SpiceJet'S scrip surges 12 percent on quarterly earnings

Indo Asian News Service

Mumbai, Aug 18 (IANS) Budget airline SpiceJet Monday reported a jump of 11.69 percent in its share price after the company came out with its first quarter earnings.

The company's scrip at the Bombay Stock Exchange (BSE) was up 11.69 percent or 1.40 points around 1.30 p.m. at Rs.13.38 from its previous close of Rs.11.98 on Thursday (Aug 14 2014).

The scrip touch an intra-day high of Rs.13.60 and a low of Rs.11.46 percent in the day's trade so far.

According to market analysts, the surge in the low cost carrier's (LCC) stocks came after it reported Rs.9 crore as operating profit for the first quarter of the current financial year.

"SpiceJet achieved an operating profit of Rs.9 crore for the quarter (not considering restructuring and certain one-off costs described below) despite an adverse year-over-year impact on expenses of fuel price and foreign exchange rate of Rs.106 crore," the company said in a statement.

However, the budget carrier posted a net loss of Rs 124.10 crore for the first quarter of the current fiscal, down from a net profit of Rs.50.56 crore in the corresponding period of last year.

The company said that during the quarter it incurred restructuring and certain one-off costs consisting of Rs.133 crore relating to restructuring of the network and fleet along with capacity rationalisation that required early aircraft lease terminations and associated expenses for four aircraft.