SPICEJET LIMITED Regd Office : Kamaraj Domestic Terminal, Chennai Airport, Chennai 600 027 CIN: L51909TN1984PLC082330 E-mail: investors@spicejet.com | Website: www.spicejet.com Telephone: +91 124 391 3939 | Facsimile: +91 124 391 3888 Part I - Statement of Unaudited Financial Results for the quarter ended June 30, 2015 (Rupees in Lakhs except EPS and Shareholding data) | |||||
S.No. | Particulars | Quarter ended | Year ended | ||
Unaudited 30-Jun-15 | Audited 31-Mar-15 (Refer note 10) | Unaudited 30-Jun-14 | Audited 31-Mar-15 | ||
1 | Income from operations
Total Income from operations Expenses Total expenses Profit / (Loss) from operations before other income, finance costs and extraordinary items (1-2) Other Income (Note 6) Profit / (Loss) from ordinary activities before finance costs and extraordinary items (3+4) Finance Costs Profit / (Loss) before extraordinary items (5-6) Extraordinary items, net (Note 9) Profit / (Loss) before tax (7-8) Tax Expense Net Profit / (Loss) for the period (9-10) Paid-up Equity Share Capital (Face Value Rs.10/- per Equity Share) Reserves excluding Revaluation reserves Earnings Per Share (before extraordinary items) Earnings Per Share (after extraordinary items) | 110,323.5 | 78,256.9 | 167,562.9 | 517,273.4 |
307.4 | 375.7 | 296.0 | 2,879.1 | ||
110,630.9 | 78,632.6 | 167,858.9 | 520,152.5 | ||
2 | |||||
35,888.0 | 28,622.3 | 77,331.3 | 240,962.2 | ||
16,080.1 | 11,538.6 | 27,427.5 | 86,438.8 | ||
8,274.1 | 6,885.3 | 10,825.1 | 38,150.2 | ||
14,546.1 | 11,430.9 | 19,005.6 | 67,211.6 | ||
300.1 | 6,583.9 | 4,701.4 | 31,846.7 | ||
4,107.9 | 2,937.5 | 4,233.6 | 15,966.4 | ||
11,589.3 | 10,748.6 | 13,867.2 | 53,746.6 | ||
2,928.1 | 2,990.9 | 3,227.9 | 12,662.5 | ||
9,847.5 | 7,144.8 | 17,675.1 | 51,652.6 | ||
103,561.2 | 88,882.8 | 178,294.7 | 598,637.6 | ||
3 | 7,069.7 | (10,250.2) | (10,435.8) | (78,485.1) | |
4 | 2,672.8 | 9,170.1 | 2,895.4 | 19,998.1 | |
5 | 9,742.5 | (1,080.1) | (7,540.4) | (58,487.0) | |
6 | 2,557.8 | 2,803.6 | 4,870.0 | 16,353.9 | |
7 | 7,184.7 | (3,883.7) | (12,410.4) | (74,840.9) | |
8 | - | 6,135.5 | - | 6,135.5 | |
9 | 7,184.7 | 2,251.8 | (12,410.4) | (68,705.4) | |
10 | - | - | - | - | |
11 | 7,184.7 | 2,251.8 | (12,410.4) | (68,705.4) | |
12 | 59,945.0 | 59,945.0 | 53,528.1 | 59,945.0 | |
13 | (221,446.7) | ||||
14 | |||||
1.20 | (0.65) | (2.32) | (13.38) | ||
0.97 | (0.65) | (2.32) | (13.38) | ||
15 | |||||
1.20 | 0.38 | (2.32) | (12.28) | ||
0.97 | 0.33 | (2.32) | (12.28) | ||
* - Quarterly numbers are not annualised. | |||||
Part II - Select information for the quarter ended June 30, 2015 | |||||
S.No. | Particulars | Quarter ended | Year ended | ||
Unaudited 30-Jun-15 | Audited 31-Mar-15 | Unaudited 30-Jun-14 | Audited 31-Mar-15 | ||
A | PARTICULARS OF SHAREHOLDING Public Shareholding
Promoters and promoter group shareholding a) Pledged / Encumbered
b) Non-encumbered
| 237,914,559 | 237,914,559 | 249,021,425 | 237,914,559 |
1 | |||||
39.69% | 39.69% | 46.52% | 39.69% | ||
2 | |||||
120,657,932 | 116,057,932 | 83,057,932 | 116,057,932 | ||
33.37% | 32.10% | 29.01% | 32.10% | ||
20.13% | 19.36% | 15.52% | 19.36% | ||
240,877,692 | 245,477,692 | 203,201,826 | 245,477,692 | ||
66.63% | 67.90% | 70.99% | 67.90% | ||
40.18% | 40.95% | 37.96% | 40.95% | ||
Particulars | Quarter ended June 30, 2015 | |
B | INVESTOR COMPLAINTS Pending as at the beginning of the quarter Received during the quarter Disposed of during the quarter Remaining unresolved as at the end of the quarter | - 14 14 - |
The above unaudited financial results for the quarter ended June 30, 2015 have been reviewed by the Audit Committee at their meeting held on July 24, 2015, and approved by the Board of Directors at their meeting held on July 28, 2015.
