Kingfisher Airlines stock was hammered for the second day today, losing nearly 20% in two days, with its market valuation eroding over Rs 237 crore amid concerns over company's financial health.
The stock, which tumbled 7.49% yesterday, dipped further by 12.47%, settling at Rs 20 on the Bombay Stock Exchange.
In the last two sessions, the company has lost Rs 237 crore in market capitalisation, which stood at Rs 995 crore at the end of this week's trade.
Intra-day, the stock had fallen by over 17.50% to a 52-week low of Rs 18.85 a share.
Similarly, on the National Stock Exchange, where the scrip dipped to a 52-week low of Rs 18.85 a share intra-day, before closing 12.47% down at Rs 20.
Debt-laden Kingfisher, which claims a market share of about 20%, has said it is taking steps to improve operating performance. This week, it decided to phase out the low-cost service, Kingfisher Red, in about four months.
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Wellindia Group Senior Equity Analyst Vivek Negi said, "The company is in a very bad shape. At present, the market-cap of the company is only around Rs 1,000 crore, while it has an outstanding loan of around Rs 12,000 crore."
Negi further said, "The company is paying interest of around Rs 1,000 crore every year, which is eating up most of the profits. The overall situation is very bad. Going forward, the downtrend in the stock is likely to continue."
In an investor presentation in June, the company said its total debt before the recast stood at Rs 7,651.12 crore and came down to Rs 6,007.30 crore after that.
At the end of 2010-11, the airline's total secured loans stood at about Rs 5,184.5 crore, up from Rs 4,842.4 crore a year ago.
The company's unsecured loans were, however, lower at Rs 1,872.55 crore as of March 31, 2011, down from Rs 3,080.17 crore a year ago.
Its total revenue rose by 23% to Rs 6,496 crore in 2010-11, while it narrowed its net loss to Rs 1,027 crore from Rs 1,647 crore in 2009-10.
In the quarter ended June 30, it posted a net loss of Rs 263.5 crore while its revenue rose by 15% to Rs 1,911 crore.