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Monday, November 17, 2014

SpiceJet Financial Results Quarter Ended Sep 30,2014

 
The air carrier reported a net loss of Rs 310 crore for the second quarter ended September 30, 2014.

This was the fifth straight quarter of losses. The firm had posted a net loss of Rs 559 crore in the corresponding quarter of the last financial year, the company said in a BSE filing.

Apprehending an uncertain future for the company, some 40-odd SpiceJet pilots including commanders have quit the airline during the past six months

The airline auditors in their recent report have cast doubts over the ability of media baron Kalanithi Maran's budget carrier to run it as a "going concern". 
The airline's auditors SR Batliboi & Associated have red flagged its concerns saying, "as of September 30, 2014, the company's total liabilities exceed its total assets by Rs 1,459.7 crore. These conditions indicate the existence of a material uncertainty that may cast significant doubt about the company's ability to continue as a going concern.

As of June 2014, the total debt on SpiceJet's balance sheet was Rs 1,516 crore, while its net worth was negative - Rs 1,019 crore. 
Again, unlike, Kingfisher, SpiceJet made a profit many times over. In fact, its top line has grown substantively over the last five years from a fledgling Rs 2,222 crore in March 2010 to a healthy Rs 6,437 crore in March 2014

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