Demonetisation, higher fuel see SpiceJet Q3 net profit plunge 24% to Rs 181.1 crore

NEW DELHI: Low cost carrier SpiceJet on Tuesday reported a profit of Rs 181.1 crore in the quarter ended December 2016, down 24% from a profit of Rs 239.9 crore in the same quarter in previous fiscal. The airline said that demand in the quarter had softened “due to demonetisation.”

“Profits for the quarter were impacted by demonetisation and higher fuel prices,” the airline said. The airline recorded a load factor of 90.7% for the quarter, the highest in the industry, and had highest on time performance across metros.

“We have reported our eighth successive profitable quarter despite headwinds. Our… aircraft order signifies the end of the turnaround phase for SpiceJet and marks the beginning of a growth story. This order will help build an even stronger and more profitable airline. We will be relentless in reducing our costs and identifying new avenues for revenue generation,” said SpiceJet chairman Ajay Singh.

“The company’s total liabilities exceed its total assets by Rs 65,154.4 lakh as of December 31, 2016. These conditions… indicate the existence of a material uncertainty that may cast significant doubt about the company’s ability to continue as a going concern,” the airline’s auditor, S R Batliboi and Associates, says in its limited review.

The LCC’s total income from operations in Q3 was Rs 1,642.4 crore, up from same quarter in previous fiscal’s figure of Rs 1,459.9 crore. However, fuel cost rose to Rs 473.7 crore this Q3 over Rs 366.6 crore in Q3 FY 2016.

source”cnbc”