SpiceJet Ltd.'s profit for the quarter ended March rose despite the grounding of 13 Boeing 737 Max 8 flights in its fleet.
The low-cost airline reported a net profit of Rs 56 crore, a 22 percent increase from the year-ago period, according to its stock exchange filing. That compares with the analysts' estimate compiled by BloombergQuint, which pegged the figure at Rs 115 crore.
Revenue rose 25.3 percent year-on-year to Rs 2,531 crore. Analysts had pegged the metric at Rs 2,601 crore.
SpiceJet grounded its Boeing Max 8 planes in the January-March period after a similar plane operated by Ethiopian Airlines crashed in March, killing all 157 passengers on board.
The airline reported a net loss of Rs 316.1 crore for the year ended March. The carrier's Chairman and Managing Director Ajay Singh expressed confidence over a strong performance in the ongoing fiscal. “With a massive fleet expansion this fiscal, a favourable operating environment, a likely return of the Boeing 737 Max in July, significant improvements in yields and prime slots at key airports, we're confident of a strong performance for 2019-20,” he was quoted as saying in the exchange filing.
The company expects compensation from Boeing due to the 737 Max flight ban in the current fiscal, Chief Financial Officer Kiran Koteshwar told Bloomberg, adding that they were informed of a “possible 737 Max return timeline”. Koteshwar also said the low-cost carrier would add 15-25 more 737 Max jets in the ongoing fiscal.
Other Highlights (YoY):
- Operating profit rose 39 percent to Rs 511 crore on a yearly basis. The consensus estimate was Rs 558 crore.
- Operating margin expanded 199 basis points to 20.19 percent. Analysts had forecast 21.5 percent.
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