InterGlobe Aviation

Q3 net profit zooms 168%

Jan 29, 2020 04:01 IST capital market

InterGlobe Aviation, the largest domestic airline by market share, posted 168% surge in net profit to Rs 495.97 crore on 25% rise in total income from operation to Rs 9,931.69 crore for the third quarter ended December 2019, thanks to increase in load factor and capacity growth, operating margin growth, and lower MTM loss on capitalized operating leases. Operating margin (OPM) increased to 16.9% from 2.7% corresponding previous quarter. Thus, operating profit (OP) zoomed 695% to 1,676.25 crore.

For Q3FY20, passenger ticket revenues increased 25.5% to Rs 10,330.2 crore and ancillary revenues jumped 28.8% to Rs 1,037.30 crore. Total expenses increased by 21.5% to Rs 9,736.90 crore. CASK excluding fuel was up 17.5% to Rs 2.40. Excluding the impact of foreign exchange, CASK excluding fuel increased by 9.3% for the quarter.

Commenting on the quarter performance, Mr. Ronojoy Dutta, Companys CEO, said We reported a profit before tax of INR 5.6 billion with a profit before tax margin of 5.6% compared to 2.3% profit before tax margin for the same quarter last year. We started operations in 7 new international routes and 17 new domestic routes and operated a peak of 1,634 daily departures during the quarter. I am very enthusiastic about the way we have been developing our network, connecting cities large and small to provide more choice to our customers. We have added small cities such as Shirdi and Shillong to our network while extending our reach to major cities such as Hanoi and Guangzhou. While expanding we have also been paying a lot of attention to our customer service levels and for the quarter, our on time performance was number one amongst the Indian carriers. We are really serious about our mission of building the best transportation network in the world for India

Key Highlights

Network and Fleet

As of 31st December 2019:

  • Fleet of 257 aircraft including 126 A320ceos, 96 A320neos, 10 A321neo and 25 ATRs; a net increase of 12 aircraft during the quarter.
  • Operated a peak of 1,634 daily flights including international operations during the quarter.
  • Service to 84 destinations including 23 international cities.

Operational Performance

  • For Q3FY20, the Company had on-time performance of 72.1% at four key metros, flight cancellation rate of 1.13%, and a Technical Dispatch Reliability of 99.8%.

 Quarterly Performance

The total income from operation inclined 25% to Rs 9,931.69 crore for the third quarter ended December 2019. For the quarter, passenger ticket revenues increased 25.5% to Rs 10,330.2 crore and ancillary revenues jumped 28.8% to Rs 1,037.30 crore. RASK was up 5.6% to Rs 3.91 and yield jumped by 1.2% to Rs 3.88 per KM.

Total expenses increased by 21.5% to Rs 9,736.90 crore. CASK excluding fuel was up 17.5% to Rs 2.40, driven by mark to market foreign exchange loss on capitalized operating leases, higher maintenance cost and higher employee costs. Excluding the impact of foreign exchange, CASK excluding fuel increased by 9.3% for the quarter.

Operating margin (OPM) increased to 16.9% from 2.7% corresponding previous quarter. Thus, operating profit (OP) zoomed 695% to 1,676.25 crore.

Other income gained 27% to Rs 398.48 crore. With 249% jump in interest cost to Rs 480.49 crore and 409% rise in depreciation cost to Rs 1,067.72 crore, the Company booked 205% growth in PBT to Rs 556.53 crore. With Rs 60.56 crore taxation outgo during the quarter as compared tax credit of Rs 2.76 crore in corresponding previous quarter, the net profit for the quarter zoomed 168% to Rs 495.97 crore.

Nine Months ended December performance

For Nine Months ended December 2019, total income from operation inclined 33% to Rs 27,456.94 crore. OPM rose to 15.3% from -3.9% corresponding previous period. The turnaround of operating margin to positive led Operating Profit (OP) of Rs 4,189.65 crore from Operating loss (OL) of Rs 804.17 crore corresponding previous period.

Other income inclined 27% to Rs 1,199.95 crore. With 269% rise in interest cost to Rs 1,388.12 crore and 448% jump in depreciation cost to Rs 2,967.37 crore, the Profit Before Tax (PBT), as a result, was Rs 1,034.10 crore as compared LBT of Rs 773.45 crore corresponding previous period. The tax outgo for the period was Rs 396.98 crore as compared tax credit of Rs 334.86 crore in corresponding previous period. Thus, the company booked net profit of Rs 637.13 crore as compared to net loss of Rs 438.59 crore in corresponding previous period.

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 31st December 2019, IndiGo had a total cash balance of Rs 20,068.70 crore comprising of Rs 9,412.80 crore of free cash and Rs 10,655.90 crore of restricted cash.
  • The capitalized lease liability as of 31st December 2019 was Rs 19,204.60 crore. The total debt (including the capitalized lease liability) was Rs 21,555.30 crore.

Future Capacity Growth

  • Year over year capacity increase in ASKs is expected to be 20% for the fourth quarter and 23% for the full fiscal year 2020.
  • For Fiscal Year 2021, capacity increase in ASKs is expected to be around 20%.

Awards and Accolades

  • Ranked as one of the best airlines for the third consecutive year amongst the top 20 mega airlines globally in terms of on-time performance based on the data compiled by OAG. IndiGo is the only Indian carrier to have made it to this list.
  • Awarded the Companies with Great Managers Award by People Business in partnership with The Economic Times.
  • Awarded Safety Partner - Best Aircraft Turn Around Activity by DIAL.

The scrip hovers around Rs 1,492.85 (27 January 2020) on the BSE.

InterGlobe Aviation: Consolidated Results?

 

1912 (3) 1812 (3) Var % 1912 (9) 1812 (9) Var % 1903 (12) 1803 (12) Var %
Income from Operations 9931.69 7916.22 25 27456.94 20613.51 33 28496.77 23020.89 24
OPM (%) 16.9 2.7 15.3 -3.9 -0.7 12.8
Operating Profit/Loss 1676.25 210.86 695 4189.65 -804.17 LP -203.43 2956.51 -107
Other income 398.48 313.04 27 1199.95 948.17 27 1324.60 946.86 40
PBIDT/LBIDT 2074.74 523.91 296 5389.60 144.00 999 1121.17 3903.37 -71
Interest 480.49 137.68 249 1388.12 376.38 269 508.96 339.82 50
PBDT 1594.25 386.23 313 4001.47 -232.39 LP 612.20 3563.55 -83
Depreciation 1037.72 203.83 409 2967.37 541.06 448 759.58 436.88 74
PBT/LBT 556.53 182.41 205 1034.10 -773.45 LP -147.38 3126.68 -105
Taxation 60.56 -2.76 396.98 -334.86 -304.63 884.30 -134
Net Profit/Loss 495.97 185.17 168 637.13 -438.59 LP 157.25 2242.37 -93
EPS (Rs)* # # # # 4.1 58.3
* EPS is on current equity capital of Rs 384.796 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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