NEW DELHI (TIP): Under its new ownership, SpiceJet has flown back into the black after seven consecutive loss-making quarters. The low cost carrier reported a profit of Rs 22.5 crore in January-March 2015 quarter as against a loss of Rs 321.5 crore is the same period last year.

The income from operations, however, fell by almost 40% to Rs 786.3 crore in Q4 as the airline had sharply cut flights and was on the verge of closure. It was saved as SpiceJet co-founder Ajay Singh bought the airline from Sun Group chief Kalanithi Maran in Q4.

“These results indicate that a recovery is in progress, and is the first tangible evidence of the ongoing revival. We are confident that we will build a world-class airline and this is the first step. We still have a lot of work to do… I am delighted to see the airline that I helped create 10 years ago starting to get back on its feet in this manner,” Singh said.

Singh’s notes with the Q4 result said SpiceJet had accumulated losses of Rs 3210.8 crore as on March 31, 2015. On that date, the company’s liabilities exceed its assets by Rs 1264.5 crore. The company had also delayed payments to various parties. “These factors have resulted in a material uncertainty that may cause significant doubt about the company’s ability to continue as a going concern,” Singh’s notes say, adding that the airline is looking at means to raise funding.

SpiceJet flew into black on the back of an exceptional gain of Rs 61.3-crore insurance claim received for one of its damaged Bombardier Q400 aircraft.

SpiceJet also reported a positive EBITDA of Rs 80 crore, against a negative Rs 235 crore in the previous year. This February, Singh had acquired entire 58.4% stake from Maran and promised an investment of Rs 1500 crore in a phased manner. Singh has pumped in almost Rs 800 crore.