Qatar Airways May Invest In Spicejet
May 22 14
Qatar Airways Limited is likely to invest in SpiceJet Limited (BSE:500285) by purchasing its parking slots overseas, the Press Trust of India reported on May 22, 2014. PTI said the state-run Qatar Investment Promotion Authority are likely to meet SpiceJet shortly, citing unnamed sources. On May 20, 2014, SpiceJet said, "the company is “in very advanced stages of a capital infusion discussion with an external entity” adding that when completed will help the airline to clean up arrears and rebuild with confidence." SpiceJet in a statement of May 20, 2014 also said that it would be “going after cost optimization on a war footing now”, without giving details. When contacted by PTI, a SpiceJet spokesperson said, "We do not comment on market speculation."
SpiceJet Is In Advance Discussions To Raise Funds
May 20 14
SpiceJet Limited (BSE:500285) has now inched closer to get investment. A spokesperson, while confirming the development, told Financial Express in an e-mailed response: "We are in an advanced stages of a capital infusion discussion with an external entity — that when completed will help us clean up our arrears and rebuild with confidence." The spokesperson said the fact was that the past nine months have been some of the worst for the Indian aviation industry. "Economy slowed significantly, demand growth fell sharply, the exchange rate plummeted, raising our costs by about 20%, and load factors fell," the spokesperson said. SpiceJet had posted a whopping INR 10.03 billion loss as against INR 1.91 billion in the previous fiscal and the company's total liabilities exceeded its total assets by INR 10.19 billion. According to aviation experts, SpiceJet is in need of at least INR 12 billion funds to be able to fly in the skies without difficulties. According to the spokesperson, the airline's restructuring plan in terms of overall revenue and cost strategy is only just starting to take the desired effect. According to a company note, Kalanithi Maran continues to provide the required financial support.
SpiceJet Limited Reports Audited Earnings and Traffic Results for the Fourth Quarter and Full Year Ended March 31, 2014
May 17 14
SpiceJet Limited reported audited earnings and traffic results for the fourth quarter and full year ended March 31, 2014. For the quarter, the company reported net sales/income from operations of INR 15,734.05 million compared to INR 143,774.7 million a year ago. Loss from operations before other income, finance cost and exceptional items was INR 3,182.10 million compared to INR 1,866.93 million a year ago. Loss before tax was INR 3,215.10 million compared to INR 1,857.19 million a year ago. Net loss was INR 3,215.10 million or INR 6.01 per basic and diluted share against INR 1,857.19 million or INR 3.83 per basic and diluted share a year ago.
For the year, the company reported net sales/income from operations of INR 63,042.33 million compared to INR 56,006.78 million a year ago. Loss from operations before other income, finance cost and exceptional items was INR 9,475.75 million compared to INR 1,935.76 million a year ago. Loss before tax was INR 10,032.44 million compared to INR 1,910.76 million a year ago. Net loss was INR 10,032.44 million or INR 19.16 per basic and diluted share against INR 1,910.76 million or INR 3.95 per basic and diluted share a year ago.
For the quarter, SpiceJet's market stimulation and revenue management approach in the latest quarter helped it to increase year-over-year RASK despite adverse market conditions. Unit revenue (RASK or revenue per available seat kilometer) in the quarter ended March was 5% higher, and unit cost (CASK) 12% higher, than comparable period last year. Normalized for exchange rate, the CASK would have been only 2% higher. The company reported 5% growth in available seat kilometers, 2% growth in number of departures and 6% decline in number of passengers.
For the year, the company reported 16% growth in available seat kilometers, 11% growth in number of departures and 6% growth in number of passengers.