SpiceJet hits 11-month low; down 21% in one month

A domestic SpiceJet aircraft is seen off the runway after it skidded off into the unpaved surface during heavy rains in Mumbai.
Shares of SpiceJet hit an 11-month low of Rs 108, down 4%, extending its past two days fall of 5% on the BSE after the company reported a lower than expected net profit and operating profit or the EBITDAR in March quarter (Q4FY18), due to higher crude oil prices. The stock is trading at its lowest level since June 7, 2017.

In Q4FY18, the company reported consolidated net profit of Rs 405 million, lowest in last four quarters, against analyst estimate of Rs 723 million. Consolidated revenue up 25% to Rs 20.29 billion from Rs 16.26 billion in the corresponding quarter of previous fiscal.

“In Q4, there was an increase of 12.7 % in crude oil prices that impacted the bottom line by approximately Rs 814 million. The Company registered an 8% increase in yield which helped in maintaining operational profits,” SpiceJet said in a press release.

In past one month, the stock underperformed the market by falling 21% as compared to 3.8% rise in the S&P BSE Sensex.

SpiceJet would start receiving Boeing737-8Max and regional Bombardier planes from Q3FY19. The company gives guidance of induction of 19 Boeing 737 Max aircraft in FY19 which are 8-9% fuel efficient. Company also guides about induction of 8 new generation Q400s regional aircrafts with additional capacity in FY19, and thus will improve operating economics of this aircraft by 15-18%,” analysts at Elara Capital said in quarterly update.

The stock had a strong run-up in past three years, surging 506% against 29% rise in the benchmark index.