NEW DELHI: Low-cost carrier SpiceJet which released its full year financial results after a gap of several months, narrowed down its consolidated loss for 2023-24 (Apr-Mar) to Rs. 423 crore against a loss of Rs. 1,513 crore in the previous year. However, investors in the airline will be concerned about the performance of the topline, wherein revenue from operations declined 20% year-on-year to Rs. 7,085 crore in 2023-24.On a quarterly basis, the airline fared better in Jan-Mar, recording consolidated net profit of Rs 127 crore, against a loss of Rs 299 crore in the previous quarter and a loss of Rs 6 crore in the year ago period. Consolidated revenue from operations remained under pressure in Jan-Mar, which declined 9.1% from the previous quarter to Rs. 1,738 crore and was down 19% year-on-year.
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“We are pleased to announce a strong financial performance in Q4 FY2024, with net profit surging sixfold to INR 119 crore (standalone) compared to the same quarter last year. The results reflect our relentless efforts to enhance operational efficiency and our commitment to turning around the company’s fortunes,” said Ajay Singh, Chairman and Managing Director, SpiceJet, in a statement.
In the recently held CAPA India Aviation Summit, Singh shared that the airline is looking to raise $250 million in the coming months and gradually raise the fleet size to 100 aircraft. The reduced number of aircraft have impacted the operations of the aircraft even after the broader sector has seen recovery since the end of the pandemic.
“As we move forward, we are exploring opportunities to raise fresh funds to further bolster our growth plans and take advantage of the burgeoning demand in the Indian aviation market,” said Singh.
According to the airline, In January, it received in-principle approval from BSE for a fund infusion of Rs. 2,242 crore and has raised Rs. 1,060 crore under preferential issue in two tranches so far.
The auditor of the airline, Walker Chandiok & Co LLP, in its audit report outlined that the airline’s accumulated losses amounts to Rs. 7,939.5 crore, which have resulted in complete erosion of its net worth and the current liabilities have exceeded its current assets by Rs. 7,146.1 crore as at 31 December 2023.
On account of continued strain on finances and operations, the auditor highlighted that there remains significant doubt and ‘material uncertainty’ whether the airline will remain operational in the foreseeable future.
