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SpiceJet share price tanks 12% after net loss widens in Q1

SpiceJet share price tanks 12% after net loss widens in Q1

The company’s business operations were significantly hit due to the continued impact of Covid-19 which has had seriously impacted travel demand during the quarter ended June 2021

SpiceJet share price tanks 12% after net loss widens in Q1 SpiceJet share price tanks 12% after net loss widens in Q1

Shares of SpiceJet declined 12 per cent to hit an intraday low of Rs 63.55 on BSE after the company's net losses widened in the quarter ended June 2021.
 
The company reported a net loss of Rs 731 crore for the quarter ended June 2021 compared to a loss of Rs 600.5 crore in the year-ago period. Revenue from operations more than doubled to Rs 1,125 crore in the June-ended quarter against Rs 521 crore a year ago.
 
The stock opened 0.3 per cent lower at Rs 71.75 against the previous close of Rs 71.90. With a market capitalisation of Rs 4,155.35 crore, the share stands lower than 5 day, 10 day, 20 day, 50 day, 100 day, and 200-day moving averages.
 
The company’s business operations were significantly hit due to the continued impact of Covid-19 which has had seriously impacted travel demand during the quarter ended June 2021.
 
Ajay Singh, Chairman and Managing Director, SpiceJet, said, “The last five quarters have been the most difficult phase ever for SpiceJet as aviation remained the worst-hit sector during the second wave as well. Q1 was severely impacted by the second wave as passenger traffic almost disappeared. While no one can predict the future, with vaccination numbers picking up and demand for air travel increasing steadily, we hope the trend reverses soon."
 
"I am confident that SpiceJet will recover lost ground quickly as we are continuously ramping up our operations adding new stations and flights and are much better placed than this time last year. Our logistics arm continued with its strong growth story reporting yet another profitable quarter. We are making efforts to further strengthen the logistics business and are hopeful of driving strong and profitable growth in the times to come," he noted.
 
“We are in the process of hiving off our logistics platform, SpiceXpress, which will unlock significant value for SpiceJet and its shareholders. This will also allow SpiceXpress to raise capital to fuel its rapid growth," he added.
 
According to MarketsMojo, the technical trend has deteriorated from Mildly Bullish on 12-Aug-21 and the stock is technically in a Mildly Bearish range right now.
 
It noted that the company has declared negative results for the last 6 consecutive quarters and 44.31% of promoter shares are pledged. In falling markets, high promoter pledged shares put additional downward pressure on the stock prices.
 
SpiceJet launched 74 new flights during the quarter. The airline operated more than 300 charters transporting over 52,000 passengers across the globe.
 

 

Published on: Aug 16, 2021, 1:31 PM IST
Posted by: Tanya Aneja, Aug 16, 2021, 1:29 PM IST