Business
Debt-laden SpiceJet’s Q4 FY24 net Profit increased Sixfold to Rs 119 Crore.
(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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Business
Subsidies for Electric Vehicles Cut as Consumer Interest Fades
Pressure is building on Canada’s electric vehicle manufacturers, and several are rethinking their stance on E.V.s in favor of plug-in hybrids. Automobile manufacturers are now bracing themselves for an even more challenging era in the Canadian market for electric vehicles (E.V.s).
President Kristian Aquilina of General Motors Canada claims that support and expectations are misaligned because the Canadian government is reducing subsidies for electric vehicles while trying to phase out gas-powered cars.
Manufacturers find pushing for an all-electric future in Canada increasingly difficult due to fewer consumer financial incentives and increasingly strict sales targets.
With subsidies totaling up to C$12,000 (about $8,500), Canadian consumers may save a tonne of money on electric automobiles. The federal government offers a rebate of up to $5,000 Canadian, and the provinces of Quebec and British Columbia provide further incentives of up to $7,000 and $4,000, respectively.
Ontario, which eliminated rebates in 2018, had the lowest market share for electric vehicles compared to Quebec and British Columbia, two regions that offered bigger incentives and thereby drove E.V. adoption in Canada.
Although this backing is dwindling, the province of Quebec has now declared that all subsidies will end in 2027. In June, the British Columbia government restricted incentives to a smaller subset of E.V. purchasers for “available funding” and higher-than-expected E.V. sales growth.
These reductions indicate a larger pattern: provincial governments reevaluate the sustainability of taxpayer-financed incentives for E.V.s as budget deficits widen.
With lofty goals to cut pollution from gas-powered cars and increase sales of electric vehicles, the Canadian government has reduced subsidies for these vehicles. Electric or plug-in hybrid vehicles will be mandatory for all new light-duty vehicle sales in Canada by 2035.
To meet our intermediate goals, 20% of new sales must be electric vehicles (E.V.s) by 2026 and 60% by 2030. Car companies are already under a lot of pressure due to dwindling incentives and increasing demands, and the clock is ticking faster by the second.
In addition, these rules impose new forms of responsibility. Automakers that do not reach their provincial sales targets may be subject to financial fines imposed by provinces such as British Columbia.
Canadian manufacturers are already under financial pressure from federal compliance credit system standards, which they must meet or face deficits. This system gives them credit for electric vehicle sales and infrastructure improvements, but it’s not without its challenges.
“The timing is not necessarily lining up very well, in that the purchase incentive support comes off just as mandates and regulations start to bite,” GMC Canada President Kristian Aquilina told Bloomberg. “It must make a difference.
Therefore, we must consider that. Despite the cutbacks, Aquilina argued that the government’s investment in enhancing the charging infrastructure could benefit E.V. sales.
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Business
Chewy Slides After Filing Shows 3rd-Biggest Shareholder, ‘Roaring Kitty,’ Sold His Stake
Washington — Chewy shares fell about 2% overnight Wednesday after a regulatory filing showed that Roaring Kitty, a meme stock trader, sold his interest in the online pet retailer.
According to a beneficial ownership document filed with the Securities and Exchange Commission on Tuesday, Roaring Kitty, whose legal name is Keith Gill, sold all his Chewy shares, totaling 6.6% of the company.
Chewy Slides After Filing Shows Third-Biggest Shareholder, ‘Roaring Kitty,’ Sold His Stake
Plantation, Florida-based Chewy dropped 1.9% after hours to $26.19 per share.
Gill, an investor at the core of the meme stock craze, bought more than 9 million shares of Chewy in July, making him the company’s third-largest stakeholder.
Gill built a name for himself in 2021 by rallying ordinary investors around GameStop. At the time, the video game shop was fighting to stay in business, and major Wall Street hedge funds and investors were betting against it or shorting the stock. But Gill and those who agreed with him altered GameStop’s direction by purchasing thousands of shares despite practically all acknowledged criteria indicating that the firm was in deep peril.
Chewy Slides After Filing Shows Third-Biggest Shareholder, ‘Roaring Kitty,’ Sold His Stake
That triggered what is known as a “short squeeze,” in which large investors who had bet on GameStop were obliged to buy its swiftly increasing stock to offset significant losses.
Gill has expressed confidence in GameStop Chairman and CEO Ryan Cohen’s ability to revamp the company following his success at Chewy. Cohen cofounded Chewy in 2011 and stepped down as CEO in 2018.
SOURCE | AP
Business
Canada CBC News CEO Catherine Tait Recalled to Parliamentary Committee
Canada CBC News reports that MPs have voted to recall CBC CEO Catherine Tait to a Commons committee for questioning, only a week after her last appearance, over the awarding of $18 million in bonuses to Canada CBC news executives.
The Conservatives, the Bloc Québécois, and the NDP joined forces to re-invite Ms. Tait, her successor Marie-Philippe Bouchard, and Heritage Minister Pascale St-Onge to appear before the Commons Heritage Committee.
Ms. Tait, who will relinquish her position as CEO and president of CBC/Radio Canada in January, addressed the committee last week. The House of Commons has passed a motion recalling her before the conclusion of her term, and she is now subject to an additional two hours of interrogation, which includes inquiries regarding bonuses.
MPs also resolved to summon Quebec broadcasting executive Marie-Philippe Bouchard, appointed as the new chief of CBC/Radio-Canada last week, to appear before she begins her new job following a House of Commons chamber debate.
Catherine Tait Exit Package
Catherine Tait rejected the Conservatives’ requests to deny an exit package, including bonuses, when she departed the position in January during last week’s committee hearing.
She also defended the award of $18.4 million in incentives to 1,194 staff members for the 2023-2024 fiscal year, which concluded in March, following the broadcaster’s achievement of performance indicators.
Kevin Waugh, a Conservative committee member who introduced the motion, stated that his party aimed to ensure Ms. Tait was “accountable to taxpayers” before her departure in January.
He informed The Globe and Mail that “Canadians are dissatisfied with the bonuses” and that Catherine Tait‘s exit package, which will not be disclosed, is a cause for concern.
“I am apprehensive that she has not received her bonuses in over two years, and that the Minister of Heritage or Privy Council will lavish her with bonuses when she departs in January,” he stated.
The Liberals opposed a portion of the motion that claimed that “the Liberal threat to cut funding” had resulted in the elimination of hundreds of jobs at CBC/Radio-Canada.
Defunding CBC News Canada
The Heritage Minister informed The Globe that the claim was “hypocritical,” as the Conservatives intended to completely defund CBC.
“The Conservatives’ actions today are a clear example of hypocrisy.” Ms. St-Onge stated that performance bonuses increased by 65% during the Harper Conservatives’ tenure, while CBC News Atlantic Canada experienced substantial budget cutbacks.
“As a government, we do not require any lessons from a party that has pledged to reduce the funding of CBC/Radio-Canada and the 8,000 jobs associated with it during its campaign.”
During the Tuesday debate, NDP MP Niki Ashton stated that her party endorses the “banning of executive bonuses” at CBC News Atlantic Canada but is opposed to “the Conservatives’ full frontal attack” on the broadcaster.
She stated, “We require a robust public broadcaster, but not one that distributes executive bonuses and eliminates positions.”
If the Conservatives establish the next government, they intend to deprive the CBC of public funding while maintaining French services.
Catherine Tait defended CBC and rebuffed MPs’ assaults during last week’s committee hearing. “It is evident that the members of this committee are making a concerted effort to discredit the organization and vilify me,” she stated.
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