**Spice Jet– Q3 FY20 (Un Audited –Cons)**
CMP: 90
Total revenue from operations at 3,656 Cr
2,488 Cr (46.92%) YoY | 2,848 Cr (28.31%) QoQ
Nine Months ending revenue: 9,507 Cr Vs. 6,586 Cr (44.31%)
Net Profit of 77.9 Cr
64.4 Cr (20.31%) YoY (461.2) Cr (83.22%) QoQ
Nine Months ending Net profit: (120) Cr Vs. (356) Cr (66.23%)
EPS (in Rs.) 1.30
1.07 YoY | (7.69) QoQ
Nine Months ending EPS: (2.01) Vs. (5.95)
View: Result is overall good. YoY revenue and profit both have up. Also Q2 company posted huge losses and now showing good profit.
**Business Updates & Highlights**:
Reports a 47% growth in Operational Income against the same quarter last year. Profit of INR 659.2 crore on EBITDA basis
Launched 65 new domestic flights. Added six planes to its fleet. Fleet size grew to 119 as on December 31, 2019 with 600 daily flights.
Average fare up 4% over Q3 FY2019. Operating 49 daily UDAN flights.
Average fare up 4% over Q3 FY2019. Record Passenger Load Factor of over 90% for 56 successive months
ROE and ROCE is around INR 10% and (12)% respectively and book value per share is around INR (143) and share is currently trading at (6.1)x of its book value. Promoter holding is around 59.9% in the company which is good, **Promoter has pledged around INR 1,340 Cr worth of shares** (which is around 44% of their shareholding) Mutual fund hold around 6.8% in the company.
**Share View**: Share price high 157 (52 week) and now 90. SpiceJet Limited is an Indian low-cost airline headquartered in Gurgaon, India. It is the second largest airline in the country by number of domestic passengers carried, with a market share of 13.6% as of March 2019. The majority of the airline’s fleet offers SpiceMax, the most spacious economy class seating in India
Short term outlook is good due to strong quarterly performance. Long term investor can continue with the company as Spice Jet is still at less valued as compare with listed Indigo.
Opportunities: Second largest airlines and continuously adding new route with new flights also, almost covered entire country. Benefit of enhancing the fare as well as limited option in flights.
Risk: Share pledged by the promoter, Airline impacts various external things like DGCA rules and regulation, ATF crude impact, foreign currency fluctuation. Heavy Capex expenditure for adding new flights.
Disclaimer: Views are shared based on market research and study and personal in nature. Others can take the different view and opinions. Please do the thoroughly study before enter or exit the shares.
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