SpiceJet zooms on Q3 turnaround, record profit

SpiceJet, India's best low cost airline, reported a record net profit of Rs 109 crore for the third quarter ended December 2009 against Rs 18 crore loss in the corresponding quarter a year ago. A drop in aircraft fuel prices and 36% rise in operational income help the company to post robust net profit. The company's net sales increased to Rs 642 crore against Rs 472 crore, while aircraft fuel charges declined by 8.5 per cent to Rs 208 crore from Rs 227 crore in the same period. The appreciation of rupee by 3.3% also benefited the company because of a portion of company's cost like lease rental, maintenance cost, part of the employee cost etc are dollar denominated. The company benefited the most from recovery in domestic air passenger traffic with the economy reviving. The stock is trading 10 per cent higher to Rs 58.65 on the BSE. Trading volumes have rised by almost eight-fold to 20.4 million shares as compared to average 2.60 million shares in last two weeks.