Are SpiceJet latest results good or bad?

SpiceJet Ltd. has reported its financial results for the quarter ending December 2024, showcasing a net profit of INR -6,846.76 million, which reflects an improvement compared to the same period last year. The company has surpassed its net profit from the previous year within just six months, indicating a positive trend in this regard. Additionally, SpiceJet's cash and equivalents reached a six-semester high of INR 24,660.03 million, suggesting an enhancement in short-term liquidity. The reduction in raw material costs by 5% year-over-year may also contribute to potential improvements in profit margins.
However, the company is experiencing challenges as net sales fell to INR 12,370.41 million, marking a decline of 21.16% compared to the average net sales of the previous four periods, which indicates a negative trend in near-term sales performance. Furthermore, while non-operating income has reached a peak of INR 5.25 million over the last five periods, the sustainability of this increase remains uncertain.

In the subsequent quarter ending March 2025, SpiceJet reported a net sales growth of 18.47% compared to the previous quarter, although this represents a decline from the 35.22% growth seen in December 2024. The consolidated net profit showed a significant increase of 1,572.65% compared to the previous quarter, which is a notable change. However, the operating profit margin (excluding other income) experienced a decline of 15.92%, despite a year-over-year increase of 21.15%.

Overall, SpiceJet's financial results reflect a mix of operational improvements and ongoing challenges, leading to an adjustment in its evaluation.