SpiceJet fell 3.18% to Rs 19.80 at 11:40 IST on BSE after the company's auditor raised concern over the firm's net worth.
Meanwhile, the BSE Sensex was down 223.15 points, or 1.13%, to 19,504.12.
On BSE, 24.37 lakh shares were traded in the counter compared with average volume of 29.87 lakh shares in the past one quarter.
The stock hit a high of Rs 20 and a low of Rs 19.10 so far during the day. The stock hit a 52-week high of Rs 50.90 on 7 December 2012. The stock hit a 52-week low of Rs 18.05 on 30 August 2013.
The stock had underperformed the market over the past one month till 27 September 2013, falling 2.15% compared with the Sensex's 9.79% rise. The scrip had also underperformed the market in past one quarter, sliding 20.74% as against Sensex's 4.51% rise.
The small-cap company has an equity capital of Rs 520.28 crore. Face value per share is Rs 10.
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In the airline's annual report for 2012-13, auditors SR Batliboi and Associates has stated, "The company's operating results have been materially affected due to various factors and as at 31 March 2013, the company's accumulated losses has fully eroded the net worth of the company. The appropriateness of the going concern assumption is dependent on the company's ability to establish consistent profitable operations as well as raising adequate finance to meet its short term and long term obligations. Based on the mitigating factors discussed in the said note, management believes that the going concern assumption is appropriate and no adjustments have been made in the financial statements for the year ended 31 March 2013."
In its outlook in the annual report, SpiceJet said that while the industry outlook for financial year 2013-14 looks a bit challenging, the company has increased its foot print in international operations and will continue to add international destinations and routes. This will result in additional aircraft utilisation and secure better yields. This will also offset the risk of infusion of additional capacities into domestic sectors.
Net profit of SpiceJet declined 9.96% to Rs 50.56 crore on 19.57% rise in net sales to Rs 1688.48 crore in Q1 June 2013 over Q1 June 2012.
SpiceJet currently operates more than 330 daily flights to 42 Indian cities and 7 international destinations.
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