CapitalMarket.com - SpiceJet takes off as DGFT approves direct import of ATF
Hot Pursuit Wednesday, April 18, 2012 14:05 Hrs IST

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SpiceJet takes off as DGFT approves direct import of ATF

SpiceJet rose 2.87% to Rs 34 at 14:02 IST on BSE after the company said it has received approval from the Director General of Foreign Trade for importing aviation turbine fuel directly from overseas market.

This announcement was made during trading hours today, 18 April 2012.

Meanwhile, the BSE Sensex was up 75.08 points or 0.43% to 17,433.02.

On BSE, 87.45 lakh shares were traded in the counter as against average daily volume of 61.18 lakh shares in the past one quarter.

The stock hit a high of Rs 34.80 and a low of Rs 33.30 so far during the day. The stock had hit a 52-week high of Rs 47.20 on 20 April 2011. The stock had hit a 52-week low of Rs 15.35 on 22 December 2011.

The stock had outperformed the market over the past one month till 17 April 2012, rising 41.24% compared with the Sensex's 0.62% fall. The scrip had also outperformed the market in past one quarter, surging 47.87% as against Sensex's 5.42% gain.

The company has an equity capital of Rs 484.35 crore. Face value per share is Rs 10.

SpiceJet is the first airline in the country to apply for approval for import of aviation turbine fuel (ATF) and to get clearance for the same. SpiceJet said it is presently negotiating with leading oil marketing companies and is hopeful to start importing fuel in due course. ATF makes up for 50% of an airlines' operating cost. Importing the fuel would allow an airline to save on sales tax imposed by the government.

Commenting on the development, Mr Neil Mills, CEO, SpiceJet said, "The airline sector will benefit from direct imports of fuel due to high ATF prices in India and we are hopeful to commence the import of fuel in due course. Importing fuel from overseas market at comparatively lower price would help us to considerably bring down our operational costs".

SpiceJet reported net loss of Rs 39.26 crore in Q3 December 2011, compared with net profit of Rs 94.45 crore in Q3 December 2010. Net sales rose 40.6% to Rs 1153.13 crore in Q3 December 2011 over Q3 December 2010.

SpiceJet operates 270 fights daily to 32 Indian cities and 2 international destinations.

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