MIRA
INFORM REPORT
|
Report Date : |
24.08.2012 |
IDENTIFICATION DETAILS
|
Name : |
SPICEJET LIMITED |
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Registered
Office : |
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Country : |
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Financials (as
on) : |
31.03.2011 |
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Date of
Incorporation : |
09.02.1984 |
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|
Com. Reg. No.: |
18-082330 |
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Capital
Investment / Paid-up Capital : |
Rs.4053.780 Millions |
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|
|
CIN No.: [Company Identification
No.] |
L51909TN1984PLC082330 |
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|
|
|
Legal Form : |
A Public Limited Liability company. The company’s Shares are Listed on
the Stock Exchange. |
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|
Line of Business
: |
To provide domestic airlines and passenger and cargo services. |
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|
|
|
No. of Employees
: |
2349 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
B (31) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Maximum Credit Limit : |
USD 12800000 |
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|
Status : |
Moderate |
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|
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Payment Behaviour : |
Slow |
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Litigation : |
Clear |
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Comments : |
Subject is an old and established company having moderate track. There
appears some accumulated losses recorded by the company. However, Trade relations
are reported as fair. Business is active. Payments are reported to be slow. The company can be considered for business dealings with some
cautions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – June 30, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’’ LIST STATUS
Subject’s name is not enlisted as a defaulter in
the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
LOCATIONS
|
Registered Office : |
|
|
Tel. No.: |
Not Available |
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Fax No.: |
Not Available |
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E-Mail : |
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Website : |
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Corporate Office : |
319, Udyog Vihar, Phase – IV, Gurgaon – 122016, |
|
Tel. No.: |
91-124-3913939 |
|
Fax No.: |
91-124-3913844 |
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|
Branch Office: |
Near Steel Gate Bus Stop Terminal –I |
DIRECTORS
As on 31.03.2011
|
Name : |
Kalanithi Maran |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Kavery Kalanithi |
|
Designation : |
Director |
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|
Name : |
Nicholas Martin Paul |
|
Designation : |
Director |
|
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|
Name : |
M. K. Harinarayanan |
|
Designation : |
Director |
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|
Name : |
Mr. J. Ravindran |
|
Designation : |
Director |
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|
Name : |
Mr. S. Sridharan |
|
Designation : |
Director (upto 12.08.2011) |
KEY EXECUTIVES
|
Name : |
A. K. Maheshwary |
|
Designation : |
Vice President (Legal) and Company Secretary |
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MANAGEMENT COMMITTEE : |
|
|
|
|
|
Name : |
Mr. Neil Raymond Mills |
|
Designation : |
Chief Executive Officer |
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|
Name : |
S. Natrajhen |
|
Designation : |
Chief Operating Officer |
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|
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|
Name : |
Mr. R. Neelakantan |
|
Designation : |
Chief Financial Officer |
|
|
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|
Name : |
Mr. Sridharan Samyukth |
|
Designation : |
Chief Commercial Officer |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.06.2012
|
Category of Shareholder |
Total No. of
Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
78810300 |
16.27 |
|
|
156518005 |
32.32 |
|
|
235328305 |
48.59 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
235328305 |
48.59 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
59329552 |
12.25 |
|
|
540000 |
0.11 |
|
|
17385142 |
3.59 |
|
|
77254694 |
15.95 |
|
|
|
|
|
|
55111580 |
