(VOR News) – SpiceJet achieved a net profit of Rs 119 crore for the fourth quarter concluded on March 31. The company made this announcement on Monday.
Compared to the Rs 17 crore it had registered for the same period last year, this amount signifies a six-fold rise. The airline declared that its profit for the reported quarter was 386 crore, up from the 344 crore it achieved for the fourth quarter of FY23, based on EBITDA.
The financially troubled airline released its third- and fourth-quarter fiscal year 2024 figures on Monday. As to the announcement, SpiceJet recorded a deficit of Rs 301.45 crore for the December quarter, in contrast to a profit of Rs 106.82 crore during the same time in FY23.
A regulatory filing states that the revenue from operations for the fourth quarter of fiscal year 24 was 1,719.37 crore, a 20% drop from the $2,144.85 crore of revenue for the same period in fiscal year 23.
SpiceJet recorded a post-tax loss of Rs 409 crore for the fiscal year that ended on March 31, 2024, as opposed to the net loss of Rs 1,503 crore that it reported for the fiscal year that ended on March 31, 2023. This decline is a noteworthy fall of almost 73%.
The fourth quarter net profit for fiscal year 2024 jumped by a factor of six to 119 crore as compared to the same period in the previous fiscal year. We are happy to share this outcome.
Ajay Singh, Chairman and Managing Director of SpiceJet, said, “The results are a reflection of our unrelenting efforts to improve operational efficiency and our dedication to reversing the firm’s fortunes.”
In January of this year, SpiceJet received in-principle clearance from the Bombay Stock Exchange (BSE) for a fund infusion of 2,242 crores of Indian rupees.
SpiceJet also raised 1,060 crores in two tranches using preferential issuance.
We firmly think that SpiceJet is in a wonderful position to soar to even higher heights in the upcoming fiscal quarters.
“As we move forward, we are investigating the possibility of acquiring new funds in order to further strengthen our expansion strategies and capitalize on the growing demand in the Indian aviation market,” stated Singh.
The airline, whose financial issues with its former promoter and aircraft lessors have often put it in the news, declared that it has reached a settlement agreement with Export Development Canada (EDC) for $22.5 million to settle $90.8 million (INR 755 crore) in liabilities.
We were said to have settled liabilities totaling more than fifty million dollars with a number of lessors.
In compliance with Section 9 of the Insolvency and Bankruptcy Code, 2016, several lessors of engines and aircraft have filed applications claiming that they were unable to make payments.
The airline has said that the amounts being sought are not debts and that it is embroiled in several disputes on the matter.
Therefore, SpiceJet is preventing these problems from occurring.
“The management is of the opinion that there are SpiceJet fair chances of having a favorable outcome for the company,” it said.
“This conclusion is based on the review of applications that have been submitted as well as the legal interpretation of the law, which is supported by the opinions of legal representatives.”
As on December 31, 2023, the company’s net loss (after comprehensive income) for the quarter and nine months that ended on that date was Rs 300 crore and Rs 523 crore, respectively. Furthermore, the company had a negative net worth of Rs 3,322 crore and negative retained earnings of Rs 7,939 crore as of that date.
“Adjustments on account of implementation of Ind AS 116, adverse foreign exchange rates, operational disruption during Covid 19, followed by sub-optimal operations due to liquidity constraints faced by the company,” stated SpiceJet. “These factors have been the primary drivers of losses over the course of the past few years.”
The statement went on to say that the company has chosen to defer payments to several different partners due to its current operating and financial circumstances.
SOURCE: TNIE
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