With a market capitalization of Rs 1,680 crores, the shares of Spicejet Limited are trading in the green with the current market price being Rs 28, exhibiting a gain of around 5 percent as compared to the previous closing price of Rs 26.76.
The stock movements are observed today after the company, in a regulatory filing on the BSE, announced the partnership with FTAI Aviation Limited, a leading aftermarket provider of engine services, under the ‘CFM56 revitalization’ program.
With the help of this program, FTAI Aviation will be providing Spicejet with up to twenty engines for lease. Aligning FTAI’s engine expertise, the company will be able to have access to a pipeline of engines already available reducing the hassle of frequent buys.
Moreover, the program will aid the airline company to reduce maintenance expenses and minimize aircraft downtime which will lead to an enhancement of the performance on an overall basis.
In addition to the above, the company, with FTAI handling the engine management, will be able to strengthen the allocation of its resources and focus on delivering a travel experience way above expectations.
The latest financial data of the company shows operating revenue of Rs 2,316 crores in Q3 as compared to Rs 1,954 crores of revenues in the previous quarter. Moreover, the company has witnessed a turnaround in its profits with the most recent movement being from net losses of Rs 833 crores in Q2 to net profits of Rs 110 crores in Q3.
Spicejet Limited is an airline company based in India offering both, i.e., domestic as well as international air travel services. It primarily generates revenue from passenger air travel services and other ancillary sources comprising of spice vacations, cargo, visa, etc. Moreover, the company is also engaged in offering charter services.
According to the latest shareholding pattern available for the March 2023 quarter, Promoters of the company hold a 58.98 percent stake, and Foreign Institutional Investors (FIIs) hold a 0.43 percent stake in the company.
Written by Amit Madnani
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