11.38 |
|
|
|
|
|
Individual shareholders holding nominal share capital up to Rs.0.100
Million |
55111580 |
11.38 |
|
Individual shareholders holding nominal share capital in excess of
Rs.0.100 Million |
56153083 |
11.59 |
|
|
7141480 |
1.47 |
|
|
11000 |
0.000 |
|
|
5491314 |
1.13 |
|
|
1639166 |
0.34 |
|
|
171766731 |
35.46 |
|
Total Public shareholding (B) |
249021425 |
51.41 |
|
Total (A)+(B) |
48349730 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
|
|
- |
- |
|
|
- |
- |
|
|
- |
- |
|
Total (A)+(B)+(C) |
405549730 |
- |
(1) Indian
Individuals / Hindu Undivided Family
BUSINESS DETAILS
|
Line of Business : |
To provide domestic airlines and passenger and cargo services. |
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Products : |
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GENERAL INFORMATION
|
No. of Employees : |
2349 (Approximately) |
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Bankers : |
·
Allahabad Bank ·
Yes Bank Limited ·
ICICI Bank Limited ·
HDFC Bank Limited ·
City Union Bank Limited ·
Citibank N.A. |
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Facilities : |
*Includes amounts due within one year: Working Capital
Demand Loan from Bank, including interest thereon – Rs.505.400 Millions External commercial borrowings – Rs. Nil |
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Banking
Relations : |
-- |
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|
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Auditors : |
|
|
Name : |
S. R. Batliboi and Associates Chartered Accountants |
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|
|
|
Party exercising
significant influence : |
·
Kal Airways Private Limited and Mr. Kalanithi
Maran from November 11, 2010 ·
Royal Holdings Service Limited, |
|
|
|
|
Enterprises over
which parties above or their relatives have control/significant influence ('Affiliates')
: |
·
Sun TV Network Limited (from November 11, 2010) ·
Digital Radio ( |
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|
|
|
Subsidiary
company : |
·
Spice Enterprises Private Limited (ceased to be a
related party on September 11, 2009) |
CAPITAL STRUCTURE
After 30.09.2011
Authorised Capital : Rs.5650.000 Millions
Issued, Subscribed & Paid-up Capital : Rs.4843.497 Millions
As on 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
500000000 |
Equity Shares |
Rs.10/- each |
Rs.5000.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
405378065 |
Equity Shares |
Rs.10/- each |
Rs.4053.780
Millions |
|
|
|
|
|
Notes:
*Includes
a) 147,215,040
equity shares of Rs.10/- each issued on conversion of Foreign Currency
Convertible Bonds ('FCCBs') during the year.
b) 15,360,715
equity shares of Rs.10/- each issued on conversion of share warrants during the
year.
c) 919,600 equity
shares of Rs.10/- each issued under the Company's Employee Stock Option Scheme
2007
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
4053.780 |
2418.830 |
2410.200 |
|
|
2] Share Warrants |
0.000 |
60.610 |
60.610 |
|
|
3] Stock options outstanding |
52.670 |
102.820 |
0.000 |
|
|
4] Reserves & Surplus |
6316.800 |
2200.770 |
2072.940 |
|
|
5] (Accumulated Losses) |
(7212.200) |
(8223.750) |
(8838.240) |
|
|
NETWORTH |
3211.050 |
(3440.720) |
(4294.490) |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
302.170 |
341.290 |
332.700 |
|
|
2] Unsecured Loans |
555.400 |
4041.630 |
4555.390 |
|
|
TOTAL BORROWING |
857.570 |
4382.920 |
4888.090 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
FOREIGN CURRENCY MONETARY ITEM TRANSLATION DIFFERENCE ACCOUNT |
0.000 |
18.950 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
4068.620 |
961.150 |
593.600 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
867.480 |
670.010 |
675.660 |
|
|
Capital work-in-progress (including capital advances) |
6114.300 |
3249.140 |
1852.760 |
|
|
|
|
|
|
|
|
INVESTMENT |
0.000 |
0.000 |
0.000 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
203.500
|
147.210 |
124.720 |
|
|
Sundry Debtors |
171.820
|
189.600 |
123.930 |
|
|
Cash & Bank Balances |
1922.310
|
4506.950 |
3079.960 |
|
|
Other Current Assets |
0.000
|
0.000 |
108.000 |
|
|
Loans & Advances |
1816.650
|
1094.950 |
1542.870 |
|
Total
Current Assets |
4114.280
|
5938.710 |
4979.480 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
2535.770
|
1548.470 |
1563.650 |
|
|
Other Current Liabilities |
4408.220
|
5873.470 |
4093.580 |
|
|
Provisions |
83.450
|
1474.770 |
1257.070 |
|
Total
Current Liabilities |
7027.440
|
8896.710 |
6914.300 |
|
|
Net Current Assets |
(2913.160)
|
(2958.000) |