Accounting Standard (AS) 17 on 'Segment Reporting' requires the Company to disclose certain information about operating segments. The Company is managed as a single operating unit that provides air transportation only and has no other segment operation.
Aircraft lease rentals of Rs. 16,080.1 lakhs in S. No. 2 (a) of the statement of unaudited financial results includes expenses incurred for the wet lease of 4 aircraft during the current quarter.
During the previous year, (a) the shareholders had approved the issuance of 189,091,378 share warrants of Rs. 10 each to the Mr. Kalanithi Maran and M/S KAL Airways Private Limited ("outgoing promoters"), and (b) the Board of Directors has approved the issuance of up to 3,750,000 non-convertible cumulative redeemable preference shares ("CRPS") to the outgoing promoters, in respect of which the approval of shareholders is awaited. In respect of these securities, the Company has received amounts aggregating Rs. 35,049.7 lakhs during the previous year, and Rs. 5,000 lakhs during the current quarter from the outgoing promoters. Under the terms of the relevant approvals and having regard to the terms of the SSPA, these advances are to be adjusted against amounts that fall due upon allotment of share warrants and CRPS to the outgoing promoters. Accordingly, these have been disclosed in the balance sheet as advances money received against securities proposed to be issued. However, as the time limit for the completion of the Company's obligations under the relevant provisions of the Companies Act 2013 (the "Act") has expired as of date (except in respect of Rs. 5,000 lakhs received by the Company in the current quarter), it attracts the applicable consequent provisions, including penal, as well as the deeming provisions of the Act relating to acceptance of deposits. The management is in the process of undertaking various actions, including the allotment of these securities and compounding of non-compliance referred to above, and is also of the view that any consequent effects will not have a material impact on the unaudited financial results of the Company. Accordingly, no adjustments have been made for any consequential penal effects in this regard.
The Company has accrued for costs of Rs. 11,778.1 lakhs as at June 30, 2015 (March 31, 2015 - Rs. 13,607.7 lakhs) relating to redelivery to lessors, of 13 Boeing aircraft leased by the Company (March 31, 2015 - 14 Boeing aircraft) which have been retired from commercial use, based on management's best estimate of these liabilities (having regard to various factors including lease terms and past experience of aircraft redelivery costs incurred by the Company) and without prejudice to the rights of the Company in this regard. Based on its assessment, management is confident that a further claim of Rs 3,825.0 lakhs made on the Company in this regard is not likely to devolve on the Company. Further liabilities in this regard, if any, will be accounted for in the period they are determined to be payable.
During the current quarter, consequent to finalization of terms of settlement with an aircraft lessor, accruals made in earlier periods aggregating Rs. 708.7 lakhs were written back as detailed in Note 6 below.
(i) Other income of Rs. 2,672.8 lakhs in S.No. 4 of the attached statement of audited financial results include reversals of the following amounts of liabilities / provisions made in earlier periods:
Rs. 708.7 lakhs (March 31, 2015 - Rs. 6,362.0 lakhs) of liabilities consequent to finalization of settlement terms of an earlier lease termination, with the lessor, and Rs. 255.8 lakhs (March 31, 2015 - Rs. 916.3 lakhs) of certain employee related accruals.
