Corporate Aug 11, 2012
Vijay Mallya-controlled Kingfisher Airlines today reported a wider net loss of Rs 650 crore for the first quarter of this financial year compared with a loss of Rs 263.5 crore a year ago, CNBC-TV18 reported.
Income from operations of the troubled airline nose dived to Rs 301.4 crore from Rs 1907 crore a year ago.
On Friday the shares of the company, already trading below their book value, fell 11 percent to close at Rs 7.40, on fears that the company may book huge losses during the quarter, a PTI report said.
Intra-day, the scrip plunged 12.62 percent to a record low of Rs 7.27.
Though rivals Jet Airways and SpiceJet had posted profits in the June quarter, analysts were not expecting anything positive from the earnings due to the heavy debt burden of the company, the report said.
Kingfisher shares have fallen about 65 percent so far this year as against a gain of 13.14 percent in the BSE benchmark Sensex.
Kingfisher on Thursday cancelled at least 16 flights, 10 from Mumbai and six from Delhi. About 30 flights were cancelled on Wednesday as well.
The troubles of the airline aggravated in a death spiral during April-June after it staff struck work over delayed payment of salary.
Reacting to the latest agitation by the employees, Chairman Mallya had said that if the employees did not return, he would stop funding the airline.
"If a section of our colleagues feel that their actions (not flying) are justified and that they know best, they can elect to leave our company. But such threats and disruptive actions are not acceptable...the actions of a few can adversely affect all of us," he had told his staff.
An article in Firstpost argued that it is time for his employees to call his bluff. "It won't save them their jobs, but it will puncture Mallya's claim that he will shut down the airline if they don't fall in line," it said.
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