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. 

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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Crude oil updates - “Crude oil extends Slide on Oversupply”

Crude oil futures extended a losing streak in the domestic market on Monday with prices in the international market sliding to the lowest level since 2004 as traders bet on a worsening global supply glut as producers battle for market share.

Global crude supplies are near record-highs with Iran and Libya set to flood the market with more oil whilst the US’ decision on Friday to end a 40—year ban on its crude exports also threatens to aggravate an oversupply situation.
 

With the OPEC, the cartel that makes up about 40 per cent of global crude supplies, showing no signs of cutting production, swelling global supplies are set to outpace demand in 2016.
 

A gauge of US economic activity remained in contraction for the second month on the trot in November, signaling cooling growth in the world’s biggest economy which may curb fuel demand. The Chicago Fed National Activity Index came in at -0.30 in November, compared to -0.17 in October, with a reading below 0 signaling contraction.
 

Oil may ink a slight rebound today as the sharp losses in recent sessions offer a good bargain buying opportunity, to investors, in the fuel, at existing levels.
 

At the MCX, Crude oil futures, for the January 2016 contract, closed at Rs 2,385 per barrel, down by 0.71 per cent, after opening at 2,402, against the previous close price of Rs 2,402. It touched an intraday low of Rs 2,366.