SpiceJet on Tuesday reported a net profit of ₹71.8 crore for the first quarter of 2015-16. The airline had reported a net loss of ₹124.1 crore for the same quarter last year.
This is the second consecutive profitable quarter for the airline, which reported a net profit of ₹22.5 crore in the fourth quarter of 2014-15.
“I am proud of what we have achieved. But there is still a long way to go,” said airline’s chairman Ajay Singh, in a statement.
SpiceJet reported positive earnings before interest, taxes, depreciation, and amortisation (EBIDTA) of ₹287.5 crore (against a negative ₹43.1 crore last year). This was thanks to a 42 per cent dip in costs at ₹1,035.61 crore in the June quarter against ₹1,782.94 crore.
The airline recorded a load factor of 89.8 per cent, a 14.8 per cent increase over the same period last year. It carried 2.70 million passengers during the first quarter (3.57 million passengers).
Explaining the decline in passenger numbers, an airline official said that there was a 33 per cent decrease in the fleet, which resulted in a drop of about 32 per cent in the number of passengers carried.
“We have made significant improvements in our cash flows and liquidity position, and have been discharging our obligations on time. We are no longer under financial stress. During this quarter, we have re-inducted an aircraft that had previously been returned and are in discussions to re-induct a few more, which reflects renewed lessor confidence in SpiceJet,” said CFO Kiran Koteshwar. In its notes to the results given to the BSE, SpiceJet said that as on June 30 this year its total liabilities exceeded total assets by ₹1,442.8 crore.
“These conditions, along with other matters… indicate the existence of a material uncertainty that may cast significant doubts about the company’s ability to continue as a going concern,” Chartered Accountants SR Batliboi and Associates said in their Limited Review Report of the results.
On Tuesday, SpiceJet shares closed at ₹26.60 on the BSE, up 5.77 per cent from Monday’s closing.