KFA Q3 loss at Rs 755 cr

In the third quarter ended December 31, 2012, when it had no income but only expenditure, Kingfisher Airlines recorded a loss of Rs 755 crore, mainly on account of finance costs Rs 401 crore, aircraft leasing charges Rs 182 crore and employee costs Rs 67.64 crore, including payment of pending salaries.

In the second quarter, it had posted loss of Rs 754 crore and earned Rs 200 crore from limited operations.

The operational losses are actually higher at Rs 1,117.86 crore, reduced by credit of Rs 362.69 crore on account of deferred tax asset arising out of unabsorbed depreciation and business losses for the quarter ended December 31, 2012. 

In a note that forms part of the quarterly financial results filed by the Vijay Mallya-led airlines filed with the Bombay Stock Exchange, it said that the credit has been taken as the company was certain of the same, though its auditors expressed an opinion to the contrary.

The auditors also said, in their limited review report of the results that had the company followed generally accepted accounting principles, the net loss would have been Rs 1,090 crore.

The October-December quarter was one when the beleaguerred airline’s fortunes nosedived; its  licenced was cancelled, lenders repeatedly refused to extend any lifeline, employees stepped up their protests including a threat to file a petition to wind up the company and finally, the aviation regulator refusing to accept its revival plan.

These apart, talks of foreign investors including airlines evincing interest to pick up stake in the debt-laden airline remained just that, precipitating matters both for its lenders with an exposure of about Rs 7,500 crore, vendors and employees.

However, the Kingfisher Airlines’ stock continues to be highly traded on the bourses, aided by sporadic speculation of stake sale.

 It ended at Rs 12.18 on Tuesday, down 2.87 per cent from its previous close; 38 lakh shares were traded on the BSE.