SpiceJet April-June net profit falls 10 per cent to Rs 50.55 cr

Spicejet has reported a 10 per cent decline in net profit for the first quarter ended June 30.

The low-cost airline has reported a profit of Rs 50.55 crore for the April-June period against Rs 56.15 crore in the year-ago period.

In a filing to the Bombay Stock Exchange, SpiceJet said its total income from operations increased to Rs 1,704.30 crore in the quarter under review from Rs 1,466.69 crore during the same period last year.

"The overall performance should be considered satisfactory and has to be viewed in the context of several adverse circumstances that continue to make the business environment for the airline industry extremely challenging," the company added. "Notwithstanding the several headwinds in the form of weak rupee and high cost of fuel, the management has executed with an emphasis on efficiency, elimination of waste and profitability."

The statement also said better realisations from overseas routes that now make up almost 11 per cent of revenues helped bring down fuel cost as a proportion of the total revenue to 43 per cent in the current quarter, against 46 per cent in the comparable quarter for the previous year.

However, currency depreciation and higher crude prices continue to exert pressure on margins, it noted.

SpiceJet shares were trading near flat 30 minutes before close of trade at Rs 25.80.

With inputs from PTI