SpiceJet on Tuesday said it is shifting its cargo and logistics services to its subsidiary SpiceExpress & Logistics Pvt Ltd.
SpiceJet on Tuesday said it is shifting its cargo and logistics services to its subsidiary SpiceExpress & Logistics Pvt Ltd. SpiceJet Chairman and Managing Director Ajay Singh said in a statement that the proposed transfer of business to SpiceXpress will help the new company rapidly grow its logistics platform and services business.
He added that SpiceExpress will also be able to raise capital separately from SpiceJet for its growth. He expressed confidence that the performance of SpiceXpress as an independent entity would be beneficial for SpiceJet and all its shareholders.
The logistics business is valued at Rs 2,555.77 crore as per an independent assessment conducted by it, the airline said in a statement.
SpiceJet has incurred a loss: In the first quarter of the current financial year, SpiceJet has incurred a loss of Rs 729 crore. Earlier in the quarter of January-March 2021 also, the company had a loss of Rs 235 crore.
However, SpiceJet’s total income grew 80 per cent to Rs 1,265.85 crore in the quarter under review, as against Rs 704.56 crore in the same quarter last year. Total revenue from operations increased by 112 per cent to Rs 1,089.73 crore from Rs 514.69 crore.