(1934.820) |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
4068.620 |
961.150 |
593.600 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Operating Revenue |
28795.080 |
21810.780 |
16894.480 |
|
|
|
Other Income |
810.960 |
610.130 |
1240.900 |
|
|
|
TOTAL (A) |
29606.040 |
22420.910 |
18135.380 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Operating Expenses |
22535.940 |
16939.560 |
17034.310 |
|
|
|
Employees remuneration and benefits |
2406.150 |
1814.110 |
1548.210 |
|
|
|
Selling Expenses |
2237.190 |
1921.520 |
1095.530 |
|
|
|
General and Administration Expenses |
943.930 |
821.560 |
1408.000 |
|
|
|
Loss on Settlement of Litigations |
0.000 |
0.000 |
187.820 |
|
|
|
TOTAL (B) |
28123.210 |
21496.750 |
21273.870 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
1482.830 |
924.160 |
(3138.490) |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
112.040 |
113.820 |
160.220 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
1370.790 |
810.340 |
(3298.710) |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
89.100 |
76.430 |
(72.540) |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX AND PRIOR PERIOD ITEMS (E-F)
(G) |
1281.690 |
733.910 |
(3371.250) |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
(247.370) |
(63.660) |
(33.190) |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
AND BEFORE PRIOR PERIOD ITEMS (G-H) (I) |
1034.320 |
670.250 |
(3404.440) |
|
|
|
|
|
|
|
|
|
|
PRIOR PERIOD ITEMS |
(22.770) |
(55.760) |
121.230 |
|
|
|
|
|
|
|
|
|
|
NET PROFIT |
1011.550 |
614.490 |
(3525.670) |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
(8223.750) |
(8838.240) |
(5074.480) |
|
|
|
FOREIGN
CURRENCY MONETARY ITEM TRANSLATION DIFFERENCE ACCOUNT |
0.000 |
0.000 |
(238.090) |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
(7212.200) |
(8223.750) |
(8838.240) |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Passenger revenue credit cards |
0.000 |
455.810 |
444.080 |
|
|
|
Lease rentals |
0.000 |
0.000 |
77.170 |
|
|
|
Reimbursement/ credit from supplies/others |
0.000 |
105.960 |
311.300 |
|
|
|
Profit on sale and lease back |
0.000 |
34.670 |
617.860 |
|
|
TOTAL EARNINGS |
0.000 |
596.440 |
1450.410 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Capital Goods |
0.000 |
0.000 |
8.080 |
|
|
|
Components and Spares parts |
0.000 |
284.200 |
178.140 |
|
|
|
Rotables/ galley equipments/ tools |
0.000 |
5.830 |
119.330 |
|
|
TOTAL IMPORTS |
0.000 |
290.030 |
305.550 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
|
|
|
|
|
- Basic |
2.80 |
2.55 |
(14.64) |
|
|
|
- Diluted |
2.49 |
1.56 |
(14.64) |
|
QUARTERLY RESULTS
(Rs.
In Millions)
|
PARTICULARS |
30.06.2011 |
30.09.2011 |
31.03.2012 |
31.03.2012 |
30.06.2012 |
|
|
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
4th Quarter |
5th Quarter |
|
Net Sales |
9456.410 |
7664.930 |
11758.340 |
11130.020 |
14666.920 |
|
Total Expenditure |
10124.200 |
9983.020 |
11948.770 |
13134.550 |
13905.280 |
|
PBIDT (Excl OI) |
(667.790) |
(2318.090) |
(190.430) |
(2004.530) |
761.640 |
|
Other Income |
33.430 |
43.060 |
62.620 |
72.310 |
121.620 |
|
Operating Profit |
(634.360) |
(2275.030) |
(127.810) |
(1932.220) |
883.260 |
|
Interest |
59.910 |
88.660 |
143.200 |
180.550 |
250.160 |
|
Exceptional Items |
0.000 |
0.000 |
0.00 |
(252.940) |
128.640 |
|
PBDT |
(694.270) |
(2363.690) |
(271.010) |
(2365.710) |
761.740 |
|
Depreciation |
25.370 |
36.980 |
121.590 |
126.040 |
137.320 |
|
Profit Before Tax |
(719.640) |
(2400.670) |
(392.600) |
(2491.750) |
624.420 |
|
Tax |
0.000 |
0.000 |
0.000 |
0.000 |
62.910 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
(719.640) |
(2400.670) |
(392.600) |
(2491.750) |
561.510 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
|
Net Profit |
(719.640) |
(2400.670) |
(392.600) |
(2491.750) |
561.510 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
3.41
|
2.74 |
19.44 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
4.45
|
3.36 |
(19.95) |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
25.72
|
11.10 |
(59.61) |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.39
|
0.21 |
(0.78) |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
2.45
|
3.86 |
2.75 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.58
|
0.66 |
0.72 |
LOCAL AGENCY FURTHER INFORMATION
|
Available
in Report [Yes/No] |
|
|
Year
of Establishment |
Yes |
|
Locality
of the Firm |
Yes |
|
Constitution
of the firm |
Yes |
|
Premises
details |
No |
|
Type
of Business |
Yes |
|
Line
of Business |
Yes |
|
Promoters
background |
No |
|
No.
