SpiceJet share price rises 10% on strong Q3 earnings

Shares of budget carrier SpiceJet reversed trend and rose over 10% intraday after the company  reported a 21.1% rise (YoY) in consolidated net profit to Rs 78 crore during the quarter ended December 31, 2019 as against Rs 64 crore, recorded in a year-ago period.

Following the result update, shares of SpiceJet surged 10.2 % to an intraday high of Rs 93.40 on BSE. Earlier today, ahead of Q3 report, SpiceJet shares fell 3.72% to low of Rs 81.55 on BSE.

The stock price of SpiceJet has risen 16.85% over the last one year. It has declined 0.50% in one week, 13% in one month and almost 20% year-to-date. SpiceJet stock is trading lower than 5, 20, 50, 100 and 200-day moving averages.

Volume-wise, 29.10 lakh and 139.18 lakh shares are changing hands on BSE and NSE today, both above 5,10 and 30-day average volume traded.

This profit is after a non-cash forex charge on account of IND-AS116 of Rs 75.9 crore without which the profit would have been Rs 149.1 crore, the company said in the press release.

Total income rose 46.65% (YoY) to Rs 3,656 crore in the October-December quarter of the current fiscal as compared to Rs 2,488 crore in the same period last financial year. Company's total expenses (YoY) stood at Rs 3,848 crore during the quarter ended December 31, 2019, from Rs 2,468 crore, booked in the corresponding quarter in the previous year.

The airline also recorded a 47% rise in operational revenue of third quarter to Rs 3,647.1 crore as against Rs 2,486.8 crore for the same quarter last year as the airline added more destinations and expanded its fleet of passenger and freighter aircraft.

For the quarter under review, company's expenses stood at Rs 3,844.1 crore in Q3 FY20 as against Rs 2,475.8 crore, booked during Q3 FY19. The airline reported a 47% growth in its operational income against the same quarter last year.

On an EBITDA basis, SpiceJet reported a profit of Rs 659.2 crore, while on an earnings before interest, taxes, depreciation, amortisation, and rent (EBITDAR) basis, the company's profit comes to Rs 761.6 crore.

"Despite the challenges that the airline is facing in terms of additional costs incurred, compounded by the continued grounding of its 737 MAX aircraft, the airline's capacity has grown by 59% in 2019," SpiceJet said in the BSE filing.

As per the airline's key highlights, it has added six more planes, taking its fleet size to 119, as on December 31, 2019. The airline is operating 49 daily UDAN flights. The airline added that it has recorded over 90% load factor for 56 successive months.

By Rupa Burman Roy

Share Market LIVE: Sensex up 250 points, Nifty above 2,200; YES Bank, Tata Motors, UPL top gainers

Stocks in news: SpiceJet, Vodafone, Fortis Healthcare, Glenmark Pharma, ONGC, SAIL and more