SpiceJet reports lower net profit at Rs 94.4 cr on MAT impact

Our Bureau New Delhi | Updated on January 27, 2011 Published on January 27, 2011

Delhi-based low-cost airline SpiceJet has reported a net profit of Rs 94.4 crore for the quarter ended December 2010, lower than the Rs 108.95 crore net profit reported during the same period previously.

This is the fifth successive quarter that the airline has reported a profit, even as it pegged a MAT (Minimum Alternate Tax) impact of Rs 23.5 crore for the quarter. “The net profit is not really a dip. We have had to pay MAT this year, which we did not last year,” the Chief Executive Officer, Mr Neil Mills, told Business Line.

The airline reported a 33 per cent growth in number of passengers in the quarter ended December 2010, compared to the same period in the previous year, while it recorded a 28 per cent increase in revenue from operations.

SpiceJet's Rs 10 shares fell 7.3 per cent on the BSE to close at Rs 68.70.

Fuel expenses

For the quarter ended December 31, 2010, the airline's fuel expenses were Rs 311.49 crore, compared to Rs 207.83 crore reported during the same period in the previous year — an increase of almost 50 per cent. The airline CEO said that the combination of increase in prices of aviation turbine fuel and number of flights operated by the airline saw the fuel bill increase.

KAL Airways Private Ltd and Mr Kalanithi Maran are the promoters of the company with 38.61 per cent of the current paid-up capital. KAL Pvt Ltd is promoted by Mr Maran and his wife, Ms Kavery Kalanithi and was incorporated in May last year.

“We are pleased that the yields in the market remained stable despite an 11 per cent increase in the market domestic seat capacity. We remain optimistic about the growth in domestic passenger traffic during the next 12-18 months and expect the industry will grow in the 14-16 per cent range,” Mr Mills said.

The airline has a fleet of 25 new generation Boeing 737 aircraft and operates 169 daily flights connecting 20 cities within the country.

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Published on January 27, 2011
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