SpiceJet Shares Slump Over 14% As Q1 Loss Widens
Shares of SpiceJet Ltd. slumped the most in 11 months after the budget carrier reported losses in the quarters ended March and June on high jet fuel prices and a depreciating rupee.
The airline posted a loss of Rs 789 crore in the first quarter of fiscal ending March 2023 against a Rs 458-crore loss in the fourth quarter of FY22. Excluding forex loss of Rs 369 crore, the Q1 loss amounts to Rs 420 crore.
The company had delayed the announcement of its financial results for both quarters due to disruptions caused by a ransomware attack in May.
“The industry has been witness to one of the most severe operating environment in the recent past which impacted the progress and recovery made in Q3 FY22. Record-high ATF prices and depreciating rupee were the major contributors," Ajay Singh, chairman and managing director, said.
He said the company is "optimistic" about the future and the board has mandated fresh capital issuance. "The company will be shortly engaging with investment bankers for a potential raise of up to $200 million (Rs 1,590 crore)."
Shares of the company fell as much as 14.6%, before paring some losses to trade 6.2% lower at Rs 43.4 apiece. The stock closed 3.2% lower on Thursday.
Of the 10 analysts tracking the company, two maintain a ‘buy', and four each suggest a ‘hold' and a ‘sell', according to Bloomberg data. The 12-month consensus price target implies a 35.6% downside.
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