SpiceJet’s Q4 net profit up 225 percent

Mumbai, May 19 (IANS) Budget passenger carrier SpiceJet on Thursday reported a rise of 225.09 percent in its net profit for the fourth quarter (Q4) of 2015-16.

According to the low cost carrier (LCC), its net profit stood at Rs.73.18 crore for the quarter ended March 31, 2016, from Rs.22.51 crore in the corresponding quarter of 2014-15.

The company reported the rise in its quarterly net profit despite taking an one-time expense of Rs.173 crore towards stabilising and improving the reliability of it's fleet.

"We had inherited a deeply distressed company last year. We are delighted that we have made significant progress both financially and operationally, have significantly strengthened our balance sheet," said Ajay Singh, chairman and managing director, SpiceJet was qouted in a company statement as saying.

"By taking the onetime expense, we have now accounted for all legacy issues and are ready to start on a clean slate with even greater confidence."

The airline's total income from operations for the quarter under review increased by 86.49 percent to Rs.1,474.98 crore from Rs.790.90 crore in the corresponding quarter of 2014-15.

The company's total expenditure during Q4, 2015-16 too, rose by 64.30 percent to Rs.1,460.38 crore from Rs.888.82 crore for the quarter ended March 31, 2015.

Expenditure-wise, fuel cost which constitutes a major part of the total operating cost edged-up by 14.82 percent to Rs.328.66 crore from Rs.286.22 crore in the corresponding quarter of the previous fiscal.

Aircraft lease rentals which forms another major cost element during Q4, 2015-16 increased by 114.42 percent to Rs.247.40 crore from Rs.115.38 crore during the quarter ended March 31, 2015.