SPICEJET BACK IN PROFIT

NEW DELHI: The transformation of SpiceJet under its new promoter Ajay Singh, who bought out Kalanithi Maran’s stake in January, has begun.

After seven quarters of losses, the Gurgaon-based low-cost carrier reported a net profit of ` 22.5 crore for the January- March quarter against a net loss of ` 321.5 crore a year ago.

On an EBITDA ( earnings before interest, taxes, depreciation, and amortisation) basis, SpiceJet reported positive ` 80 crore, against negative ` 235 crore during last year.

“These results indicate that a recovery is in progress, and is the first tangible evidence of the ongoing revival,” said Singh, who founded the airline in 2005 and was last week designated as its chairman and managing director.

This was the first time that SpiceJet reported a profit in the fourth quarter of a fiscal since 2010. It was also a profitable quarter for SpiceJet’s Q400 fleet, after a long time.

Singh has focused on restoring operational reliability and winning back customer confidence to boost revenues, while negotiating settlements and re- negotiating several major contracts to bring down costs.

“The results beat all estimates. It’s a great start to Singh’s second innings in the airline,” said aviation expert Rajji Rai.

The airline board also cleared the appointment of Kiran Koteshwar as CFO.