of Employees |
Yes |
|
Name
of Person Contacted |
No |
|
Designation
of contact person |
No |
|
Turnover
of firm for last three years |
Yes |
|
Profitability
for last three years |
Yes |
|
Reasons
for variation <> 20% |
- |
|
Estimation
for coming financial year |
- |
|
Capital
the business |
Yes |
|
Details
of sister concerns |
Yes |
|
Major
Suppliers |
No |
|
Major
Customers |
No |
|
Payment
Terms |
No |
|
Export
/ Import Details [If Applicable] |
No |
|
Market
Information |
- |
|
Litigations
that the firm / promoter involved in |
- |
|
Banking
Details |
Yes |
|
Banking
Facility Details |
Ye |
|
Conduct
of the banking account |
- |
|
Buyer
visit details |
- |
|
Financials,
if provided |
Yes |
|
Incorporation
details, if applicable |
Yes |
|
Last
accounts filed at ROC |
Yes |
|
Major
Shareholders, if applicable |
No |
|
Date of Birth of
Proprietor/Partner/Director, if available |
No |
|
PAN
of Proprietor/Partner/Director, if available |
No |
|
Voter
ID No of Proprietor/Partner/Director, if available |
No |
|
External Agency
Rating, if available |
No |
BACKGROUND
Subject
('SpiceJet' or the 'Company') was incorporated on February 9, 1984 as a limited
company under the Companies Act, 1956 and is listed on the Bombay Stock
Exchange Limited ('BSE'). The Company is engaged in the business of providing
air transport services for the carriage of passengers. The Company is a low
cost carrier ('LCC') operating under the brand name of 'SpiceJet' in
During the year, pursuant
to an Open Offer made by KAL Airways Private Limited and Mr. Kalanithi Maran
(collectively referred to as the 'Acquirers'), the Acquirers have acquired, in
aggregate, 156,528,305 equity shares of the Company constituting 38.66% of the
then paid-up capital of the Company, including 31,077,500 equity shares
acquired from Royal Holdings Services Limited (the 'Erstwhile Promoter').
Consequently, the Acquirers have become the largest shareholders in the Company
and the Promoters of the Company.
MANAGEMENT
DISCUSSION AND ANALYSIS
INDUSTRY STRUCTURE
AND DEVELOPMENTS
Global and Indian
Economy
The economy grew
at 8.5% in 2010-11 buoyed by a 6.6% growth in the agricultural output. However,
the inflation challenge that
The Deloitte
Global Economic Outlook Q2 2011 report notes - After slowing to a 20-month low
in December 2010, industrial production grew 3.7 percent in January 2011. The
production of capital goods weighed heavily on the sluggish performance as the
sector logged an 18.6% decline during the month. Interestingly, consumer
durables and consumer non-durables recorded growth rates of 23.3% and 6.9%
respectively, indicating that domestic demand is still quite robust and that
the fiscal stimulus program has indeed succeeded in encouraging spending. On
the face of it, the positive movement in industries bodes well for economic
growth. However, growth despite aggressive interest rate hikes by monetary
authorities suggests that consumer demand is still very strong and could very
well fuel demand-side inflation.
Most analysts have
tempered
Indian Aviation
Industry and Domestic Market Trends
Domestic passenger
traffic grew by 18.8% during FY 2010-11 over the previous year while cycling a
heady 16.5% growth during the previous fiscal clearly indicating robustness in
the demand side of the business. The supply-side was however a story of 2
contrasting periods – the first half of the fiscal saw a supply-side growth of
only 8% while the second half saw a 14% growth in capacity which was
concentrated towards the latter part of the year.
Domestic passenger
traffic crossed the 50 Million mark for the first time in
It is significant
to note that despite such robust growth in the domestic aviation market, the
share of Full Service Carriers continued to decline dropping to 31% of the
total domestic travel from 37% during the previous fiscal. Clearly, Low Cost
Carriers is the preferred option for passengers on domestic travel.
With the robust
demand growth, there was a perceptible slow-down in the capacity conversion of
Premium Service aircraft to Low Fare service by two large competitors. Despite
this, the Low Fare product maintained a 24% share of the market and combined
with the growing share of the traffic on Low Cost Carriers nearly accounted for
70% of the domestic traffic.
SpiceJet increased
its market share during FY 2010-11 to 13.4% from 12.4% in the previous
financial year and touched a historic high of 14.3% during January 2011.
Continuing the
trend from the previous fiscal, the only market-share gainers in the domestic
market were the Low Cost Airlines including SpiceJet gained 1.0 point to reach
an annual market share of 13.4%.
