SpiceJet share price gains over 12% after Q3 numbers

The shares of SpiceJet settled 12.31% higher at ₹39.70 apiece on BSE. However, the airline stock has declined more than 40% in a year’s period.

SpiceJet said its profit rose to ₹110 crore for the three months ended 31 December, 2022, from ₹42.46 crore in the year-ago quarter, which was impacted by a one-off expense related to a settlement with an aircraft manufacturer.

The airline’s total revenue from operations surged 2.5% to ₹2,315 crore.

“Despite a big jump in passenger traffic, business continued to be impacted by high fuel prices and depreciating rupee,” the airline said in a filing.

The profit has been driven by a strong performance in both the passenger and cargo businesses, SpiceJet said.

“There are renewed signs of recovery and some very positive developments and restructuring initiatives in the immediate offing that would significantly strengthen and de-leverage our balance sheet,” Ajay Singh, chairman and managing director, said.

Earlier on Tuesday, the company in an exchange filing informed that the board will consider issuing equity shares on a preferential basis in a board meet on Friday, 24 February, 2023 and mull conversion of outstanding liabilities. The company will also consider raising fresh capital via issue of securities to qualified institutional buyers.

“This is to inform you that the Board of Directors of the Company in its meeting scheduled to be held on February 24, 2023 (Friday), will discuss and consider, inter-alia, issuance of equity shares on preferential basis consequent upon conversion of outstanding liabilities into equity shares of the Company, subject to applicable regulatory approvals,” the domestic airline, SpiceJet informed in an exchange filing.

The company is likely to sell a 5% stake in the airline to its largest lessor US-based Carlyle Aviation Partners, said people aware of the development, Mint had reported yesterday.

The airline had been in discussions with strategic investors since last year for a stake sale to bring in funds. Under the proposed deal, Carlyle is expected to convert over $100 million of outstanding dues into equity in SpiceJet and compulsorily convertible debentures (CCDs) in the cargo arm SpiceXpress, Mint reported.

The proposed deal has valued SpiceJet’s logistics subsidiary SpiceXpress at over $1 billion in deal with Carlyle.