InterGlobe Aviation?

Posts Q2 loss of Rs 1,194.83 crore ?

Oct 31, 2020 02:10 IST capital market

InterGlobe Aviation, the largest domestic airline by market share, posted net loss of Rs 1,194.83 crore on 66% drop in total income from operation to Rs 2,740.96 crore for the second quarter ended September 2020. Operating margin (OPM) was turnaround to 7.5% from a negative 0.2% corresponding previous quarter. Thus, the company registered profit (OP) of Rs 206.01 crore.  

For Q2FY21, passenger ticket revenues were Rs 2,208.20 crore, a decrease of 69% and ancillary revenues were Rs 506.60 crore, a reduction of 45.5% compared to the same period last year. Total expenses decreased by 56% to Rs 4,224.10 crore. CASK excluding fuel was up 50.7% to Rs 3.85.  

Commenting on the quarter performance, Mr. Ronojoy Dutta, Companys CEO, said We are pleased that we are slowly but surely stair-stepping our way back to normal capacity. While we are very much focused on managing the crisis of the present, we are also reimagining the promise of the future. Once we are back at 100 percent capacity, we will have lower unit costs, a stronger product, a more efficient fleet and a robust network. We are impatient for the arrival of the future.

Key Highlights 

Network and Fleet

As of 30th September 2020:  

  • Fleet of 282 aircraft including 117 A320 CEOs, 116 A320 NEOs, 24 A321 NEOs and 25 ATRs; a net increase of 8 aircraft during the quarter. 
  • Operated a peak of 823 daily flights including international operations during the quarter. 
  • Service to 59 domestic destinations and 5 international destinations through Air bubbles.

Operational Performance  

  • For Q4FY20, the Company had on-time performance of 98.1% at four key metros, flight cancellation rate of 1.43%, and a Technical Dispatch Reliability of 99.91%.

Quarterly Performance  

The total income from operation declined 66% to Rs 2,740.96 crore for the second quarter ended September 2020. For the quarter, passenger ticket revenues were Rs 2,208.20 crore, a decrease of 69% and ancillary revenues were Rs 506.60 crore, a reduction of 45.5% compared to the same period last year. RASK was down 5.4% to Rs 3.24 while yield jumped by 8.9% to Rs 3.83 per KM. 

Total expenses decreased by 56% to Rs 4,224.10 crore. CASK excluding fuel was up 50.7% to Rs 3.85.  

Operating margin (OPM) was turnaround to positive 7.5% from negative 0.2% corresponding previous quarter. Thus, the company posted an operating profit (OP) of Rs 206.01 crore as against operating loss (OL) of Rs 14.22 crore in corresponding previous quarter. 

Other income fell 34% to Rs 288.24 crore. With 33% jump in interest cost to Rs 562.52 crore and 10% rise in depreciation cost to Rs 1,126.58 crore, the Company booked Loss before tax (LBT) of Rs 1,194.85 crore as compared to LBT of Rs 1,031 crore corresponding previous quarter.  

With net tax credit of Rs 0.02 crore during the quarter as compared tax outgo of Rs 30.15 crore in corresponding previous quarter, the company booked net loss of Rs 1,194.83 crore, a rise of 13% from a net loss of Rs 1,061.99 crore in corresponding previous quarter. 

Half yearly performance 

For half year ended September 2020, total income from operation declined 80% to Rs 3,507.70 crore. OPM was turnaround to negative 40.1% from positive 14.3% corresponding previous period. Thus, the company posted an operating loss (OL) of Rs 1,407.34 crore as against operating profit (OP) of Rs 2,513.40 crore in corresponding previous period. 

Other income fell 17% to Rs 665.32 crore. With 18% jump in interest cost to Rs 1,072.27 crore and 15% rise in depreciation cost to Rs 2,223.14 crore, the Company booked LBT of Rs 4,037.43 crore as compared to PBT of Rs 477.57 crore corresponding previous period.  

With net tax outgo of Rs 1.70 crore during the period as compared tax outgo of Rs 336.42 crore in corresponding previous period, the company booked net loss of Rs 4,039.12 crore, a turnaround from net profit of Rs 141.16 crore in corresponding previous period.

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 30th September 2020

  • IndiGo had a total cash balance of Rs 17,931.80 crore comprising of Rs 6,973.40 crore of free cash and Rs 10,958.40 crore of restricted cash.
  • The capitalized operating lease liability was Rs 22,931.90 crore. The total debt (including the capitalized operating lease liability) was Rs 25,419.40 crore.

Future Capacity Growth

  • Third quarter fiscal 2021 capacity in ASKs is expected to be around 60% of third quarter fiscal 2020 capacity.

Awards and Accolades 

  • IndiGo has been ranked #1 by the Safe Travel Barometer with a rating of 4.2 out of 5 as the safest airline in India.
  • IndiGo ranks 33rd among Indias Top 100 brands, a phenomenal improvement of 52 positions from last year.
  • IndiGo was listed among BrandZ Top 75 Most Valuable Indian Brands 2020 by Kantar IMRB.
  • IndiGoReach, the CSR arm of IndiGo, bags the 7th edition of eNabling North East Award 2019 for its ongoing project, Livelihood Improvement of Tribal Communities in Guwahati.
  • IndiGo and Genesis BCW won Gold award, for the Best use of PR, for their campaign Flying High Despite Cockpit Battle at the ET Shark Awards 2020
  • IndiGo and Wieden & Kennedy, Delhi, won a Bronze award, for the Best Consumer Insight Campaign, IndiGo Abroad at the ET Shark Awards 2020.

The scrip hovers around Rs 1,330.90 (29 October 2020) on the BSE.

InterGlobe Aviation: Consolidated Results

 

2009 (3) 1909 (3) Var % 2009 (6) 1909 (6) Var % 2003 (12) 1903 (12) Var %
Income from Operations 2740.96 8105.19 -66 3507.70 17525.26 -80 35756.00 28496.77 25
OPM (%) 7.5 -0.2 -40.1 14.3 11.4 -0.7
Operating Profit/Loss 206.01 -14.22 LP -1407.34 2513.40 PL 4058.62 -203.43 LP
Other income 288.24 434.58 -34 665.32 801.46 -17 1535.51 1324.60 16
PBIDT/LBIDT 494.25 420.37 18 -742.03 3314.86 999 5594.13 1121.17 399
Interest 562.52 423.46 33 1072.27 907.64 18 1875.87 508.96 269
PBDT -68.27 -3.10 999 -1814.29 2407.22 PL 3718.26 612.20 507
Depreciation 1126.58 1028.74 10 2223.14 1929.65 15 3973.93 759.58 423
PBT/LBT -1194.85 -1031.83 16 -4037.43 477.57 PL -255.67 -147.38 73
Taxation -0.02 30.15 1.70 336.42 -21.99 -304.63 -93
Net Profit/Loss -1194.83 -1061.99 13 -4039.12 141.16 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

Powered by Capital Market - Live News

Related Story