ET Intelligence Group: Is SpiceJet on the cusp of a turnaround? It's a question that could be on the minds of many investors with fundamentals and circumstances going in favour of the low-cost carrier. The listed airline, controlled by Ajay Singh since January, posted profits of Rs 71 crore in the June 2015 quarter thanks to a drop in oil price. An old hand in the aviation business has pledged 33 per cent of his stake to banks to raise money to repay loans. This was after a consortium of investors he led infused Rs 800 crore in the company.
The cash helped SpiceJet lower its debt to Rs 1,100 crore from Rs 2,000 crore. Post fund infusion, the airline's focus has been to contain costs and improve ancillary revenues (earnings from cargoes etc) which have grown to 13 per cent of the top line from 6 per cent six months ago. Also, the company has stopped acquiring aircraft aggressively.
09/10/15 Rajesh Naidu & Jwalit Vyas/Economic Times
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The cash helped SpiceJet lower its debt to Rs 1,100 crore from Rs 2,000 crore. Post fund infusion, the airline's focus has been to contain costs and improve ancillary revenues (earnings from cargoes etc) which have grown to 13 per cent of the top line from 6 per cent six months ago. Also, the company has stopped acquiring aircraft aggressively.
09/10/15 Rajesh Naidu & Jwalit Vyas/Economic Times
