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Shares of Spicejet Ltd. surged 8% on Wednesday to Rs 26.09 apiece from the previous close price of ₹ 24.20. 

One of the probable reasons for the stock price to surge today is the company’s positive announcements, to restore four of the 25 grounded aircraft by June 15, as well as the announcement of a second pay increase for pilots in seven months. These announcements added some kind of relief to the stock, which traded in green after six days.

As per bulk deal data available with the BSE, Nuvama Wealth Finance has sold 68.4 lakh shares, or 1.1 percent, in SpiceJet at an average price of Rs 24.88 per share, amounting to Rs 17.01 crore via open market transactions on May 23.

Spicejet is engaged in the business of scheduled air transport services for the carriage of passengers and cargo, it was among the first private companies that step into the Indian aviation sector Presently, SpiceJet has a 6.9% market share as of the FY23 March quarter.

The company is yet to release Q4 earnings, As per the consolidated financials of the previous quarter, their operating revenues have increased by 18.52 percent from ₹ 1,954 crores in Q2 to ₹ 2,316 crores in Q3 FY23. Similarly, for a  YoY comparison, the revenues declined from ₹6,603  crores during FY 20-21 to ₹ 5,171 crores in FY 21-22. 

The net profit of the company has significantly increased by 113 percent from a loss  ₹ 833 crores in Q2 to a profit of  ₹ 110 crores in Q3, Similarly, for  YoY comparison, the net profit loss went from ₹  1029 crores during FY 20-21 to a loss ₹ 1744 crores in FY 21-22.

As part of Spicejet’s anniversary, the company planned to start a slew of flights, including two international UDAN flights, by June’s end.

According to the latest data pertaining to the shareholding pattern, the promoters hold a 58.98 percent stake, and the public has a 40.57 percent stake in the company for FY 22-23.

Written by Omkar C

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