Penny Airline Stock Under Rs 50 In Focus As Company Launches Daily Non-Stop Flights Connecting Delhi and Kathmandu
In its annual results, the company reported net sales of Rs 7,085 crore, an operating loss of Rs 644 and a net loss of Rs 424 crore in FY24.
On Friday, shares of SPICEJET LTD surged 1.55 per cent to Rs 46.50 per share from its previous closing of Rs 45.79 per share. The stock’s 52-week high is Rs 79.90 per share and its 52-week low is Rs 39.91 per share.
SpiceJet has announced the launch of a new daily, non-stop flight service connecting Delhi and Kathmandu, set to commence on May 10, 2025. This expansion marks a significant milestone for the airline, representing its first new international destination following a successful Qualified Institutional Placement (QIP). The new route, operated using Boeing 737 aircraft, will offer convenient morning departures from Delhi and Kathmandu, facilitating efficient travel between the two capital cities. This development underscores SpiceJet's commitment to strengthening its international footprint, adding to its existing network that includes popular destinations like Dubai and Bangkok.
The airline's strategic expansion is underpinned by recent financial and operational enhancements. Following the QIP, which raised INR 3,000 Crore, SpiceJet has aggressively broadened its domestic network, introducing flights to emerging destinations like Shivamogga, Tuticorin, Porbandar, and Dehradun, while also reinstating routes to previously served cities such as Gorakhpur. Further bolstering its stability, SpiceJet has received multiple credit rating upgrades from Acuité Ratings & Research Limited and CareEdge Ratings, alongside a substantial INR 294.09 Crore investment from Promoter Ajay Singh. These developments have solidified the airline's financial health and set the stage for a new phase of growth in its international operations.
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Kathmandu, a city renowned for its rich cultural heritage and breathtaking Himalayan views, stands as a pivotal hub for both tourism and business. The newly established Delhi-Kathmandu route is poised to significantly enhance connectivity between India and Nepal, catering to a diverse range of travellers. Whether for leisure, pilgrimage, or business, the seamless travel experience offered by SpiceJet will provide a valuable link between these two vibrant regions. The flight schedule, with convenient morning departures and afternoon arrivals, will optimize travel time and further promote bilateral exchange and tourism
SpiceJet is India's favourite airline that has made flying affordable for more Indians than ever before. SpiceJet is an IATA-IOSA certified airline that operates a fleet of Boeing 737s & Q-400s and is one of the country's largest regional players operating multiple daily flights under UDAN or the Regional Connectivity Scheme. The majority of the airline's fleet offers SpiceMax, the most spacious economy-class seating in India.
Despite a 35 per cent year-over-year (YoY) drop in sales to Rs 1,237.0 crore, compared to Rs 1,914.4 crore in Q3 FY23e, the company demonstrated a significant financial recovery; EBITDA losses narrowed by 21 per cent YoY to Rs -188 crore, and net profit turned positive at Rs 25 crore, a 108 per cent YoY improvement. This positive shift, alongside a 104 per cent increase in EPS to Rs 0.19, was largely attributed to a 72.3 per cent surge in other income to Rs 417.1 crore, which compensated for the operational revenue decline.
In its annual results, the company reported net sales of Rs 7,085 crore, an operating loss of Rs 644 and a net loss of Rs 424 crore in FY24. The company has a market cap of over Rs 5,700 crore.
Disclaimer: The article is for informational purposes only and not investment advice.