SpiceJet's Net Profit Soars Sixfold To INR 119 Crore In Q4 FY24

Budget carrier SpiceJet has reported a significant increase in net profit for the fourth quarter ending 31 March 2024, with earnings surging sixfold to Rs 119 crore, compared to Rs 17 crore in the same period last year. On an Ebitda basis, the profit for the reported quarter reached Rs 386 crore, up from Rs 344 crore in Q4 FY23.

The latest quarterly results of Q4 FY2024 show a remarkable surge in net profit, reaching Rs 119 crore, a sixfold rise from Rs 17 crore in Q4 FY2023. Despite facing challenges such as a 10 per cent increase in aviation turbine fuel (ATF) prices and a two per cent depreciation of the Indian Rupee against the US Dollar, the company recorded significant growth in Ebitda and Ebitdar. Notably, the airline completed a capital infusion of Rs 1,060 crore and settled significant liabilities, which contributed to improving its financial health.

In more detail, the company saw its Ebitda rise to Rs 386 crore in Q4 FY2024, a jump from Rs 344 crore in the same quarter last year. Ebitdar also increased to Rs 616 crore, up from Rs 515 crore. The airline achieved one of the highest Passenger Load Factors in the industry, hitting 92 per cent.

On the operations side, the airline successfully handled Haj operations from seven cities across India and expanded its international footprint by adding Phuket, Thailand, as new destinations after Bangkok. These moves helped bolster their market presence and revenue streams.

For the fiscal year, the company managed to narrow its losses by a substantial 73 per cent. It reported a post-tax loss of Rs 409 crore, a significant improvement from last year’s Rs 1,503 crore loss. This turnaround was possible thanks to achieving an Ebitda of Rs 772 crore, compared to a negative Rs 33 crore the previous year. Ebitda saw impressive growth, reaching Rs 1,410 crore from just Rs 342 crore in FY2023.

The airline also reported the highest load factor in the industry for domestic flights, maintaining a robust 92 per cent. Improvements in Revenue per Available Seat Kilometer (Rask) by eight per cent, driven by a seven per cent increase in yield and a one per cent uptick in load factor, showcased the company's operational efficiency.

Adding to the financial improvements, the airline enhanced its net worth by Rs 646 crore, showing a 20 per cent improvement compared to the previous year. Overall, the company’s strategic moves, efficient operations and financial prudence have steered it towards a brighter future.

Ajay Singh, Chairman and Managing Director of SpiceJet, expressed optimism about the company’s future, stating, "We are pleased to announce a strong financial performance in Q4 FY2024, with net profit surging sixfold to Rs 119 crore compared to the same quarter last year. The results reflect our relentless efforts to enhance operational efficiency and our commitment to turning around the company's fortunes. We are confident that SpiceJet is well-positioned to soar even higher in the coming quarters. As we move forward, we are exploring opportunities to raise fresh funds to further bolster our growth plans and take advantage of the burgeoning demand in the Indian aviation market. With our robust strategy and dedicated team, we will continue to soar to new heights and create value for our stakeholders."