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InterGlobe Aviation, the largest domestic airline by market share, posted sharp 401% jump in net profit to Rs 589.59 crore on the back of 36% rise in total income from operation to Rs 7,883.27 crore for the fourth quarter ended March 2019. The stellar performance was largely due to rise in airfares after Jet Airways cessation of services during the period. Operating margin (OPM) improved by 600 bps to 7.5%. Thus, Operating profit (OP) inclined 564% to Rs 591.36 crore.
For the quarter, passenger ticket revenues were Rs 7037.30 crore, an increase of 40.2% and ancillary revenues were Rs 826.40 crore, an increase of 14.1% compared to the same period last year. Total expenses for the quarter ended March 2019 were Rs 7643 crore, an increase of 28.9% over the same quarter last year. CASK excluding fuel was Rs 2.09, an increase of 6.7% over the same quarter last year. The Company CASK excluding fuel was majorly impacted by the adverse movement in foreign exchange in the quarter. Excluding the impact of currency depreciation, Company CASK excluding fuel increased by 4% over the same period last year and 2.5% for the full year compared to the same period last year..
Commenting on the quarter performance, Mr. Ronojoy Dutta, Company's CEO, said "Fiscal 2019 was a tough year for the airline industry in India because of high fuel prices, weak rupee and intense competitive environment. However, it is a tale of two halves for IndiGo, with the first half of the year incurring losses and the second half of the year experiencing a sharp recovery. Looking ahead, it is difficult not to be bullish about the future. We see plenty of opportunities for profitable growth in our network and with a robust delivery stream of new aircraft, we are well positioned to capitalize on this growth"
Key Highlights
Network and Fleet
As of 31st March 2019:
- Fleet of 217 aircraft including 130 A320ceos, 71 A320neos, 1 A321neo and 15 ATRs; a net increase of 9 aircraft during the quarter.
- Operated a peak of 1,376 daily flights including international operations during the quarter.
- Service to 68 destinations including 16 international cities; added 1 international and 3 domestic destination during the quarter.
Operational Performance
- For Q4FY19, the Company had a Technical Dispatch Reliability of 99.88%, on-time performance of 76.6% at four key metros and flight cancellation rate of 1.49%.
Quarterly Performance
The total income from operation inclined 36% to Rs 7,883.27 crore for the fourth quarter ended March 2019. For the quarter, passenger ticket revenues were Rs 7037.30 crore, an increase of 40.2% and ancillary revenues were Rs 826.40 crore, an increase of 14.1% compared to the same period last year.
Total expenses for the quarter ended March 2019 were Rs 7643 crore, an increase of 28.9% over the same quarter last year. CASK excluding fuel was Rs 2.09, an increase of 6.7% over the same quarter last year. The Company CASK excluding fuel was majorly impacted by the adverse movement in foreign exchange in the quarter. Excluding the impact of currency depreciation, Company CASK excluding fuel increased by 4% over the same period last year and 2.5% for the full year compared to the same period last year..
OPM increased by 600 bps to 7.5%. As percentage to sales and net of stock adjustments, aircraft fuel expenses decreased 510 bps to 35.4%%, other expenses fell 40 bps to 27.3%, and employee cost dropped 20 bps to 11.2%, while Aircraft & engine lease rentals cost rose 150 bps to 18.7%. Thus, OP inclined 564% to Rs 591.36 crore.
Other income gained 26% to Rs 376.54 crore. With 43% jump in interest cost to Rs 132.58 crore and 70% rise in depreciation cost to Rs 218.52 crore, the Profit Before Tax (PBT), as a result, grew 271% to Rs 616.80 crore. With Rs 27.21 crore taxation outgo during the quarter as compared tax outflow of Rs 48.56 crore in corresponding previous quarter, net profit zoomed by 401% to Rs 589.59 crore.
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 205.44 crore from Operating profit (OP) of Rs 2,956.51 crore corresponding previous period.
Other income inclined 40% to Rs 1,324.94 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 149.05 crore as compared PBT of Rs 3,126.68 crore in corresponding previous period. The tax credit for the period was Rs 305.18 crore as against tax outflow of Rs 884.30 crore in corresponding previous period. Thus, the company booked net profit of Rs 156.14 crore, down by 93% from net profit of Rs 2,242.37 crore in corresponding previous year.
Cash and Debt
- For the year ended March 2019, IndiGo has announced a dividend of Rs 5 per share subject to shareholders'approval.
- As of 31st March 2019, IndiGo had a total cash balance of Rs 15308.10 crore comprising of Rs 6079.60 crore of free cash and Rs 9228.50 crore of restricted cash.
- The total debt as of 31st March 2019 was Rs 2429.20 crore. The entire debt for IndiGo is aircraft related.
Future Capacity Growth
- Fiscal 2020 year over year capacity increase in ASKs is expected to be 30%.
- First quarter fiscal 2020 year over year capacity increase in ASKs is expected to be 30%.
Awards and Accolades
- IndiGo was awarded the Best Low Cost Airline - Asia at the TripAdvisor Travelers' Choice Award 2019 third time in a row.
- IndiGo was also awarded the ‘Passenger Choice Award' for being the ‘Best low-cost carrier in Asia and South Pacific' at the APEX Asia Awards 2019
The scrip hovers around Rs 1663 (27 May 2019) on the BSE.
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