For Q2FY20, passenger ticket revenues were Rs 7,100.80 crore, an increase of 34.44% and ancillary revenues were Rs 930.20 crore, an increase of 29.8% compared to the same period last year. Total expenses for the Q2FY20 were Rs 9,571.60 crore, an increase of 27.6% over the same quarter last year. CASK excluding fuel was Rs 2.56, a decrease of 17.2% over the same quarter last year. Excluding the impact of foreign exchange, CASK excluding fuel increased by 3.1% for the quarter.

Commenting on the quarter performance, Mr. Ronojoy Dutta, Company's CEO, said "In a historically weak quarter, we registered a negative profit before tax margin of 12.7% compared to 16% margin loss registered in the same quarter last year. While our revenue performance was much better during the quarter, the losses were accentuated by forex losses on operating lease liabilities created under IND AS 116, and re-assessment of accrual estimates for future maintenance cost. We remain focused on our growth plans and are expanding both domestically and internationally. We added 7 new domestic destinations and 6 new international destinations this past quarter and are looking to further grow our network profitably."

Network and Fleet

• Fleet of 245 aircraft including 129 A320ceos, 89 A320neos, 6 A321neo and 21 ATRs; a net increase of 10 aircraft during the quarter.
• Operated a peak of 1,476 daily flights including international operations during the quarter.
• Service to 77 destinations including 19 international cities.

• For Q2FY20, the Company had a Technical Dispatch Reliability of 99.81%, on-time performance of 79.5% at four key metros and flight cancellation rate of 0.92%.

Quarterly Performance

The total income from operation inclined 31% to Rs 8,105.19 crore for the second quarter ended September 2019. For the quarter, passenger ticket revenues were Rs 7,100.80 crore, an increase of 34.44% and ancillary revenues were Rs 930.20 crore, an increase of 29.8% compared to the same period last year.

Total expenses for the Q2FY20 were Rs 9,571.60 crore, an increase of 27.6% over the same quarter last year. CASK excluding fuel was Rs 2.56, a decrease of 17.2% over the same quarter last year. Excluding the impact of foreign exchange, CASK excluding fuel increased by 3.1% for the quarter.

Operating margin (OPM) stood at -0.2% from -16.2% corresponding previous quarter. Thus, operating loss (OL) was Rs 14.22 crore during the quarter as against OL of Rs 1,003.97 crore corresponding previous quarter. Other income gained 32% to Rs 434.58 crore. With 226% jump in interest cost to Rs 423.46 crore and 465% rise in depreciation cost to Rs 1,028.74 crore, the Company booked Loss Before Tax (LBT) of Rs 1,031.83 crore as aganst LBT of Rs 987.19 crore corresponding previous quarter. With Rs 30.15 crore taxation outgo during the quarter as compared tax credit of Rs 335.65 crore in corresponding previous quarter, the net loss for the quarter stood at Rs 1,061.99 crore, 63% higher from net loss of Rs 651.54 crore in corresponding previous quarter.

The loss was driven by certain cost headwinds. These costs fall into three major categories: 1. Mark to market loss due to capitalization of operating lease liabilities, 2. Re-assessment of accrual estimates for future maintenance cost, and 3. One-time adjustment owing to adoption of lower tax rates.

Half yearly performance

The total income from operation inclined 38% to Rs 17,525.26 crore for the six month ended September 2019. OPM turned to14.3% from -8% corresponding previous period. The turnaround of operating margin to positive led Operating Profit (OP) of Rs 2,513.40 crore from Operating profit (OP) of Rs 1,015.04 crore corresponding previous period.

Other income inclined 26% to Rs 801.46 crore. With 280% rise in interest cost to Rs 907.64 crore and 472% jump in depreciation cost to Rs 1,929.65 crore, the Profit Before Tax (PBT), as a result, was Rs 477.57 crore as compared LBT of Rs 955.85 crore corresponding previous period. The tax outgo for the period was Rs 336.42 crore. Thus, the company booked net profit of Rs 141.16 crore as compared to net loss of Rs 623.75 crore in corresponding previous quarter.

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 203.43 crore from Operating profit (OP) of Rs 2,956.51 crore in corresponding previous period.

Other income inclined 40% to Rs 1,324.60 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 147.38 crore as compared PBT of Rs 3,126.68 crore in corresponding previous period. The tax credit for the period was Rs 304.63 crore as against tax outflow of Rs 884.30 crore in corresponding previous period. Thus, the company booked net profit of Rs 157.25 crore, down by 93% from net profit of Rs 2,242.37 crore in corresponding previous year.

• As of 30th September 2019, IndiGo had a total cash balance of Rs 18,736.20 crore comprising of Rs 8,706.30 crore of free cash and Rs 10,029.90 crore of restricted cash. Post servicing of debt and lease obligations, IndiGo generated Rs 3,334 crore through its operating activities for the half year ended September 2019.

• The capitalized lease liability as of 30th September, 2019 was Rs 17,464 crore. The total debt (including the capitalized lease liability) was Rs 19,841.80 crore.

Future Capacity Growth

• Third quarter fiscal 2020 year over year capacity increase in ASKs is expected to be 22%.
• Full year fiscal 2020 year over year capacity increase in ASKs is expected to be 25%.

Awards and Accolades

• IndiGo was awarded the ‘Best Domestic Airline' at FICCI's first edition of Travel and Tourism Excellence Award.

• IndiGo learning academy- ‘ifly' won awards for best practices in Learning and Development under six different categories at the TISS LEAPVAULT Chief Learning Officer (CLO) awards by the Tata Institute of Social Sciences.

The scrip hovers around Rs 1,666.35 (24 October 2019) on the BSE.