Domestic
Demand-Supply Scenario
During FY2009-10,
the industry had seen the demand supply gap narrowing with capacity growing
only at 4% while domestic demand grew by 16%. This trend continued during the
first half of FY2010-11 too with a capacity growth of 8% while the demand grew
by 17%. However, over the second half of the fiscal this trend started showing
signs of reversal. During the Oct-Dec 2010 quarter the industry witnessed an
11% capacity growth and a 19% demand growth and during the Jan-Mar quarter the
capacity growth was nearly 16% while the demand growth was 21%.
Recognitions and
Awards
At SpiceJet, they
continue to listen to the feedback from their customers and based on this they
continued to refine their on-board menu and introduced a wider range of Hot
Indian Meals toward the end of FY2010-11.
During the last
two years SpiceJet received the following awards:
·
·
Award for Best Website at 'World Low Cost Airlines
Asia Pacific Conference' (January 2010,
·
Outlook Traveler's Best Low Cost Airline (Feb 2008
& Feb 2010)
·
Smart Travel Asia's Top 5 Best Budget Airlines in
Asia (Aug 2010) and in Top 10 list for 2 consecutive years (Aug 2008 & Sept
2009,
·
World Travel Market Award for multi-channel
approach in distribution (November 2009,
·
National Award (ICWAI) for excellence in Cost
Management (March 2009)
·
CIO 100 Award for IT efforts for customer
satisfaction and business growth (2007, 2008 & 2009)
FUTURE OUTLOOK FOR
SPICEJET
SpiceJet is the
only listed airline in
The industry
outlook for FY 2011-12, is a little challenging. The second half of 2010-11
clearly demonstrated a surge in capacity induction and they expect that
industry traffic growth will lag behind capacity growth for FY12 by atleast
4-5% points. This would mean that the industry would experience lower seat
factors going forward. Also, Q4 FY11 clearly demonstrated the desperation by some
of their larger competitors to irrationally drop fares in an effort to boost
their seat-factors. They can clearly expect that yields during FY12 will remain
under severe pressure due to these factors.
The rise in Crude
Oil prices continued unabated during FY11 with 12 consecutive fortnightly
increases in fuel price from October 2010 onwards. They expect that fuel prices
will stabilize at these elevated levels especially with the current level of
political uncertainty in the Middle-East and North African oil-producing
nations. This will result in large fuel-cost driven cost pressures during FY
2012.
SpiceJet's foray
into newer Tier-II and Tier-III markets, on the back of the Q-400 NextGen Turbo-prop
aircraft during Q2 of FY12 will open up a completely new market for the
company. The company has announced its plans for selecting
The Q-400 routes
will open up short-haul routes that are currently only served by some of the
Full Service competitors and is strategically a very different direction than
some of SpiceJet's direct low-cost competitors. The company is very optimistic
that this strategic differentiation will add immensely to the share-holder
value of the business.
With the planned
induction of 5 new B-737 aircraft in 2011-12 SpiceJet will continue to grow
their fleet of 28 B-737 aircraft as on March 31, 2011 while taking delivery of
11 new Q-400 Next Gen Turbo-prop aircraft from Bombardier Inc.
With the Boeing
fleet, the company will continue to augment its current domestic network and
increase frequency on high potential routes. Having seen reasonable success
with the initial foray into
With a
differentiated strategic ability with the induction of the Q-400 turbo-prop
aircraft and the added international expansion SpiceJet believes that their
business model will be robust in the long-term to add great value to their
employees, partners, customers and share-holders.
