Spicejet shares slump nearly 10 percent

Scrip of budget carrier SpiceJet Monday slumped by as much as 10 percent on back of its auditor cautioning against the airline's declining financial and assest worth.

The company's shares slumped 9.26 percent at the closing bell, but had fallen by as much as 11 percent in the Monday's intra-day at the Bombay Stock Exchange (BSE).

The scrip, which opened at Rs.15.23, closed the day's trade at Rs.13.82 after touching an intra-day high of 14.70 and a low of Rs.13.50.

The company's scrip crashed after it reported its fifth consecutive quarterly loss. The company was, however, to narrow the losses to Rs.310 crore in the three months ending Sep 30 from Rs.560 crore in the corresponding period of the corresponding quarter last year.

The company's auditors SR Batliboi & Associates pointed out that the total liabilities exceed the company's total assets by Rs.1,459.73 crore.

"These conditions indicate the existence of a material uncertainty that may cast significant doubt about the company's ability to continue as a going concern."

SpiceJet has been disrupting the markets by announcing a slew of discount schemes for the last one year.

"The management believes that there is still further significant potential on both improving revenues. The improved performance further demonstrates that the turnaround effort, which is still work-in-progress, has gained momentum during the quarter," SpiceJet said in a statement.

Not only has it reduced ticket prices but is also trimming costs, fleet size and overall expenditures, attempting a turnaound.