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Top 5 Companies With Negative Net Worth

By Saikat Mitra | 6/28/2013 9:00 PM Friday

A couple of weeks ago, we had looked at the top 5 companies with the highest net worth. Of course, there is a flip side to this too. A company’s net worth runs into negatives if its accumulated losses exceed the shareholders’ equity, if it is debt-ridden to the extent that its liabilities exceed its assets, or when the value of its assets depletes massively. This implies a weak financial position that can be turned around only by consistent profits over the coming years.

The following is a list of 5 companies with the highest negative net worth as of March 31, 2013.

Company NameNet Worth As Of FY13 (Rs/Cr)YTD Return (%)
Kingfisher Airlines -5,635.50 -261.25
Tata Teleservices (Maharashtra) -1,133.98 -90.24
Southern Petrochemicals Industries -1,044.91 -57.89
Jet Airways (India) -539.45 -32.01
LML -478.91 -38.6
Source: Dion Insight

Kingfisher Airlines: It would come as no surprise to see the troubled Kingfisher Airlines (KFA) topping our list of companies with negative net worth. KFA has been reporting losses consistently over the past 9 years. It has a huge debt pile-up of around Rs 8000 crore on its books, which is a matter of serious concern.

As of March 31, 2013, the company had a negative net worth of Rs 5635 crore. In this calendar year, the scrip has depreciated by a humongous 261.25%.

Tata Teleservices (Maharashtra): Tata Teleservices Maharashtra (TTML) spearheads the Tata group's presence in the telecom circles of Maharashtra (including Mumbai) and Goa. The company also has a significant pull in the GSM space through a joint venture with NTT DOCOMO of Japan in November 2008, and offers differentiated products and services in Mumbai, Maharashtra and Goa under the brand name Tata DOCOMO.

At present, the company has a negative net worth of Rs 1133.98 crore and the stock price has depreciated by 90.24% on a YTD basis.

Southern Petrochemicals Industries: Southern Petrochemical Industries Corporation was incorporated in 1969 and is headquartered in Chennai. It engages in the manufacture and sale of fertilisers primarily in India.
The company offers urea, a nitrogenous chemical fertiliser that is used in the processing of cotton and textile mills, as cattle feed and is also a raw material for chemical products, dyes, and pharmaceuticals. It provides tissue culture plants and hybrid seeds. It also operates a semiconductor assembly and test facility, which offers integrated circuits packing solutions.

For FY13, the company’s net worth is in the red at Rs 1044.91 crore. The stock has a negative return of 57.89%.

Jet Airways (India): Jet Airways (India) was founded in 1993 and is based in Mumbai. The company provides
passenger and cargo air transportation services and also leases aircrafts. It operates flights to 76 destinations in India and internationally. As of June 20, 2012, Jet operated a fleet of 103 aircrafts comprising 10 Boeing 777-300 ER aircrafts, 12 Airbus A330-200 aircrafts, 61 next generation Boeing 737-700/800/900 aircrafts, and 20 modern ATR 72-500 turboprop aircrafts.

This is the second company from the aviation sector that has featured in this list, and has a negative net worth of Rs 539 crore. The scrip has fallen by 32.01% on a YTD basis.

LML: LML Ltd. was incorporated in 1972 and is based in Kanpur. It engages in the manufacture and sale of motorised two-wheelers in India and offers mopeds, motorcycles, and scooters. The company also exports its products to regions like the United States, the European Union, Africa, Latin America and Asia.

For FY13, the company’s net worth stands in the red, down by Rs 478 crore. Its stock has yielded a negative return of 38.60%.

 

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