Low-cost carrier SpiceJet’s net worth fell to a negative Rs 461.5 crore at the end of September 2018, according to data available on the company’s website. The net worth as on March 31, 2018 was a negative Rs 42.9 crore.
According to a report by Crisil dated October 9, 2018, the company’s liquidity will remain stretched due to continued cost pressure “in the near to medium term, driven by significant increase in the operating cost and limited ability to pass on the increased cost to customers due to intense competition. Further, SpiceJet was expecting some cash infusion from the sale and lease back transactions that got delayed due to late delivery of the new aircrafts. Hence, liquidity profile has weakened”.
The agency has downgraded ratings for the airline’s bank loans for the short and well as long term. The airline’s earnings before interest, tax, depreciation, amortisation and rentals (Ebitdar) slipped into the red in the three months to September at a negative Rs 145 crore and it reported a net loss of Rs 389 crore. Borrowings at the end of September were Rs 1,217 crore.
The carrier has maintained a 91% passenger load factor, the highest among the Indian carriers in the 41 months up to August, 2018. While the company had cash and bank balances of Rs 248 crore at the end of March quarter, it has fallen to Rs 109 crore by end of September.
20/11/18 Financial Express
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According to a report by Crisil dated October 9, 2018, the company’s liquidity will remain stretched due to continued cost pressure “in the near to medium term, driven by significant increase in the operating cost and limited ability to pass on the increased cost to customers due to intense competition. Further, SpiceJet was expecting some cash infusion from the sale and lease back transactions that got delayed due to late delivery of the new aircrafts. Hence, liquidity profile has weakened”.
The agency has downgraded ratings for the airline’s bank loans for the short and well as long term. The airline’s earnings before interest, tax, depreciation, amortisation and rentals (Ebitdar) slipped into the red in the three months to September at a negative Rs 145 crore and it reported a net loss of Rs 389 crore. Borrowings at the end of September were Rs 1,217 crore.
The carrier has maintained a 91% passenger load factor, the highest among the Indian carriers in the 41 months up to August, 2018. While the company had cash and bank balances of Rs 248 crore at the end of March quarter, it has fallen to Rs 109 crore by end of September.
20/11/18 Financial Express
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