SpiceJet posted its third consecutive quarterly net profit at Rs 23.8 crore for the July-September period as fuel costs declined and it filled more seats on its aircraft. In the same quarter in 2014, the airline had reported a net loss of Rs 310.4 crore.
SpiceJet said in a statement that year-on-year capacity reduction of 34%, which was driven by fleet reductions in late 2014, affected revenue for the quarter. Revenue was down 28% year on year.
The airline has been improving its financial performance for the last three quarters but its networth continues to be negative. According to the statement, total liabilities exceeded total assets by Rs 111857.6 lakh or Rs 1,118.6 crore.
Chairman Ajay Singh pointed out that historically, SpiceJet's results have been affected by high cost structure and adverse market conditions. The company has also delayed payments to various parties over the last two years and these factors have "resulted in a material uncertainty that may cause significant doubt over the company's ability to continue as a going concern".
Singh reiterated that Spicejet continues to look for funding in different ways including strategic funding. Singh said the company shall arrange funds and meet obligations when they fall due and therefore the financial results have been prepared on the basis that the company will remain a "going concern".
He mentions plans to increase fleet without going into details - Singh had earlier expressed his intention to place a large order for aircraft and has since been speaking of adding another order for smaller aircraft to the first one. There is no mention of the new orders in the statement on Q2 results though.
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Updated Date: Nov 12, 2015 18:09:18 IST