SpiceJet soars 12% despite Q4 net loss rising to Rs 321.5 crore

NEW DELHI: After slipping as much as 6.3 per cent in early trade on Monday, SpiceJet Ltd soared 12% on the Bombay Stock Exchange.

The budget carrier announced a record annual loss and second biggest quarterly loss since inception, drawing major concerns on its ability to keep afloat without an immediate fund infusion.he

The airline's full year loss widened to Rs 1003.24 crore, up more than five times on year, even though sales rose 13per cent to Rs 6304.23 crore. The airline posted a net loss of Rs 321.51 crore for the Jan-March quarter, with losses increasing 73per cent on year.

Sales rose 10 per cent to Rs 1,573.40 crore. It posted its highest ever loss of Rs 559.49 crore in the July-September quarter. The airline's auditors reiterated that the earnings raise serious concerns on the company's ability to continue as a "going concern", PTI reported.

The airline itself attributed losses to economic slowdown and the rupee depreciation.

"The year ended March 31, 2014 was perhaps the most challenging period in Indian aviation history. The sharp depreciation of the Indian Rupee during the quarter ended September 30 2013 was unprecedented," SpiceJet said in a press release.

"Given the fact that over 75 per cent of any Indian airline's cost is influenced by the US Dollar, the effects of the exchange rates on a broad spectrum of cost heads were crippling," added the release.