Profit (adjusted) 25.4 [85.5]
***EBITDA margin change is bps

SpiceJet delivered disappointing Q1FY19 numbers. Sales have increased by 19.6% yoy to Rs2,235.8cr from Rs1,869.5cr. EBITDA has decreased by 63.8% yoy to Rs83.8cr during the quarter from Rs231.5cr in Q1FY18. EBITDA margin was down by 864bps yoy to 3.7% in Q1FY19. Adjusted net profit de-grew by 85.5% yoy to Rs25.4cr.

• The growth in revenue is a result of yoy increase in capacity and passenger yields by 14% and 4% respectively. The airline recorded domestic load factor of 94.53%.

• The operating performance was affected by 52% yoy increase in air turbine fuel (ATF) cost. In addition, SpiceJet accounted for Rs51cr as forex losses (that includes the provision of Rs25.2cr of forex revaluation) due to the depreciation of the Indian Rupee.

• Poor operating performance coupled with increase in finance cost by 78% yoy to Rs30.2cr has led to decline in net profit growth. However, other income was up by 108% yoy to Rs34.99cr.

• It launched four new routes under UDAN in Q1FY19.

• The company has taken a provision of Rs63.5cr as an exceptional item on account of an arbitration award that cited interest payable of Rs92.5cr and interest receivable of Rs29cr for SpiceJet.

• SpiceJet is likely to induct 15 aircraft till December 2018. These includes 11 737MAX and 4 Bombardier Q400s. The 737 MAX is likely to reduce cost by 8-9% as compared to the previous generation and the new generation Q400s with additional seating capacity is expected to improve the overall operating economics of this aircraft by 15-18%.

Technical View: 

SpiceJet Ltd ended at Rs. 88.70, down by 0.7 points or 0.78% from its previous closing of Rs. 89.40 on the BSE.
The scrip opened at Rs. 90.10 and touched a high and low of Rs. 90.65 and Rs. 86 respectively. A total of 33,88,725 (NSE+BSE) shares were traded on the counter. The stock traded above its 200 DMA.

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