A 200% rise in profit but Spicejet stock is down. Heres why
According to an analyst who wished not be quoted as it is against his companys policy, the Spicejet stocks went down as there were high expectations from the companys March-ended quarter. He said, The fall in oil prices was supposed to increase the profits further and that has disappointed the markets.
Shares of Spicejet tumbled nearly 8% on Friday after the airline reported a 225.01% rise in a standalone net profit to Rs 73.18 crore for the quarter ended March 31, 2016.
The airline's net profit was Rs 238 crore in the December 2015 quarter and Rs 23 crore in the fourth quarter of last year. The profit would have been over Rs 200 crore had the company not taken a Rs 173 crore one-time expense towards stabilising and imporving the reliability of its fleet.
According to an analyst who wished not be quoted as it is against his company's policy, the Spicejet stocks went down as there were high expectations from the company's March-ended quarter. He said, "The fall in oil prices was supposed to increase the profits further and that has disappointed the markets."
“This turnaround, unparalleled in the history of Indian aviation, would not have been possible without the support of my colleagues at SpiceJet and all our partners. I thank them all,” Ajay Singh, chairman and managing director of the airline, added.
Spicejet's stocks are expected to recover in the coming days as investors expect the company to report strong earnings for its next quarter, the analyst added.
“We had inherited a deeply distressed company last year. We are delighted that we have made significant progress both financially and operationally, and have significantly strengthened our balance sheet," Singh said on Thursday.
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