Kingfisher Air's Q1 loss up by 40.66%
Kingfisher Airlines today said its net loss has widened by 40.66 % at Rs 263.54 crore for the quarter ended June 30, 2011, mainly due to increased fuel expenses.india Updated: Aug 10, 2011 21:23 IST
Kingfisher Airlines on Wednesday said its net loss has widened by 40.66 % at Rs 263.54 crore for the quarter ended June 30, 2011, mainly due to increased fuel expenses.
The company had reported a net loss of Rs 187.35 crore during the corresponding quarter of last fiscal.
Net revenues of the company, however, rose by 14.68 % during the quarter under review at Rs 1,881.64 crore vis-a-vis Rs 1,640.68 crore of the corresponding quarter of 2010-11, it said in a filing to the Bombay Stock Exchange.
The Vijay Mallya promoted company paid Rs 845.13 crore on account of air turbine fuel, an increase of 44.32 % during the April-June quarter as compared to Rs 585.57 crore it paid in Q1 of FY'11, the filing added.
It further said that the net loss of Kingfisher would have widened by Rs 26.23 crore, had it not adopted the a new norm under the accounting policy, called Exposure Draft on Accounting Standard - 10 (Revised) 'Tangible Fixed Assets'.
"The said norms allows costs on major repairs and maintenance incurred to be amortised over the incremental life of the asset. The company has extended the same treatment to costs incurred on major repairs and maintenance for engines pertaining to acquired on operating lease," the filing said.
It added, "This revised accounting policy has been confirmed by an independent expert and in the opinion of the management, this accounting treatment has resulted in fair depiction of the working results and the state of the affairs of the company".
Moreover, the company also managed to save Rs 126.57 crore during the April-June quarter under the deferred tax segment as it was recognised "on account of unabsorbed depreciation and business losses for the quarter".
"The management is of the opinion that there is a virtual certainty, supported by convincing evidence against which such deferred tax will be realised," the filing further said. The airline's domestic operations reported a growth of 10.23 % at Rs 1,459.31 crore, while the revenues from international operations increased by 33.35 % at Rs 422.33 crore during the April-June quarter, it added.
In a separate statement, the company said its average passenger load factor increased by 4 percentage points to 85 % in the April-June quarter.
However, the statement added that "the benefits of debt restructuring and improved operating performance were offset by rise in fuel price".
The airline had gone for restructuring of its debt last year and had converted some of its loans into equity transfer to its lenders.
Its promoters have also pledged their 90.17 % of stake in the company, amounting to 52.85 % of the total share capital of the company recently.
Scrips of the company closed on Wednesday at Rs 31.90 on the BSE, up 2.57 % from previous close.