November 14, 2018 2:18:00 am
Jet Airways shares on Tuesday spurted by 5.21 per cent to Rs 254.65 on the BSE following reports that Tata group is carrying out due diligence to acquire the airline. However, the airline said the acquisition reports are “speculative” in nature. In a stock exchange filing on Tuesday, Jet Airways said, “the subject news is speculative in nature and that there is no discussion or decision in the board which would require a disclosure.” Separately, its deputy chief executive and chief financial officer, Amit Aggarwal, in the post-earnings analysts call on Tuesday also termed the reports speculative and said that unless something gets materialised, the company will not comment.
“We can’t comment on speculations. We have very clearly stated time and again that once something materialises, we will talk it through. Otherwise, we are not commenting on any speculation,” he said.
There were reports in a section of the media that the Tata group was conducting due diligence of Jet Airways to buy the full-service carrier. On Monday, hit by higher fuel costs and the rupee depreciation, Jet Airways posted its third straight standalone loss of Rs 1,291 crore for the three months ended September 2018 against a profit of Rs 46.01 crore in the same period a year ago. It had reported a loss of Rs 1,319 crore in the June quarter.
The airline said it has a negative networth as of September 2018 and its current liabilities exceed current assets. Total current and non-current liabilities were to the tune of Rs 23,189 crore with current liabilities amounting to Rs 15,997 crore.
The airline reported a 58.6 per cent jump in its fuel expenses at Rs 2,419.76 crore during the quarter. “The airline continues to engage with financial stakeholders for supporting its funding requirements till it starts generating operational surplus and is actively working on the monetisation of its assets and capital infusion,” Jet Airways said.
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