UNAUDITED
FINANCIAL RESULTS FOR THE QUARTER ENDED JUNE 30, 2012
(Rs. In Millions)
|
|
Quarter Ended |
Year Ended |
||
|
|
30.06.2012 |
31.03.2012 |
30.06.2011 |
31.03.2012 |
|
|
(UnAudited) |
(UnAudited) |
(UnAudited) |
Audited |
|
Net Sales / Income from
Operations |
14067.440 |
11020.950 |
9037.590 |
39432.620 |
|
Other Operating Income |
599.480 |
109.070 |
148.820 |
547.100 |
|
Total Income |
14666.920 |
11130.020 |
9456.410 |
39979.720 |
|
|
|
|
|
|
|
Total Expenditure |
|
|
|
|
|
a) Operating Expenses |
|
|
|
|
|
-
Aircraft Fuel |
6696.730 |
6205.502 |
5051.720 |
21961.220 |
|
-
Aircraft
Lease Rentals |
1962.550 |
1724.650 |
1319.380 |
6019.070 |
|
-
Airport
Charges |
765.660 |
733.250 |
563.100 |
2595.850 |
|
-
Aircraft
Maintenance |
1341.170 |
1723.260 |
996.690 |
4868.470 |
|
-
Other
Operating Costs |
394.270 |
355.130 |
362.680 |
1381.450 |
|
b) Employee
benefit Expense |
1313.460 |
1274.650 |
7693.100 |
4028.720 |
|
c) Depreciation |
137.320 |
126.040 |
25.370 |
309.980 |
|
d )Other Expenditure |
1431.440 |
1118.590 |
1030.980 |
4308.550 |
|
Total Expenses |
14042.600 |
13260.590 |
10119.230 |
45473.310 |
|
Profit/ (Loss) from operations before other income and interest |
624.320 |
(2130.570) |
(662.820) |
(5493.590) |
|
Other Income |
121.620 |
72.310 |
33.430 |
211.420 |
|
Profit/ (Loss) before Interest |
745.940 |
(2058.260) |
(629.390) |
(5493.590) |
|
Interest |
250.160 |
180.550 |
90.250 |
522.570 |
|
Profit/ (Loss) before Exceptional items |
495.780 |
(2238.810) |
(719.640) |
(5804.740) |
|
Exceptional items |
(128.640) |
252.940 |
- |
252.940 |
|
Profit/ (Loss) before Tax |
624.420 |
(2491.750) |
(719.640) |
(6057.680) |
|
Provision for Taxation |
62.910 |
- |
- |
- |
|
Net Profit/ (Loss) |
561.510 |
(2491.750) |
(719.640) |
(6057.680) |
|
|
|
|
|
|
|
Paid-up Equity Capital (Number
of shares) (Face value Rs,10/- per Equity Shares) |
4843.500 |
4414.500 |
4053.780 |
4414.500 |
|
Reserves excluding Revaluation
Reserves |
- |
- |
- |
- |
|
-Basic EPS – In Rs. |
1.17 |
(5.64) |
(1.78) |
(14.35) |
|
-Diluted EPS – In Rs. |
1.17 |
(5.64) |
(1.78) |
(14.35) |
|
|
|
|
|
|
|
Total Public Shareholding a
defined under clause 40A of the Listing Agreement |
|
|
|
|
|
-Number of Shares |
249021425 |
249021425 |
248849760 |
249021425 |
|
-Percentage of Shareholding |
51.41 |
56.41 |
61.39 |
56.41 |
|
Promoters and Promoter Group Shareholding |
|
|
|
|
|
a) Pledged/Encumbered |
|
|
|
|
|
- Number of Shares |
91675001 |
91675001 |
90967308 |
91675001 |
|
- Percentage of Shares (as a %
of the Total Shareholding of Promoter and Promoter Group) |
38.96 |
47.64 |
58.12 |
47.64 |
|
- Percentage of Shares (as a %
of the Total Share Capital of the Company) |
18.93 |
20.77 |
22.44 |
20.77 |
|
|
|
|
|
|
|
b) Non Encumbered |
|
|
|
|
|
- Number of Shares |
143653304 |
100753304 |
65560997 |
100753304 |
|
- Percentage of Shares (as a %
of the Total Shareholding of Promoter and Promoter Group) |
61.04 |
52.36 |
41.88 |
52.36 |
|
- Percentage of Shares (as a %
of the Total Share Capital of the Company) |
29.66 |
22.82 |
16.17 |
22.82 |
|
INVESTOR COMPLAINTS |
31.06.2012 |
|
Pending at the beginning of the quarter |
6 |
|
Received during the quarter |
22 |
|
Disposed if during the quarter |
26 |
|
Remaining unresolved the end of the quarter |
2 |
NOTES:
1.
The above unaudited financial results for the
quarter ended June 30. 2012 have been reviewed by the Audit Committee and approved
by the Board of Directors at their meeting held on July 30,2012 and have been
subjected to a limited review by the auditors of the Company.
2.
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.
3.
As explained in paragraph 17.1 of schedule 22 of
the audited financial statements for the year ended March 31, 201 1, the
un-accrued interest on inter corporate deposit of Rs. 50.000 Millions under litigation at Bombay High Court since
November 30, 2001, amounts to Rs. 74.710 Millions. Had the Company accrued for
the outstanding interest as described above, the net profit (after tax)
reported for the quarter would have been lower by Rs 59.760 Millions and the
accumulated loss as at June 30, 2012 would have been higher by the same amount.
The Company's management believes that pending finality of the suit filed against
the Company in the Bombay High Court, no interest needs to be accrued on the
deposit at this point in time on account of its defence in the Court
proceedings. The auditors have qualified their audit report for the year ended
March 31,2012 and limited review report for the quarter ended June 30,2012 and
June 30, 201 1 for the above matter. This may be treated as our response to the
observations in the auditors' review report.