(ii) In the last quarter of the previous financial year, the Company had obtained waivers of expenses in respect of aircraft lease rent, aircraft maintenance expenditure and interest on loans aggregating Rs. 2,897.90 lakhs have been netted off against the corresponding expenses in the comparative results for the quarter ended March 31, 2015.
As at June 30, 2015, the Company has accumulated losses of Rs. 313,895.4 lakhs against shareholders' funds (including advance towards subscription of securities) of Rs. 199,611.4 lakhs. As of this date, the Company's total liabilities exceed its total assets by Rs. 114,284.0 lakhs. Historically, the Company's operating results have been materially affected by various factors, including high aviation turbine fuel ("ATF") costs, significant depreciation in the value of the currency, and pricing pressures. On account of its operational and financial position, the Company had also delayed payments to various parties, including vendors and its dues to statutory authorities, over the last 12-18 months. These factors have resulted in a material uncertainty that may cause significant doubt about the Company's ability to continue as a going concern.
In the current and previous quarters, the Company has entered into settlement agreements with certain lessors and vendors in respect of past overdue payments, and also negotiated deferred payment plans with certain vendors for overdue amounts. The Company has also discharged a significant portion of its overdue obligations to statutory authorities in the previous quarter. The Company continues to negotiate with vendors for settlements, improved commercial terms and better credit facilities, and is in the process of arranging additional working capital finance from as well as by way of trade financing, to improve its short-term liquidity position. The Company has also received advances of Rs. 5,000 lakhs during the current quarter from the Outgoing Promoters towards an option to subscribe to up to 3,750,000 CRPS, proposed to be issued to them, subject to any necessary approvals. The Company is evaluating and exploring various courses of action for raising funds for the Company's operations, including options for strategic funding. Having regard to recent operational profitability, management believes it will be in a better position to raise funds, as may be required.
The Company continues to implement various measures, such as enhancing customer experience, improving selling and distribution, revenue management, fleet rationalization, optimizing aircraft utilization, redeployment of capacity in key focus markets, renegotiation of contracts and other cost control measures, to help the Company establish consistent profitable operations and cash flows. The Company is also exploring options to increase its aircraft fleet size over the rest of the year in order to enhance the scale and depth of its operations across strategic markets. These measures as well as improvement in the macroeconomic conditions for the airline industry in the markets in which the Company operates, such as the recent reduction in ATF prices, consistent improvement in capacity utilization and unit revenues, as well as enhancement in ancillary revenues, are expected to increase operational efficiency and achieve profitability.
In view of the foregoing, management is of the view that the Company will be able to raise funds as necessary to achieve profitable operations and meet its liabilities as they fall due. Accordingly, these financial results have been prepared on the basis that the Company will continue as a going concern for the foreseeable future.
During the current quarter, the Company has entered into settlement agreements with one of its aircraft lessors, who had, during the previous year, served notice of termination of leases in respect of five aircraft on the Company, and had also filed petitions in Court seeking repossession of these aircraft, for the lease of the five aircraft mentioned thereunder. The Company has substantially satisfied the conditions precedent to the settlements as of date, and management is confident of fulfilling the remaining conditions in due course, consequent to which no adjustments have been made to the accompanying statement of unaudited financial results in this regard.
Extraordinary items as at March 31, 2015, represent insurance claims accounted for by the Company during the quarter ended on that date, pertaining to one Bombardier aircraft that sustained extensive damage and was declared a total loss.
The figures for the quarter ended March 31, 2015, are balancing figures between audited figures in respect of the full financial year ended March 31, 2015, and the un-audited published year to-date figures up to December 31, 2014, being the end of the third quarter of the financial year which was subjected to limited review.
Previous quarters' / year's figures have been regrouped / reclassified wherever considered necessary to conform to current quarter's classification.
Sd/-
Place: Gurgaon, Haryana Ajay Singh
Date: July 28, 2015 Chairman and Managing Director
SpiceJet Ltd. issued this content on 01 February 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 31 January 2016 20:03:16 UTC
Original Document: http://corporate.spicejet.com/Content/pdf/BSE-Q1-16.pdf
