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SpiceJet slumps on buzz of financial crisis

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Capital Market
Last Updated : Jul 30 2014 | 11:53 PM IST

SpiceJet fell 16.47% to Rs 13.95 at 13:26 IST on BSE on media reports that the low-cost domestic carrier is facing a severe financial crisis.

Meanwhile, the BSE Sensex was down 117.47 points, or 0.45%, to 25,873.76.

On BSE, so far 93.98 lakh shares were traded in the counter, compared with an average volume of 51.75 lakh shares in the past one quarter.

The stock hit a high of Rs 16.10 and a low of Rs 13.80 so far during the day. The stock hit a 52-week high of Rs 28.90 on 30 July 2013. The stock hit a 52-week low of Rs 12.50 on 4 March 2014.

The stock had underperformed the market over the past one month till 28 July 2014, sliding 12.34% compared with 3.55% rise in the Sensex. The scrip had, however, underperformed the market in past one quarter, rising 6.44% as against Sensex's 14.84% rise.

The small-cap company has an equity capital of Rs 535.28 crore. Face value per share is Rs 10.

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Aviation regulator the Directorate General of Civil Aviation (DGCA) has reportedly sought details on vendor dues from SpiceJet to ascertain the airline's financial condition. The regulator is also doing an engineering audit of SpiceJet to determine the quality of maintenance of its aircraft and availability of spares, reports said.

SpiceJet reportedly said that all its aircraft, other than two that are in regular scheduled C-checks (one Boeing, one Q400) and one Q400 that is undergoing maintenance after a bird hit, are fully airworthy, operational, and flying in daily service. SpiceJet, like other airlines, are subject to regular and ongoing audits by DGCA from time to time and the company is fully compliant with every safety regulation, it added.

According to reports, SpiceJet has been under financial stress, having incurred record loss of Rs 1003.24 crore in the fiscal year ended March 2014. The airline has also not issued Form 16 to its employees - one of whom has complained to the aviation regulator.

SpiceJet reported net loss of Rs 321.51 crore in Q4 March 2014, higher than net loss of Rs 185.71 crore in Q4 March 2013. Net sales rose 9.4% to Rs 1573.41 crore in Q4 March 2014 over Q4 March 2013.

SpiceJet is India's low fare airline. As on 30 June 2014, promoters held 53.48% stake in SpiceJet.

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First Published: Jul 30 2014 | 1:26 PM IST

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