4.
The Company had opted for the accounting treatment
prescribed in the notification no G.S.R 225 E dated 31.03.2009 (as amended from
time to time), based on which the foreign exchange differences arising on
reporting of long term monetary liabilities relating to acquisition of
depreciable assets were capitalid to the cost of the relevant assets. However,
the said notification does not cover exchange differences arising from foreign
currency borrowings to the extent that they are regarded as an adjustment to
interest costs as defined in paragraph 4 (e) of AS 16 - Borrowing costs. The
Company has not considered any part of the foreign exchange fluctuation on the
underlying borrowings as interest cost as required under the said standard, as
it believes that the recent movements in currency rates cannot be attributed to
changes in interest rates in view of the high volatility. The auditors have
qualified their audit report for the year ended March 31, 2012 and limited
review report for the quarter ended June 30, 2012 for the above matter. This
may be treated as our response to the observations in the auditors' review
report.
5.
During the previous year, the Company had incurred
certain engine repair costs which were disclosed as an exceptional item in the
relevant period. During the current quarter, the Company has received
warranty claims from the engine manufacturer against these costs incurred. Such
claims have been recognised as income and the same has been disclosed as an
exceptional item.
6.
The Company has achieved significant growth in
revenues for the current quarter and in the previous financial year and has
also managed to achieve better yields. However, the Company's operating results
has been matetially affected by various factors, particularly high aircraft
fuel costs, significant depreciation in the value of the currency and general
economic slowdown. The Company has been actively implementing various measures
such as fare and route rationalization, optimizing aircraft utilization,
improving operational efficiencies, renegotiation of contracts and other cost
control measures to improve the Company's operating results and cash flows. In addition, the
Company continues to explore various options to raise finance in order to meet
its short term and long term obligations, with the promoters infusing dditional
capital in the current quarter. The Company believes that these measures will
not only result in sustainable cash flows, but also enhance the Company's plans
for expansion. Accordingly, the Company's financial statements have been
prepared on a going concern basis whereby the realization of assets and
discharge of liabilities are expected to occur in the normal course of
business.
7.
During the current quarter, the Company has issued
42,900,000 equity shares to Mr. Kalanithi Maran, the promoter of the Company
through preferential issue at a price of Rs. 23.18 per share for a total
consideration aggregating to Rs. 994.422 Millions. As at June 30, 2012, the
Company has utilised the entire proceeds of the preferential issue towards
meeting its expansion program and working capital requirements, in accordance
with the objects of the said issue.
8.
The standalone figures for the quarter ended March
31,2012 are the balancing figures in respect of the full financial year ended March
31,2012 and the un audited published year-to-date figures upto December 31,
2011, being the end of the third quarter of the financial year which was
subjected to a limited review.
9.
Previous periods' I years' figures have been
regrouped 1 reclassified wherever considered necessary to conform to current
period's / years' classification
Contingent
liabilities (As on 31.03.2011)
Claims against the
Company not acknowledged as debts
·
Demand raised under the provisions of. Employees'
State Insurance Act, 1948 for the period November 1996 to September 1997
inclusive of interest and penalty. (The Company has obtained stay against
recovery of said demand from the Hon'ble High Court of Delhi) – Rs. Nil
·
Liability arising out of legal cases filed against
the Company in various Courts/ Consumer Redressal Forums, Consumer Courts,
disputed by the Company – Rs.22.990 Millions
·
Liability arising out of Arbitration proceedings on
account of cancellation of leased premises – Rs.33.32
·
Liability towards labour cases filed against the
Company in various Courts, disputed by the Company – Rs.0.480 Millions
·
Liability towards Penalty levied by customs
department on late payments which is disputed and is pending in the Hon'ble
High Court of Delhi – Rs.82.690 Millions
·
Liability towards additional claim received from a
vendor who was already covered in the settlement scheme approved by the Hon'ble
High Court of Delhi – Rs.17.500 Millions
·
Unaccrued interest – Rs.74.710 Millions
FIXED ASSETS
·
Plant and Machinery
·
Rotable and Tools
·
Office equipment
·
Computers
·
Furniture and Fixture
·
Motor Vehicles
·
Capital expenditure on
leased property
·
Software
BUSINESS DESCRIPTION
Subject is an India-based airline company. SpiceJet Cargo, a
division of SpiceJet airlines, offers safe, on-time and efficient air freight
transportation across
BOARD OF DIRECTORS
Mr. Kalanithi
Maran (Non-Executive Chairman of the Board)
Mr. Kalanithi Maran is Non-Executive Chairman of the Board of subject.
