InterGlobe Aviation

Posts Q4 loss of Rs 870.81 crore as costs rise, COVID-19 pandemic hits

Jun 02, 2020 11:06 IST capital market

InterGlobe Aviation, the largest domestic airline by market share, posted net loss of Rs 870.81 crore despite 5% jump in total income from operation to Rs 8,299.06 crore for the fourth quarter ended March 2020, as closure of flight operations during national lockdown on account of COVID-19 significantly impacted operating performance. The airline posted a net profit of Rs 595.83 crore in the corresponding quarter last year. 

Operating margin (OPM) was turnaround to negative 1.6% from 7.6% corresponding previous quarter. Thus, the company suffered operating loss (OL) of Rs 131.03 crore as compared to operating profit (OP) of Rs 600.74 crore in corresponding previous quarter. 

For Q4FY20, passenger ticket revenues increased 1.3% to Rs 7,130.90 crore and ancillary revenues jumped 30.2% to Rs 1,075.70 crore. Total expenses increased by 30% to Rs 9,924.40 crore. CASK excluding fuel was up 42.1% to Rs 2.97. Excluding foreign exchange loss due to weakening of rupee, primarily comprising of mark to market loss on capitalized operating lease, CASK ex fuel has increased by 20% for the quarter on a YoY basis. 

Commenting on the quarter performance, Mr. Ronojoy Dutta, Companys CEO, said In the midst of every crisis, lies great opportunity. At IndiGo we are determined to emerge from this crisis stronger and more energized than ever. We are positioning ourselves to be a stronger brand,to have a more efficient fleet and a lower cost structure. We fully intend to deliver for India, the best air transportation system in the world.

 Key Highlights 

Network and Fleet

As of 31st March 2020:  

  • Fleet of 262 aircraft including 123 A320ceos, 100 A320neos, 14 A321 neo and 25 ATRs; a net increase of 5 aircraft during the quarter. 
  • Operated a peak of 1,674 daily flights including international operations during the quarter. 
  • Service to 86 destinations including 24 international cities; added 1 international and 1 domestic destination during the quarter 

Operational Performance  

  • For Q4FY20, the Company had on-time performance of 80.8% at four key metros, flight cancellation rate of 1.96%, and a Technical Dispatch Reliability of 99.86%.

Quarterly Performance  

The total income from operation inclined 5% to Rs 8,299.06 crore for the fourth quarter ended March 2020. For the quarter, passenger ticket revenues increased 1.3% to Rs 7,130.90 crore and ancillary revenues jumped 30.2% to Rs 1,075.70 crore. RASK was up 0.5% to Rs 3.65 and yield jumped by 1% to Rs 3.74 per KM. 

Total expenses increased by 30% to Rs 9,924.40 crore. CASK excluding fuel was up 42.1% to Rs 2.97. Excluding foreign exchange loss due to weakening of rupee, primarily comprising of mark to market loss on capitalized operating lease, CASK ex fuel has increased by 20% for the quarter on a YoY basis. 

Operating margin (OPM) was turnaround to negative 1.6% from 7.6% corresponding previous quarter. Thus, the company suffered operating loss (OL) of Rs 131.03 crore as compared to operating profit (OP) of Rs 600.74 crore in corresponding previous quarter. 

Other income fell 11% to Rs 335.56 crore. With 268% jump in interest cost to Rs 487.75 crore and 361% rise in depreciation cost to Rs 1,006.56 crore, the Company booked Loss before tax (LBT) of Rs 1,289.77 crore as compared to PBT of Rs 626.07 crore.  

With net tax credit of Rs 418.97 crore during the quarter as compared tax outgo of Rs 30.24 crore in corresponding previous quarter, the company booked net loss of Rs 870.81 crore, a turnaround from net profit of Rs 595.83 crore in corresponding previous quarter. 

Annual Financial Performance 

For the financial year ended March 2020 (FY 2020), total income from operation inclined 25% to Rs 35,756.00 crore. OPM rose to 11.4% from negative -0.7% corresponding previous period. The turnaround of operating margin to positive led Operating Profit (OP) of Rs 4,058.62 crore from Operating loss (OL) of Rs 203.43 crore corresponding previous period. 

Other income inclined 16% to Rs 1,535.51 crore. With 269% rise in interest cost to Rs 1,875.87 crore and 423% jump in depreciation cost to Rs 3,973.93 crore, the company booked Loss Before Tax (LBT) of Rs 255.67 crore as compared LBT of Rs 147.38 crore corresponding previous period. The net tax credit for the period was Rs 21.99 crore as compared tax credit of Rs 304.63 crore in corresponding previous period. Thus, the company booked net loss of Rs 233.68 crore as compared to net profit of Rs 157.25 crore in corresponding previous period. 

Cash and Debt 

  • As of 31st March 2020, IndiGo had a total cash balance of Rs 20,376.90 crore comprising of Rs 8,928.10 crore of free cash and Rs 11,448.80 crore of restricted cash.  
  • The capitalized lease liability as of 31st March 2020 was Rs 20,284.90 crore. The total debt (including the capitalized lease liability) was Rs 22,719.20 crore. 

Future Capacity Growth 

  • With the prevailing uncertainty due to pandemic, the company is not in a position to provide this guidance. 

Awards and Accolades 

  • IndiGo was recognized as one of the top 50 most valuable and strongest airlines as per the Brand Finance Airlines 50 report for 2020. 
  • lndiGo was felicitated with two Trophies and Certificates as Safety Champion in Hazard Reporting for the Year 2019 by DIAL during 58th Airside Safety Committee Meeting

The scrip hovers around Rs 945.55 (02 June 2020) on the BSE.

InterGlobe Aviation: Consolidated Results

 

2003 (3) 1903 (3) Var % 2003 (12) 1903 (12) Var %
Income from Operations 8299.06 7883.27 5 35756.00 28496.77 25
OPM (%) -1.6 7.6 11.4 -0.7
Operating Profit/Loss -131.03 600.74 PL 4058.62 -203.43 LP
Other income 335.56 376.43 -11 1535.51 1324.60 16
PBIDT/LBIDT 204.54 977.17 -79 5594.13 1121.17 399
Interest 487.75 132.58 268 1875.87 508.96 269
PBDT -283.21 844.59 PL 3718.26 612.20 507
Depreciation 1006.56 218.52 361 3973.93 759.58 423
PBT/LBT -1289.77 626.07 PL -255.67 -147.38 73
Taxation -418.97 30.24 -21.99 -304.63 -93
Net Profit/Loss -870.81 595.83 PL -233.68 157.25 PL
EPS (Rs)* # # -6.1 4.1
* 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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