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SpiceJet reported a net loss of ₹112.6 crore in the second quarter ended September 30, 2020. The airline had reported a net loss of ₹462.6 crore previously.
In a statement, the airline said its total income during the second quarter was at ₹1,305 crore as against ₹3,074 crore in the same quarter last year. For the same comparative period, expenses were ₹1,418 crore as against ₹ 3,536 crore.
The company has also earned revenue of ₹328.54 crore from cargo operations during the current quarter, compared to ₹236.39 crore in the quarter ended June 30, this year and ₹127.99 crore in the quarter ended September 30, 2019.
On an earning before interest, tax, depreciation, amortisation and lease rentals (EBITDAR) basis, SpiceJet made a profit of ₹475 crore in the reported quarter as against a profit of ₹154 crore for the same quarter last year.
SR Batliboi & Associates in their ‘Independent Auditor’s Review on the Quarterly and Year to Date Unaudited Financial Results for SpiceJet again raised doubts whether the company is a going concern or not saying that there was “the existence of a material uncertainty that may cast significant doubt about the Company's ability to continue as a going concern.”
The auditors also said that had the company “not recognised such other income and the related foreign exchange restatements, the reported loss for the quarter would have been higher by ₹120.40 crore (₹261.72 crore for the year to date period ended September 30, 2020), accumulated losses as at September 30, 2020 would have been higher by ₹970.23 crore, and other receivables at September 30, 2020 would have been lower by ₹970.23 crore. Our conclusion for the quarters ended June 30, 2020 and September 30, 2019 and opinion for the year ended March 31, 2020 were also qualified in respect of this matter.
The auditors further stated that the company had said for the quarter and year-to-date period from April 1, 2020 to September 30, 2020 that it had a negative net growth worth of ₹1,485.2 crore as of March 31, 2015 after which it had been profitable for three financial years up to 2017-18. However, due to net losses in the current period and aggregate net losses of ₹1,250.84 crore.44 during the years ended March 31, 2019 and March 31, 2020, the Company’s negative net worth stood at ₹2,285.37 crore as at September 30, 2020.
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