HindustanTimes Wed,22 Oct 2014

Kingfisher reports massive Rs. 716 cr loss in Q2

PTI  Mumbai, November 08, 2013
First Published: 23:06 IST(8/11/2013) | Last Updated: 23:10 IST(8/11/2013)

Kingfisher Airlines, which is grounded for over a year, on Friday reported a massive Rs. 716 crore net loss in the September quarter.

In the year-ago period, the airline had reported net loss of Rs. 754 crore, Kingfisher said in a filing to the stock exchanges.

The airline, headed by liquor baron Vijay Mallya, has been grounded after employees went on strike demanding salaries.

Despite not paying salaries for the past 14 months, the company allocated Rs. 50.8 crore towards employee expenses in the reporting quarter, against Rs. 59 crore in the year ago period.

Similarly, in default of debt servicing since January 2012, the crippled carrier's financial result statement shows Rs. 345.5 crore towards finance costs as against Rs. 421.4 crore year ago.

From January 2012, the company has not been servicing its over Rs. 7,500 crore bank loans and bankers are in the recovery process. So far, banks have been able to recover only around Rs. 1,000 crore by selling pledged shares.

The airline reiterated today that it is exploring various options to recapitalise and resume operations and talks are on with prospective investors.

Shares of Kingfisher Airlines fell by 1% to Rs. 5.64 on Friday on the BSE. It is currently valued at Rs. 456 crore.

Yesterday, low-cost carrier SpiceJet reported a whopping Rs. 559 crore net loss in the September quarter, while the second largest Jet Airways group last month reported a record quarterly loss of Rs. 891 crore.

more from Business

Gold is glittering this Dhanteras

Gold is glittering this Dhanteras as jewellers are experiencing good sales driven by better prices compared to last year. Last year, there was a supply crunch of gold in the market after the government hiked its import duty to 15% to curb higher import as that was causing imbalance in the current account deficit in the country.
Most Popular
Copyright © 2014 HT Media Limited. All Rights Reserved