New Delhi: SpiceJet might be profitable, but the no-frills carrier's liabilities outstripped its assets at the end of September 2015.


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The airline Thursday reported a net profit of Rs 23.77 crore in the three months ended September on the back of a steep fall in fuel costs and other expenses. It had a net loss of Rs 310.45 crore in the year-ago period.


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However, SpiceJet's total income from operations declined over 28 percent to Rs 1,040.13 crore in July-September of the current fiscal.


"As on September 30, 2015, the company has accumulated losses of Rs 311,518.3 lakh against shareholders' funds (including advance towards subscription of securities) of Rs 199,660.7 lakh. As of this date, the company's total liabilities exceed its total assets by Rs 111,857.6 lakh," the airline said in a regulatory filing.


Historically, SpiceJet said its operating results have been materially affected by various factors, including high cost structure, significant depreciation in the value of the currency and certain other adverse market conditions.


"On account of its operational and financial position, the company had also delayed payments to various parties over the last two years. These factors have resulted in a material uncertainty that may cause significant doubt about the company's ability to continue as a going concern," the filing said.


Referring to the company's statement that its total liabilities exceed total assets by Rs 111,857.6 lakh as of September 2015, its auditor said these conditions, along with other matters, "indicate the existence of material uncertainty that may cast significant doubt about the company's ability to continue as a going concern".


The observation is part of the auditor S R Batliboi & Associates LLP's limited review report for the September quarter.


SpiceJet noted that it continues to negotiate with vendors for settlements, improved commercial terms and better credit facilities. Also, the airline is in the process of arranging additional working capital finance and trade financing to improve its short-term liquidity position.


"Having regard to recent operational profitability, the management believes it will be in a better position to raise funds," the filing said.


"The management is of the view that the company will be able to raise fund as necessary to achieve profitable operations and meet its liabilities as they fall due. Accordingly, these financial results have been prepared on the basis that the company will continue as a going concern for the foreseeable future," it noted.