SpiceJet flies high, stocks soar nearly 7% on solid results
Shares of SpiceJet settled nearly 7% higher today after the company posted its first profit in seven quarters.business Updated: May 29, 2015 19:00 IST
Shares of SpiceJet settled nearly 7% higher today after the company posted its first profit in seven quarters.
The stock closed at Rs 20.15, up 6.61%, on the BSE. During the day, it had surged 12.69% to Rs 21.30.
In terms of volume, 56 lakh shares of the company changed hands at the BSE during the day.
"Spicejet jumped 12.7% in the day's trade after it reported profit for the first time in the last seven quarters," said Hiren Dhakan, associate fund manager, Bonanza Portfolio Ltd.
Coming out of the red after seven quarters, SpiceJet posted Rs 22.51 crore profit for the January-March quarter, helped by a Rs 650-crore funding by a new promoter, renegotiated contracts with its vendors and provisioning for re-delivery expenses.
The airline had reported a net loss of Rs 321.50 crore in the fourth quarter of 2013-14. SpiceJet has also for the first time reported profit in the fourth quarter of a fiscal since 2010.
The new promoter, Ajay Singh has so far infused Rs 650 crore in the carrier, chief financial officer (CFO) of SpiceJet, Kiran Koteshwar said, whose appointment as the full-time CFO was approved by the airline board on Thursday.
Despite profit, the airline's income from operations declined almost half to Rs 786.32 crore in the reporting quarter compared with Rs 1,573.75 crore a year earlier.
In the broader market, the BSE 30-share Sensex ended at 27,828.44, up 321.73 points.