By CL Jose
Posts operating loss of Rs90 cr for H1, FY22?
KANNUR/April 05-2022: The Kannur International Airport Ltd (KIAL), where both UDF as well as LDF have staked thier claim for its execution, has likely closed the financial year 2020-21 (FY21) with yet another loss of about Rs250 crore.
However, the official announcement of the FY21 financial results is still awaited. The recently released Economic Review has also indicated that the airport company has reported an Operating Loss of Rs90 crore for the six months ended September 30, 2021 (H1 FY22).
KIAL already carries accumulated losses to the tune of Rs139.64 crore in its books as of March end, 2020, causing a write-down of its capital to that extent. Against a paid-up share capital of Rs1338.12 crore, KIAL’s net worth as of FY20 was Rs1200 crore, which is incidentally equal to that of Cochin International Airport Ltd (CIAL) as of March 31, 2021..
Once the financial results of FY21 and FY22 are taken into account, the company is likely to see a substantial erosion in its capital base further. Already, the repayment of its borrowings, at about Rs900 crore, has witnessed slippages and this has led to the restructuring of KIAL’s loans.
The shareholders of KIAL may have to wait a bit longer than those at its Cochin counterpart to see their much-trumpeted airport venture break even.
Though the airport commenced commercial operations towards the close of 2018, odds seem to have been working against it for reasons quite intelligible, as the long-drawn Covid era has soon followed the company’s teething phase, giving KIAL no chance to produce a healthy financial performance ever since its take-off in December 2018.
FY21 loss
KIAL that reported a loss of Rs95.04 crore for the financial year 2019-20 (FY20) against a ‘quite predictable’ loss of Rs46.96 crore during its maiden year in operation, has reported an operating loss to the tune of Rs187.27 crore for 2020-21 (FY21), as inferred from the recently released Economic Review numbers.
Though KIAL is yet to announce the financials for FY21, the net loss for the said period could be nothing less than Rs250 crore as the ‘finance cost’ alone could work out close to Rs90 crore as it sits on a borrowing of about Rs900 crore plust interest accrued.
Again, coming to the just-concluded financial year 2021-22 (FY22), the recently released Economic Review has hinted that the company has incurred an operating loss of about Rs90 crore for the six months ended September 30, 2021 (H1 FY22) as the company generated a revenue of Rs27.49 crore and incurred an expenditure of Rs116.63 crore in the said 6-month period.
Shareholding
Kerala Government holds 5.25 crore shares, which account for 39.23 per cent of the company as of March 31, 2020. Indian PSUs, banks, companies, coop banks together hold 4.31 crore shares as of March 31, 2020, which account for 32.18 per cent.
It was following an additional issue of shares through private placement, Kerala Government’s holding in the company increased to 39.23 per cent as on March 31, 2020, from the earlier 30.16 per cent.
