Low-cost carrier SpiceJet recorded a 79 per cent rise in net profit to Rs 105.28 crore during the July-September quarter of the current financial year making it the eleventh consecutive profitable quarter for the airline which was at one point on the verge of closure.
Driven by higher passenger revenues, SpiceJet's total income for the quarter stood at Rs 1,838.49 crore up from Rs 1,415.83 crore in the same period a year ago, according to a stock exchange filing. This is also the carrier's highest ever second quarter profit.
The company witnessed a 7 per cent increase in its passenger yields (revenue per available seat kilometre) while its average load factor across the network was 93.1 per cent, the filing said.
The airline has registered more than 90 per cent 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," said SpiceJet CMD Ajay Singh.
As of September 30, 2017, the company has total equity of Rs 332.7 crore, including accumulated losses of Rs 1,925 crore. As of that date, the company's total liabilities... exceed its total assets by Rs 332.7 crore.
The filing also said arbitration proceedings in the litigation with erstwhile promoters Kalanithi Maran and KAL Airways are going on before a threemember arbitral panel. The dispute is over the airline, in its earlier years, receiving Rs 579.09 crore from the two as advance towards a 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.
UDAN (Ude Desh ka Aam Naagrik) is the government's regional connectivity scheme to connect unserved and underserved airports as well as make flying more affordable. During the quarter under review, SpiceJet launched its fourth daily flight under UDAN on the JaisalmerJaipur route.
SpiceJet 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 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.
Shares of the company rose over 4 per cent to close at Rs 149.10 apiece on the BSE. According to the company, the management feels that any possible consequential effects, including penal consequences and any compounding thereof, would not have a material impact on the financial results.
"Even with eleven successive profitable quarters, pathbreaking initiatives, record aircraft orders and exploring new growth avenues through UDAN, I can say that we have just begun," Ajay Singh said.