Mumbai: Shares of Spicejet tumbled over 9 percent Monday after the air carrier reported a net loss of Rs 310 crore for the second quarter ended September 30, 2014.
This was the fifth straight quarter of losses. The firm had posted a net loss of Rs 559 crore in the corresponding quarter of the last financial year, the company said in a BSE filing.
Apprehending an uncertain future for the company, some 40-odd SpiceJet pilots including commanders have quit the airline during the past six months, say sources.
The airline auditors in their recent report have cast doubts over the ability of media baron Kalanithi Maran's budget carrier to run it as a "going concern".
Typically, a company is known as a 'going concern' if it has sufficient resources to continue to operate indefinitely and to avoid any potential bankruptcy risks.
Spicejet's scrip tanked 9.26 percent to settle at Rs 13.82 on the BSE. During the day, it slumped 11.35 percent to Rs 13.50.
On the volume front, 58.65 lakh shares of the company changed hands at the BSE during the day.
Meanwhile, the airline's auditors SR Batliboi & Associated have red flagged its concerns saying, "as of September 30, 2014, the company's total liabilities exceed its total assets by Rs 1,459.7 crore. These conditions indicate the existence of a material uncertainty that may cast significant doubt about the company's ability to continue as a going concern."
