IndiGo Q4 Results: Revenue Grows At Slowest Pace Since Listing; Airline Posts Loss

Interglobe Aviation Ltd.'s quarterly revenue rose at its slowest pace since listing as flight services were suspended in the last week of March amid the coronavirus outbreak.

Revenue rose 5.27% year-on-year to Rs 8,299 crore in the quarter ended March, the operator of India's largest airline, IndiGo, said in an exchange filing. Analyst estimates compiled by BloombergQuint had pegged the top line at Rs 7,540 crore.

The company reported a loss of Rs 873 crore during the reported quarter compared with a net profit of Rs 590 crore a year ago. That came on the back of a decline in passenger volumes as flights remained non-operational, along with lower airfares, higher fixed costs and rupee depreciation.

IndiGo Q4 Results FY20: Other Highlights

• The airline reported an operational loss of Rs 13 crore compared with an Ebitdar of Rs 2,056 crore in the same quarter last year.
• Ebitdar margin stood at -0.15% compared with 26.1% a year ago.
• A deferred tax credit of Rs 420 crore lowered net loss.
• Net loss before tax stood at Rs 1,293 crore against net profit before tax of Rs 617 crore.

Yields, too, rose at the slowest pace in six quarters. The metric to measure average fare per passenger per kilometre rose 1.1% to Rs 3.74.

Total cost increased 26%—the most since the airline operator's listing in 2015—even as fuel cost per available seat kilometre declined over last year.

The airline also suffered a foreign exchange loss of Rs 1,014 crore as the rupee depreciated 5.8% against the U.S. dollar during the quarter. Most of this, however, was mark-to-market forex loss on assumed lease liability.

To be sure, mark-to-market forex losses are notional and could be reversed if the rupee strengthens. The company has to recognise it in the books due to the implementation of new accounting standard IndAS-116.

Full-Year Performance

• Revenue stood at Rs 35,756 crore compared with Rs 28,497 crore a year ago.
• Net loss of Rs 248 crore versus a net profit of Rs 156 crore.
• The company increased its capacity by 19%, compared with the guided 23%. For the financial year ending March 2021, the airline has withdrawn its 20% forecast for capacity growth. That's because of operations remained shut for the most part of the ongoing quarter.

Total cash balance stood at Rs 20,377 crore, including Rs 8,928 crore free cash and Rs 11,449 crore restricted cash.

IndiGo added five aircraft during the quarter. Its fleet had 262 aircraft, comprising 123 A320 Ceos, 100 A320Neos, 14 A321Neos and 25 ATRs as of March 2020.

Shares of Interglobe Aviation were trading 0.83% lower after the results were announced. That compares with a 1.57% gain in the BSE Sensex.