SpiceJet Q2 net profit jumps to Rs 105 crore

New Delhi: SpiceJet on Monday posted a 79 percent rise in net profit at Rs 105.28 crore for the three months ended September, primarily on the back of higher passenger revenues as the airline stayed profitable for the eleventh straight quarter.

The no-frills airline recorded a higher total income of Rs 1,838.49 crore in the second quarter of the current fiscal.

The airline's net profit climbed to Rs 105.28 crore in the latest September quarter from Rs 58.91 crore in the year- ago period, according to a filing to the stock exchange.

This is also the carrier's highest ever second quarter profit.

It had a total income of Rs 1,415.83 crore in the same period a year ago.

"The company witnessed a 7 percent increase in its passenger yields (Revenue per Available Seat Kilometre) while its average load factor across the network was 93.1 percent," the filing said.

The airline has registered more than 90 percent load factor for 30 successive months, it added.

"This has been yet another great quarter for us... Every quarter SpiceJet has a story which further underscores our extraordinary turnaround," SpiceJet CMD Ajay Singh said.

"Even with eleven successive profitable quarters, path- breaking initiatives, record aircraft orders and exploring new growth avenues through UDAN, I can say that we have just begun," he noted.

The government's ambitious regional connectivity scheme UDAN (Ude Desh ka Aam Naagrik) seeks to connect unserved and under-served airports as well as make flying more affordable.

In the 2017 September quarter, the carrier launched its fourth daily flight under UDAN on the Jaisalmer-Jaipur route.

SpiceJet has also confirmed the latest order for up to 50 Bombardier Q400 planes.

"Upon delivery, the airline may become the first in the world to operate a 90-seat turboprop, after certification by regulatory authorities," the airline said.

SpiceJet said it has paid Rs 17.85 crore representing Integrated Goods and Services Tax (IGST) "under protest" on overseas repairs and replacement of various aircraft equipment, which in the opinion of management and legal advise obtained, is not subject to such levy.

About the litigation with erstwhile promoters Kalanithi Maran and KAL Airways, the filing said arbitration proceedings are going before a three-member arbitral panel.

The matter pertains to the airline, in earlier years, receiving Rs 579.09 crore from the two as advance money towards proposed allotment of certain securities to be adjusted at the time of issuance.

The erstwhile promoters have made various claims against the company and Singh "citing various purported breaches/ non-compliances with the terms of the share sale and purchase agreement dated January 29, 2015", the filing said.

"The company and the current promoter have disputed all such claims... The arbitration is currently in progress and the final outcome of the matter is currently not ascertainable," it added.

According to the company, management is of the view that any possible consequential effects, including penal consequences and any compounding thereof, would not have a material impact on the financial results.

"As at September 30, 2017,the company has total equity of (Rs 3,326.8 million), including accumulated losses of Rs 19,250.1 million. As of that date, the company's total liabilities... Exceed its total assets by Rs 3,326.8 million," the filing said.

Shares of the company rose over 4 percent to close at Rs 149.10 apiece on the BSE today.