No-frills airline SpiceJet on Wednesday said it has incorporated a subsidiary that will focus on consumer merchandise and goods business. The move is expected to help the carrier in diversifying its revenue streams. The wholly-owned subsidiary ‘SpiceJet Merchandise Private Limited’ would engage in business of various goods including readymade apparels, through various channels. In a regulatory filing, SpiceJet said the arm would “engage in the business of consumer merchandise and goods that will include electronic items, readymade apparels, accessories etc.” The carrier noted that the business would be carried out through various channels such as “in flight sale, online platform, airport shops and retail outlets.” In the three months ended March 2016, the airline posted more than three-fold rise in net profit at Rs 73.19 crore. Aided by higher revenues and lower fuel costs, SpiceJet remained profitable for the fifth straight quarter posting a net profit of Rs 73.19 crore in the fourth quarter of last financial year. It had a net profit of Rs 22.52 crore in year-ago period. During the latest March quarter, the airline’s total income from operations climbed to Rs 1,474.99 crore from Rs Rs 790.91 crore in the same period a year ago. For the financial year 2015-16, SpiceJet saw its net profit surging to Rs 407.19 crore against a net loss of Rs 687.05 crore in 2014-15 fiscal. SpiceJet operates 298 daily flights to 41 destinations, including 35 domestic and 6 international ones.
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