InterGlobe Aviation

Q1 net profit zooms 43 times

Jul 22, 2019 05:07 IST capital market

InterGlobe Aviation, the largest domestic airline by market share, net profit zoomed 43 times to Rs 1,203.14 crore on the back of 45% rise in total income from operation to Rs 9,420.06 crore for the first quarter ended June 2019. The stellar performance was largely due to strong passenger revenues along with a sharp improvement in cargo performance. Operating margin (OPM) increased to 26.8% from -0.2% corresponding previous quarter. Thus, Operating profit (OP) inclined to Rs 2,527.61 crore from operating loss of Rs 11.07 crore corresponding previous quarter.

For Q1FY20, passenger ticket revenues were Rs 8445.10 crore, an increase of 46.4% and ancillary revenues were Rs 902.60 crore, an increase of 32.2% compared to the same period last year. Total expenses for the Q1FY20 were Rs 8277.50 crore, an increase of 22% over the same quarter last year. CASK excluding fuel was Rs 2.11, a decrease of 2.8% over the same quarter last year. Excluding the impact of foreign exchange, CASK excluding fuel increased by 2.6% for the quarter.

Commenting on the quarter performance, Mr. Ronojoy Dutta, Companys CEO, said I am pleased to report our highest ever quarterly profit after tax of Rs 12 billion. Strong passenger revenues along with a sharp improvement in cargo performance were key drivers to this improved profitability. We are particularly pleased with this quarter because it demonstrated our ability to grow rapidly while simultaneously expanding our margin performance. I am also proud that our Company has been awarded Best Low Cost Airline in Central Asia and India by Skytrax for the tenth time in a row. I wish to thank all our employees for the high levels of performance that we are witnessing across the company. Mr. Dutta further added, We believe that a clear eyed awareness of our mission will ensure that the goals of the company are in complete synchronization with the goals of our country.

Key Highlights

Network and Fleet

As of 30th June 2019:

  • Fleet of 235 aircraft including 129 A320ceos, 83 A320neos, 5 A321neo and 18 ATRs; a net increase of 18 aircraft during the quarter.
  • Operated a peak of 1,437 daily flights including international operations during the quarter.
  • Service to 70 destinations including 17 international cities; added 1 international and 1 domestic destination during the quarter.

Operational Performance

  • For Q1FY20, the Company had a Technical Dispatch Reliability of 99.87%, on-time performance of 86.6% at four key metros and flight cancellation rate of 0.39%.

Quarterly Performance

The total income from operation inclined 45% to Rs 9,420.06 crore for the first quarter ended June 2019. For the quarter, passenger ticket revenues were Rs 8445.10 crore, an increase of 46.4% and ancillary revenues were Rs 902.60 crore, an increase of 32.2% compared to the same period last year. The stellar performance was largely due to strong passenger revenues along with a sharp improvement in cargo performance.

Total expenses for the Q1FY20 were Rs 8277.50 crore, an increase of 22% over the same quarter last year. CASK excluding fuel was Rs 2.11, a decrease of 2.8% over the same quarter last year. Excluding the impact of foreign exchange, CASK excluding fuel increased by 2.6% for the quarter.

Operating margin (OPM) increased to 26.8% from -0.2% corresponding previous quarter. As percentage to sales and net of stock adjustments, aircraft & engine lease rentals cost fell to 1.4% from 12.5% corresponding previous quarter, meanwhile, aircraft fuel expenses decreased 850 bps to 33.4%%, supplementary rentals and aircraft repair and maintenance cost fell 230 bps to10.9%, airport fees and charges cost shed 150 bps to 7.2%, and other expenses fell 120 bps to 8.8%. Thus, OP inclined 564% to Rs 591.36 crore. Thus, Operating profit (OP) inclined to Rs 2,527.61 crore from operating loss of Rs 11.07 crore corresponding previous quarter.

Other income gained 20% to Rs 366.88 crore. With 345% jump in interest cost to Rs 484.18 crore and 480% rise in depreciation cost to Rs 900.91 crore, the Profit Before Tax (PBT), as a result, grew to Rs 1509.41 crore from Rs 31.34 crore corresponding previous quarter. With Rs 306.26 crore taxation outgo during the quarter as compared tax outflow of Rs 3.55 crore in corresponding previous quarter, net profit zoomed to Rs 1203.14 crore from Rs 27.79 crore in corresponding previous quarter.

Annual Financial Performance

For the financial year ended March 2019 (FY 2019), total income from operation inclined 24% to Rs 28,496.77 crore. OPM turned to -0.7% from 12.8% corresponding previous period. The turnaround of operating margin to negative led Operating Loss (OL) of Rs 203.43 crore from Operating profit (OP) of Rs 2,956.51 crore in corresponding previous period.

Other income inclined 40% to Rs 1,324.60 crore. With 50% rise in interest cost to Rs 508.96 crore and 74% jump in depreciation cost to Rs 759.58 crore, the Loss Before Tax (LBT), as a result, was Rs 147.38 crore as compared PBT of Rs 3,126.68 crore in corresponding previous period. The tax credit for the period was Rs 304.63 crore as against tax outflow of Rs 884.30 crore in corresponding previous period. Thus, the company booked net profit of Rs 157.25 crore, down by 93% from net profit of Rs 2,242.37 crore in corresponding previous year.

Cash and Debt

  • As of 30th June 2019, IndiGo had a total cash balance of Rs 17337.10 crore comprising of Rs 7696.80 crore of free cash and Rs 9640.20 crore of restricted cash.
  • With effect from 1st April 2019, the Company has capitalized its operating leases in accordance with Ind AS 116. The capitalized lease liability as of 30th June, 2019 was Rs 16070.10 crore. The total debt (including the capitalized lease liability) was Rs 18430.90 crore.

Future Capacity Growth

  • Second quarter fiscal 2020 year over year capacity increase in ASKs is expected to be 28%
  • Full year fiscal 2020 year over year capacity increase in ASKs is expected to be 30%

Awards and Accolades

  • IndiGo was awarded the Best Low Cost Airline in Central Asia and India for the tenth consecutive time at the Skytrax World Airline Awards 2019.

The scrip hovers around Rs 1463.35 (19 July 2019) on the BSE.

InterGlobe Aviation: Standalone Results

 

1906 (3) 1806 (3) Var % 1903 (12) 1803 (12) Var %
Income from Operations 9420.06 6511.97 45 28496.77 23020.89 24
OPM (%) 26.8 -0.2 -0.7 12.8
Operating Profit/Loss 2527.61 -11.07 LP -203.43 2956.51 -107
Other income 366.88 306.36 20 1324.60 946.86 40
PBIDT/LBIDT 2894.49 295.29 880 1121.17 3903.37 -71
Interest 484.18 108.68 345 508.96 339.82 50
PBDT 2410.32 186.60 999 612.20 3563.55 -83
Depreciation 900.91 155.27 480 759.58 436.88 74
PBT/LBT 1509.41 31.34 999 -147.38 3126.68 -105
Taxation 306.26 3.55 999 -304.63 884.30 -134
Net Profit/Loss 1203.14 27.79 4230 157.25 2242.37 -93
EPS (Rs)* # # 4.1 58.3
* EPS is on current equity capital of Rs 384.407 crore Face value of Rs 10
# EPS Not Calculated As It Is A Seasonal Business
Var % exceeding 999 is truncated to 999
LP: Loss to Profit PL: Profit to Loss
EPS is calculated after excluding EO and relevant tax
Figures in Rs crore
Source: Capitaline Corporate Databases

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