Budget airline SpiceJet Ltd on Wednesday reported a 19.65 per cent drop in consolidated profit for the June 2024 quarter (Q1 FY25). The carrier's profit came at Rs 158.75 crore in Q1 FY25 as against Rs 197.58 crore in the year-ago period.
During the quarter under review, the airline's revenue from operations also took a hit and slipped 14.15 per cent to Rs 1,646.21 crore from Rs 1,917.43 crore in the corresponding period last year.
SpiceJet, in a separate release, said it achieved an operating profit of Rs 393 crore sequentially, underpinned by a solid EBITDA of Rs 401 Crore, reflecting a significant improvement from Rs 310 crore in Q4 FY24. SpiceJet also reported an EBITDAR of Rs 650 crore, up from Rs 616 crore over Q4 FY24.
It also mentioned that it continued to lead the industry with the highest domestic load factor of 91 per cent, reinforcing its strong market position and operational excellence.
"In a major move to further strengthen its financial position and support its growth plans, SpiceJet has already initiated the process of raising Rs 3,000 crore through a Qualified Institutional Placement (QIP), which is expected to be completed by the end of September 2024," the airline also said.
"This fresh infusion of funds will be pivotal in enabling the airline to expand and unground its fleet, enhance operational capabilities, settle liabilities and improve its overall market competitiveness. These funds will stabilise the overall operations and allow expansion," the release further added.
Ajay Singh, Chairman and Managing Director at SpiceJet, said, "The upcoming Rs 3,000 crore fundraise through QIP will be instrumental in reinforcing our financial foundation and positioning SpiceJet for sustained success. We believe in the resilience of our business model and remain committed to providing our customers with the best flying experience possible."
The quarterly results were announced post-market hours today. Earlier in the day, SpiceJet shares fell 2.50 per cent to settle at Rs 55.03.
Bourses BSE and NSE have put the securities of SpiceJet under the long-term ASM (Additional Surveillance Measure) framework. Exchanges put stocks in short-term or long-term ASM frameworks to caution investors about high volatility in share prices.