Highlights of the Concall

• The Company 97% drop in net profit to Rs 27.79 crore despite of 13% growth in total income from operation to Rs 6,511.97 crore for the first quarter ended June 2018, hurt by adverse impact of foreign exchange, high fuel prices and the competitive fare environment, continued pressure on yields and increase in our maintenance costs. Aircraft fuel expenses rose 54% to Rs 2,715.65 crore. Operating margin (OPM) reduced to -0.2% from 19.1% corresponding previous quarter. Thus, drop in OPM leads to Operating Loss (OL) of Rs 11.07 crore from Operating profit (OP) of Rs 1097.02 crore corresponding previous quarter.

• The Company profits were lower compared to the same period last year primarily because of four factors. First – Foreign Exchange - The Indian rupee depreciated significantly during the quarter and closed at 68.44 rupees per U.S. Dollar. Based on this, the Company booked a foreign exchange loss of Rs 2.5 billion compared to a gain of Rs 66 million during the same period last year. Second –fuel prices were higher in the quarter compared to the same period last year. After adjusting for the increased volumes, this increase in fuel price resulted in higher fuel costs of Rs 5.6 billion compared to the same period last year. Third – the Company continued to see a competitive fare environment in the industry and despite the increase in fuel prices, while the Company load factors were up, the Company yields were down year over year. The impact of these lower yields on the Company profits was Rs 3.3 billion. Fourth – the Company had an increased number of shop visits this quarter on the engines pertaining to our older A320ceo aircraft.

• For Q1FY19, passenger ticket revenues were Rs 5769.40 crore, an increase of 13.6% and ancillary revenues were Rs 682.70 crore, an increase of 16% compared to the same period last year. Total expenses for the quarter ended June 2018 were Rs 6787 crore, an increase of 40.5% over the same quarter last year. The Company fuel prices rose 27% which led to an overall increase in CASK of 19.8%. The Company CASK for the quarter was Rs 3.69 compared to Rs 3.08 during the same period last year. CASK excluding fuel was Rs 2.17, an increase of 13.3% over the same quarter last year. CASK excluding fuel was majorly impacted by the adverse movement in foreign exchange in the quarter.

• For Q1FY19, the Company total capacity was 17.8 billion ASKs, an increase of 18.4% compared to the same period last year. RASK was 3.70 rupees compared to Rs 3.82 during the same quarter last year, a decline of 3.1%. This decline in RASK was primarily driven by lower yields, partially offset by higher load factors. The Company yields were down by 5.4% to Rs 3.62, while load factors were up by 1.3 points to 89.3%.

• As of 30th June 2018, the Company has fleet of 169 aircraft including 124 A320ceos, 36 A320neos and 9 ATRs; a net increase of 10 aircraft during the quarter including 3 ATRs and 4 A320neos. The Company operated a peak of 1,157 daily flights including international operations during the quarter. The Company service to 52 destinations including 8 international cities; added 2 domestic destinations during the quarter.

• As of 30th June 2018, the Company has a total cash balance of Rs 13,205.60 crore comprising of Rs 6,104.90 crore of free cash and Rs 7,100.70 crore of restricted cash. The total debt as on 30th June 2018 was Rs 2,521.90 crore. The entire debt for IndiGo is aircraft related. IndiGo does not have any working capital debt.

• The Company continued leading airline in terms of on-time performance and we ranked No. 1 in the DGCA reported OTP for each of the months of April, May and June with an average OTP of 83.9% for the quarter. The Company Technical Dispatch Reliability was 99.85% and flight cancellation rate was 0.33% for the quarter.

• During Q1FY19, the Company added two new destinations – Hubli and Trichy under the UDAN scheme. This brings our total number of destinations to 52 including 8 international cities. The Company also started nine new routes during the quarter – Calicut to Chennai and Bengaluru, Trichy to Chennai, Bengaluru and Kochi, Hubli to Kochi and Goa, Kochi to Ahmedabad and Madurai to Hyderabad. In addition to this, the Company has also started selling tickets for five new destinations: Dhaka, Gorakhpur, Jorhat, Surat and Tuticorin.

• The Company expects a year over year capacity increase in terms of ASKs of 28% for Q2FY19 and expects capacity increase of 25% for FY19.