He holds a Bachelor of Commerce from the
Mrs. Kavery Kalanithi
(Non-Executive Director)
Mrs. Kavery Kalanithi is Non-Executive Director of subject.
She holds a Bachelor's Degree in Arts from
PRESS RELEASES
29
emergency, wrong landings since 2010
New
Delhi, December 04 2011 (PTI) -- There were 16 instances of landing under
emergency conditions and 13 wrong landings in the country between 2010 and now,
with Kingfisher Airlines accounting for the largest number of incidents in both
categories, official figures show.
The
Vijay Mallya-owned carrier accounted for eight emergency landings for medical
or technical reasons and seven wrong landings, defined as those which are
either hard landings or involve tail scraping or nose-wheel landings.
Compared
to Kingfisher, Jet Airways accounted for only one emergency landing and four
wrong landings and Air
Air
India Charters which runs no-frill Air India Express as well as IndiGo had two
emergency landings and one wrong landing each, while GoAir had only one
emergency landing.
JetLite,
SpiceJet, Alliance Air and cargo carriers Blue Dart and Deccan Cargo did not
account for a single such incident, the figures showed.
Most
of the emergency landings or wrong landings were made by turboprop ATR-72
aircraft which accounted for 12 incidents, while Airbus A-320s accounted for
eight such incidents. Four incidents involved Boeing 737s, while A-319s and
A-321s recorded two each. (More) PTI ARC ZMN DEP 12041116
EIILM Workshop on battling
stress
KOLKATA:
In the wake of recession and the stress that it amounts to, the first year PGPM
students of Eastern Institute for Integrated Learning in Management (EIILM)
organised a workshop on how to survive under the hammer? Stress vs. Recession.
Prarrthana
Pal Chowdhury, corporate sales manager Eastern India, Spicejet Limited and
Kunal Chakraborty, head HRD, Metro Dairy were the panelists for the discussion,
and were present to elucidate on recession related stress and give the students
an overview on the industry they are employed in. When recession hit in 2008 it
wrecked major havoc but in
Prarrthana
spoke of a pragmatic approach to stress. According to her, one needs to have
self-confidence and accept what comes their way; recession or not, a job doesnt
come with a guarantee therefore one has to be prepared for unforeseen
circumstances and take it in their stride. Being stressed would only add to the
problem, she avered.
Kunal
Chakraborty had something different to offer. He said, Stress is not always
negative. It can bring out the best in individuals and this is called enstress.
He gave a short presentation on how to survive from recession related stress.
From
talking about the macroeconomic parameters that are affected due to recession,
the behavioral manifestation and organisational level strategies for managing
stress to employee level strategies and the kind of communication that has to
be there between the employer and the employee, Kunal Chakraborty answered all
questions students raised before him.
Students who attended the workshop had a lot to take back with them. We encourage students to organise workshops as frequently as possible. It gives them an insight into reality and they learn better, said professor Rajeshwari Deb, programme coordinator, PGPM.
Fog delays
Bangalore-Pune flight by 2 hrs
PUNE:
Low-cost carrier Spice-Jet's Bangalore-Pune flight was delayed by two hours after
it was diverted to Mumbai due to poor visibility conditions caused by fog at
the city's Lohegaon airport on Thursday morning.
The
flight SG-343, carrying 113 passengers, eventually returned to Pune from Mumbai
at 9.47 am, an airport official said. A SpiceJet spokesperson confirmed that
flight SG-342, which took off from
The
flight later left for Ahmedabad. No other SpiceJet flights, operating in and
out of Pune on Thursday morning, were affected, she added.
No
plan for bailout package to private airlines: Aviation Minister
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners, controlling
shareholders or senior officers as terrorist or terrorist organization or whom
notice had been received that all financial transactions involving their assets
have been blocked or convicted, found guilty or against whom a judgement or
order had been entered in a proceedings for violating money-laundering,
anti-corruption or bribery or international economic or anti-terrorism sanction
laws or whose assets were seized, blocked, frozen or ordered forfeited for
violation of money laundering or international anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper payments
to government officials for engaging in prohibited transactions or with
designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority for
any financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.55.19 |
|
|
1 |
Rs.87.65 |
|
Euro |
1 |
Rs.69.16 |
INFORMATION DETAILS
|
Report Prepared
by : |
BYI |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
4 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
4 |
|
--PROFITABILIRY |
1~10 |
3 |
|
--LIQUIDITY |
1~10 |
3 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
3 |
|
--CREDIT LINES |
1~10 |
2 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
31 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.