SpiceJet Seeks Financial Boost Amid Profit Decline

SpiceJet reported a 27% decline in standalone profit to Rs 149.96 crore for the June quarter compared to the previous year. The airline is raising Rs 3,000 crore through Qualified Institutional Placement to stabilize operations, expand fleet, and improve market competitiveness.

SpiceJet, currently on a quest to raise funds, announced a 27% decline in standalone profit, recording Rs 149.96 crore for the quarter ending in June, compared to the same period last year.

The budget airline had posted a standalone profit of Rs 204.56 crore in the June 2023 quarter. However, the profit is an improvement from the Rs 118.99 crore reported in the preceding March quarter this year.

According to a regulatory filing, SpiceJet's total income dropped to Rs 2,067.21 crore in the first quarter of the current financial year, down from Rs 2,268.06 crore in the year-ago period. Total expenses also reduced to Rs 1,917.25 crore from Rs 2,063.49 crore last year.

Operating profit for the first quarter rose by 27% to Rs 393 crore, up from Rs 310 crore in the March 2024 quarter. With headwinds ahead, the airline plans to raise up to Rs 3,000 crore through Qualified Institutional Placement by the end of September.

This fund infusion is expected to help expand and unground the fleet, enhance operational capabilities, settle liabilities, and boost market competitiveness, according to the airline. Chairman and Managing Director Ajay Singh says the new funds will solidify SpiceJet's financial stability.

The carrier's shares fell by 2.50% to close at Rs 55.03 on the BSE.

(With inputs from agencies.)