SpiceJet slips on dismal Q3 numbers

It posted a 59% rise in its third-quarter net loss at Rs 275 crore on lower passenger numbers and a one-time cost of Rs 295 crore

Shares of the budget carrier SpiceJet are trading lower by 2% to Rs 20 on the BSE after the company posted a 59% rise in its third-quarter net loss at Rs 275 crore on lower passenger numbers and a one-time cost of Rs 295 crore.

The cash strapped airline was on the verge of collapsing in December after running out of cash to pay its creditors, before co-founder Ajay Singh stepped in with a rescue package to keep the airline flying. This resulted in the airline witnessing a 31 per cent decline in capacity, while revenue fell 27 per cent to Rs 1,300 crore, from Rs 1,769 crore in the year-ago quarter.

The net loss has widened from Rs 173 crore during the September-December 2013 quarter, said the airline whose co-founder Ajay Singh has returned as its promoter after buying stake from theMaran family.

The new owners are expected to recapitalise SpiceJet once regulators have approved the bailout deal.

"With imminent recapitalization, our focus going forward will be on re-negotiating contracts and settling outstandings, which are together expected to bring down costs considerably," said Chief Financial Officer Kiran Koteshwar.

The stock opened at Rs 19, touched a high of Rs 20 and a low of Rs 19.25 on the BSE. A total of 1,529,471 shares changed hands on the BSE so far.