SpiceJet Q1 profit falls 27% to Rs 150 crore

New Delhi: SpiceJet, which is looking to raise funds, on Wednesday posted a 27 per cent decline in standalone profit at Rs 149.96 crore in the three months ended June compared to the year-ago period.

The budget carrier had a standalone profit of Rs 204.56 crore in the June 2023 quarter. The profit is higher compared to three months ended March this year when the amount stood at Rs 118.99 crore.

According to a regulatory filing, SpiceJet's total income declined to Rs 2,067.21 crore in the first quarter of the current financial year as against Rs 2,268.06 crore recorded in the same period a year ago.

In the latest June quarter, the carrier's total expenses fell to Rs 1,917.25 crore compared to Rs 2,063.49 crore in the year-ago period.

As per a release, the operating profit in the first quarter of this fiscal rose 27 per cent to Rs 393 crore as against Rs 310 crore reported in the 2024 March quarter.

The airline, which is facing multiple headwinds, has initiated the process of raising up to Rs 3,000 crore through the Qualified Institutional Placement (QIP) route and that is expected to be completed by the end of September this year.

"This fresh infusion of funds will be pivotal in enabling the airline to expand and unground its fleet, enhance operational capabilities, settle liabilities and improve its overall market competitiveness. These funds will stabilise the overall operations and allow expansion," it said in the release.

SpiceJet Chairman and Managing Director Ajay Singh said the upcoming Rs 3,000 crore fund raise will be instrumental in reinforcing its financial foundation.

Shares of the airline dropped 2.50 per cent to close at Rs 55.03 apiece on BSE.