SpiceJet shares were trading in the red on Thursday, a day after the company reported its financial results for the April to June 2022 quarter, in which its net loss broadened given high fuel prices, rupee depreciation, and a one-time forex loss.

Spicejet shares gave up over 14 percent in early deals but recovered more than 12 percent from the day's low of Rs 39.60 on BSE. At 1:43 pm, the aviation stock was trading at Rs 43.85, down 5.5 percent from the previous close.

Though the stock has gained over 7 percent in the past month, it has erased more than 36 percent of investors’ wealth in 2022 (year-to-date) as against the benchmark Sensex which has 0.6 percent during the period.

The tailspin in the stock comes after the budget carrier posted a net loss of Rs 789 crore, which includes a one-time forex loss of Rs 369 crore, for the June quarter of FY23. The airline posted a net loss of Rs 729 crore in the quarter ended June FY22.

This is even as SpiceJet’s revenue jumped 126 percent on a year-on-year (YoY) to Rs 2,457 crore. On a sequential basis, the firm’s revenue is up 32 percent.

According to the airline's Chairman and Managing Director Ajay Singh, this has been the most severe operating environment in the recent past due to record high jet fuel prices and the depreciating rupee being the major problems.

The crisis-hit airline has also delayed payment of salaries to staff for the second straight month. However, SpiceJet said it has started crediting salaries from Wednesday, and like the previous month, "salary will be credited in a graded format".

SpiceJet announced its result on the day it said its Chief Financial Officer Sanjeev Taneja resigned. The firm said its board of directors had identified a candidate for the CFO's position, and the vacancy shall be filled this month.

Also Read: Ajay Singh says SpiceJet is incredibly safe to fly

According to the firm, the average aviation turbine fuel (ATF) price during the three months increased by 105 percent as compared to the same quarter last year and by 40 percent quarter on quarter (QoQ).

Amid the financial turmoil, the airline plans to raise $200 million, which is around Rs 1,600 crore at current exchange rates and expects to complete the hiving-off of its profitable cargo business into a separate company in the current quarter.

“The board has mandated fresh capital issuance, and the company will be shortly engaging with investment bankers for a potential raise of up to the US $200 million,” the company said in its regulatory filing.

Also Read: SpiceJet plane's tyre gets deflated after landing at Mumbai airport

However, the airline added that several conditions indicate the existence of “material uncertainties that may cast significant doubt about the company's ability to continue as a going concern.”

Meanwhile, on Wednesday, aviation watchdog Directorate General of Civil Aviation (DGCA) deregistered two more Boeing 737 planes of SpiceJet following non-payment of dues to lessors. With the latest deregistration, a total of six Boeing 737 aircraft of the budget carrier were deregistered in August.

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First Published:Sept 1, 2022 9:32 AM IST