Are SpiceJet latest results good or bad?

SpiceJet has reported its financial results for the quarter ending December 2024, reflecting a mixed operational performance. The Profit After Tax (PAT) for this quarter is Rs 20.44 crore, which shows a significant growth compared to the average PAT of Rs -117.76 crore from the previous four quarters, indicating a positive trend in profitability.
However, the airline has encountered challenges with its net sales, which have declined by 21.2% to Rs 1,237.04 crore, down from an average of Rs 1,569.00 crore in the preceding four quarters. This decline suggests a negative trend in sales performance. Additionally, there is a notable increase in non-operating income, which has surged to 2,058.16% of Profit Before Tax (PBT). This raises concerns regarding the sustainability of the business model, as a heavy reliance on non-operating income can be precarious.

In terms of quarterly performance, SpiceJet has shown a growth in net sales of 35.22% compared to the previous quarter, which contrasts with a prior decline of 46.44%. The consolidated net profit also reflects a growth of 104.46% from the previous quarter, following a substantial decline of 389.22%. However, the operating profit margin remains negative, though it has shown a slight improvement.

Overall, while SpiceJet has demonstrated a positive shift in profitability, the decline in sales and high reliance on non-operating income present significant challenges for the airline moving forward. The company has seen an adjustment in its evaluation based on these results.