Friday, May 20, 2016

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SpiceJet Hits Ground Despite Strong Q4 Results ; stock slips nearly 10%


SpiceJet BSE -6.73 % slipped nearly 10 per cent in morning trade on Friday after the airliner reported a net profit of Rs 73 crore for the quarter ended March 31, which came in slightly below analyst estimates largely on account of one-time expense. 

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Analysts on an average were anticipating a net profit of Rs 148 crore for the January-March quarter and an Ebitda growth of Rs 170 crore, according to Prabhudas Lilladher estimates.

At 10:00 am; SpiceJet was trading 6.4 per cent lower at Rs 74.45. It hit a low of Rs 72 and a high of Rs 78.40 so far in trade today.

The budget airline reported a one-time expense of Rs 173 crore on stabilisation and reliability of its fleet which led to reduction in net profit.

After this one-time expense, the airline will only have three outstanding claims of about $60 million (about Rs 203 crore), of which two involving $30 million are currently under negotiations,

SpiceJet reported operating revenue of Rs 1,475 crore for the quarter, a growth of 86 per cent over the year-ago period. On Ebitda basis, SpiceJet reported a profit of Rs 146 crore compared with a profit of Rs 80 crore reported for the year-ago period. 
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