Login 
Learn & Earn 
Home
Summary
KIAL, which is yet to taste profit since the commencement of its commercial operations towards the end of 2018, has reported a net loss of Rs126.27 crore for 2022-23 (FY23)compared with Rs124.30 crore loss for the previous year
KOCHI: Even as fingers are pointed against the Centre for the strained financial condition of Kannur International Airport Ltd (KIAL), the company’s net worth is likely to fall below half its paid-up share capital if the company repeats its loss history in the current financial year too.
Talking to myfinpoint recently, the former chief executive officer (CEO) and MD of KIAL, V Tulasidas, accused the Central Government’s intransigent stand not allowing foreign airlines to operate from the airport as the key reason for KIAL’s current sorry state of finance.
KIAL, which is yet to taste profit since the commencement of its commercial operations towards the end of 2018, has reported a net loss of Rs126.27 crore for 2022-23 (FY23)compared with Rs124.30 crore loss for the previous year.
KIAL’s financial position has deteriorated over the years with the accumulated losses reaching Rs574.21 crore against its share capital valued at Rs1338.39 crore.
The continuous loss-making trail has pulled its net worth down to Rs765.70 crore as of March 31, 2023, meaning that in the event of the company logging a loss of Rs96.5 crore or more in the current financial year, KIAL’s net worth could fall below half of its share capital at Rs1338.39 crore, which is generally viewed very seriously by financial analysts.
Interestingly, the user development fee (UDF) amounting to Rs52.95 crore has contributed to the extent of 58.90 per cent of the airport’s total aero revenue in 2022-23 which was at Rs89.90 crore.
Debt burden
KIAL is said to be wilting under the weight of its debt burden in the absence of a commensurate operating revenue. The largest expense during the financial year 2022-23 (FY23) was on account of the finance charge or interest expense, which stood at Rs105.13 crore against a total revenue of Rs112.66 crore logged by the company, taking the total expense of KIAL up to Rs257.48 crore during FY23.
Total borrowings of the company increased from Rs1035.97 crore to Rs1096.57 crore duing FY23 with the long-term loans alone amounting to Rs1085.5 crore.
Canara Bank’s loans to KIAL at Rs851.89 crore accounted for the lion’s share of the company’s loans, at 78 per cent as of end FY23. Total assets of KIAL fell from Rs2023.27 crore in FY22 to Rs1988.77 crore as of end FY23.
