The share price of one of India’s leading low-cost airlines hit a 20 percent upper circuit at Rs 52.29 as the company’s board has decided to meet on December 11, 2023, to discuss the fund-raising route.
SpiceJet’s Board of Directors scheduled a meeting on December 11, 2023, to decide on raising fresh capital through the issue of equity shares or convertible securities on a preferential basis.
The principal business of SpiceJet is to provide air transport services for passengers and cargo carriages.
In terms of market share, it has 13 percent and is the second-largest player in the domestic aviation industry. It also has a 13 percent market share when it comes to international aviation among domestic airlines and is the third largest player behind Air India and Indigo.
It mainly generates revenue from two segments i.e. Air Transport Service and Freighter and Logistics Services. For Q1FY24, the revenue from Air Transport Service amounts to Rs 2002 Crore which is 96 percent of the total revenue. Whereas the revenue from the Cargo segment amounted to Rs 729 Crore which is 4 percent of the total Revenue.
From the Annual Report FY23, the total liabilities stood at Rs 13,808 Crore out of which borrowings were Rs 1,079 Crore and lease liabilities were Rs 7,250 Crore. At the end of Q1FY24, the total liabilities stood at Rs 13,147 Crore.
The fleet of SpiceJet contains Boeing and Q-400 which allows great efficiency in maintenance and helps to maintain its low cost structure to stay competitive. It has 59 Boeing airplanes and 32 Q-400s in its fleet to date.
The share has given a return of 38.3 percent for the past month and has given a return of 87% for six months. The Retailers hold around 43.47 percent of the stake.
The Revenue of the airline has decreased by 6.6 % from Rs 2,457 Crore in Q1FY23 to Rs 2,002 Crore in Q1FY24. However, the Net Income has increased from a loss of Rs 783.62 Crore in Q1FY23 to a profit of Rs 197.62 Crore in Q1FY24.
The Company had a capex of only 37 Crore in FY2023. The reason for this is that the company has an asset-light model. The company mostly leases aircraft rather than upfront purchasing the aircraft.
Written by Nalin Suriya S
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