SpiceJet PAT at Rs 150 cr, to raise Rs 3K cr via QIP

NEW DELHI: SpiceJet on Wednesday announced its second consecutive profitable quarter. The carrier reported a net profit of Rs 150 Crore for the quarter ending June 2024 (Q1FY25), an increase of 26% over the December quarter (Q4FY24).

To strengthen its financial position and support its growth plans, SpiceJet said it has already initiated the process of raising Rs 3,000 crore through a qualified institutional placement (QIP), which is expected to be completed by the end of September 2024. The airline added that 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 overall operations and allow expansion,” said SpiceJet. While the airline’s total income fell 8.3% YoY to Rs 2,077.8 crore, its total expenditure fell over 7% to Rs 1,919.6 crore. The Gurugram-based company’s liabilities at the end of the June quarter came at Rs 11,252 crore, compared to Rs 11,690 crore as of March 31.

Last month, it was reported that the cash-starved airline has not deposited employees’ provident fund (EPF) dues over nearly two-and-half years and recently it came to notice that it has not disbursed June salaries for a section of employees. Earlier this week, Adani group-run Mumbai International Airport Limited (MIAL) said SpiceJet flights to and from Mumbai airport are expected to be “temporarily disrupted” from Tuesday onwards However, MIAL deleted the post from X.

Ajay Singh, Chairman and MD of SpiceJet, said, “The upcoming $3,000 crore fundraise via QIP will be instrumental in reinforcing our financial foundation and positioning SpiceJet for sustained success. We believe in resilience of our business model and remain committed to providing our customers with the best flying experience possible.”

Fundraising to support airline’s growth plans

To strengthen its financial position and support its growth plans, SpiceJet said it has initiated the process of raising `3,000 crore via a qualified institutional placement by the end of Sept 2024. The airline said this infusion of funds will be pivotal in enabling the airline to expand and unground its fleet, enhance operational capabilities, and settle liabilities.