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SPICEJET 2022-23 Annual Report Analysis

Fri, 31 Mar

SPICEJET has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

SPICEJET Income Statement Analysis

• Operating income during the year rose 34.4% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a growth and down at 11.1% in FY23 as against 14.8% in FY22.
• Depreciation charges decreased by 20.9% and finance costs increased by 5.5% YoY, respectively.
• Other income declined by 0.3% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 26.4% in FY22 to 17.0% in FY23.

SPICEJET Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	66,036	88,736	34.4%
Other income	Rs m	10,269	10,235	-0.3%
Total Revenues	Rs m	76,305	98,971	29.7%
Gross profit	Rs m	-9,759	-9,841	NA
Depreciation	Rs m	12,933	10,227	-20.9%
Interest	Rs m	5,020	5,296	5.5%
Profit before tax	Rs m	-17,443	-15,129	NA
Tax	Rs m	0	0	0.0
Profit after tax	Rs m	-17,443	-15,129	NA
Gross profit margin	%	-14.8	-11.1
Effective tax rate	%	0.0	0.0
Net profit margin	%	-26.4	-17.0

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SPICEJET Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 98 billion as compared to Rs 86 billion in FY22, thereby witnessing an increase of 13.9%.
• Long-term debt stood at Rs 5 billion as compared to Rs 3 billion during FY22, a growth of 48.9%.
• Current assets fell 1% and stood at Rs 21 billion, while fixed assets fell 24% and stood at Rs 56 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 78 billion as against Rs 96 billion during FY22, thereby witnessing a fall of 19%.

SPICEJET Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	-43,441	-58,562	NA
Current Liabilities	Rs m	86,126	98,088	13.9
Long-term Debt	Rs m	3,129	4,660	48.9
Total Liabilities	Rs m	95,546	77,706	-18.7
Current assets	Rs m	21,661	21,411	-1.2
Fixed Assets	Rs m	73,884	56,295	-23.8
Total Assets	Rs m	95,546	77,706	-18.7

SPICEJET Cash Flow Statement Analysis

• SPICEJET's cash flow from operating activities (CFO) during FY23 stood at Rs 822 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 5 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -6 billion, an improvement of 30% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 224 million from the Rs -218 million net cash flows seen during FY22.

SPICEJET Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	10,037	822	-91.8%
Cash Flow from Investing Activities	Rs m	-1,490	5,497	-
Cash Flow from Financing Activities	Rs m	-8,778	-6,101	-
Net Cash Flow	Rs m	-218	224	-

Current Valuations for SPICEJET

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -25.1, an improvement from the EPS of Rs -29.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 30.3, stands at -1.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at -0.4 times, while the price to sales ratio stands at 0.2 times.
• The company's price to cash flow (P/CF) ratio stood at -5.6 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	109.7	147.4
TTM Earnings per share	Rs	-29.0	-25.1
Diluted earnings per share	Rs	-25.5	-22.1
Price to Cash Flow	x	-8.2	-5.6
TTM P/E ratio	x	-2.1	-1.4
Price / Book Value ratio	x	-1.0	-0.5
Market Cap	Rs m	42,291	27,670
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for SPICEJET

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.2x during FY23, from 0.3x during FY22. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio improved and stood at -1.9x during FY23, from -2.5x during FY22. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company declined and down at 25.8% during FY23, from 40.2% during FY23. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company declined and down at 18.2% during FY23, from 30.8% during FY22. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company improved and stood at -12.7% during FY23, from -13.0% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	0.3	0.2
Debtors’ Days	Days	14	7
Interest coverage	x	-2.5	-1.9
Debt to equity ratio	x	-0.1	-0.1
Return on assets	%	-13.0	-12.7
Return on equity	%	40.2	25.8
Return on capital employed	%	30.8	18.2

To see how SPICEJET has performed over the last 5 years, please visit here.

SPICEJET Share Price Performance

Over the last one year, SPICEJET share price has moved down from Rs 54.4 to Rs 30.3, registering a loss of Rs 24.0 or around 44.2%.

Overall, the S&P BSE SENSEX is up 1.8% over the year.

(To know more, check out historical annual results for SPICEJET and quarterly results for SPICEJET)