Grounded Kingfisher reports 5% drop in Q2 loss at Rs716 crore
09 November 2013
Grounded carrier Kingfisher Airlines has reported a 5 per cent drop in its net losses during the July-September quarter of the current financial year, compared with a net loss of Rs753.55 crore in the July-September 2012-13 quarter.
The reduction in losses has been due an 80-per cent drop in quarterly expenses to Rs130 crore compared to the previous financial year when the airline was in service.
However, the company faced Rs50 crore in employee cost, down by 43 per cent from Rs89 crore in the same period last year.
Kingfisher Airlines, which has been grounded for over a year since October 2012, following a continuing strike by its employees demanding salaries, has not paid its employees for more than a year.
The airline, headed by liquor baron Vijay Mallya, had reported revenues of Rs200 crore in the same period last year when it was operational.
Kingfisher's quarterly financial results account for Rs345.5 crore towards finance costs as against Rs421.4 crore during the year-ago quarter even though the company is in default of debt servicing since January 2012.
The company has not been servicing its over Rs7,500-crore bank loans since January 2012 and lender banks are have initiated the loan recovery process. So far, banks have been able to recover only around Rs1,000 crore by selling pledged shares.
Similarly, in default of debt servicing since January 2012, the crippled carrier's financial result statement shows Rs345.5 crore towards finance costs as against Rs421.4 crore year ago.
From January 2012, the company has not been servicing its over Rs7,500 crore bank loans and bankers are have initiated the recovery process.
Kingfisher Airlines' long-term liabilities increased 7 per cent to about Rs7,400 crore as of 30 September 2013, from Rs6,918 crore as of 31 March 2013.
The once No 2 airline, headed by the flamboyant liquor baron Vijay Mallya has not flown since October last year.
The airline, however, reiterated it is exploring various options to recapitalise and resume operations and talks are on with prospective investors.
The company has said it will approach its lenders for a debt restructuring at an appropriate time.