Total revenues (including other income) for the quarter ended December 2016 stood at Rs 5158.43 crore, an increase of 16.8% over the same period last year. For the quarter, passenger revenues were Rs 4369.01 crore, an increase of 16.1% and ancillary revenues were Rs 579.33 crore, an increase of 12.5% compared to same period last year.

Total expenses for the quarter ended December 2016 were Rs 455629 crore, an increase of 30.3% over same quarter last year. CASK excluding fuel was Rs 1.90, a decrease of 7.9% over the same quarter last year despite the depreciation of the Indian rupee from INR 66.15/USD to INR 67.92/USD over this period

Commenting on the June quarter performance, Mr. Aditya Ghosh, President and Whole-time Director of the Company, said "We have reported yet another profitable quarter despite lower yields and higher fuel prices. We see robust traffic growth ahead and we will continue to grow and strengthen our network with a view to maximizing our long term profitability."

Network and fleet

• Increased fleet size to 126 aircraft.
• Operated peak of 854 daily flights including international operations.

Operational achievements

• For Q3FY17, the Company had a Technical Dispatch Reliability of 99.85%, on-time performance of 71.7% at four key metros, and average flight cancellation rate of 1.69%.

Quarterly Performance

The total income from operation inclined 16% to Rs 4986.50 crore for the third quarter ended December 2016. The growth in sales was largely came on account of 18% rise in revenue from domestic operation (constitutes 92% of total revenue) to Rs 4626.62 crore and 4% jump in revenue from international operation (constitutes 8% of total revenue) to Rs 377.90 crore. For the quarter, passenger revenues were Rs 4369.01 crore, an increase of 16.1% and ancillary revenues were Rs 579.33 crore, an increase of 12.5% compared to same period last year.

Operating margin (OPM) has decreased to 12.5% from 23.6% corresponding previous quarter, due to jump in operating expenditure by 33% to Rs 4362.04 crore. Fuel cost rose 43% to Rs 1671.20 crore, Aircraft & engine Lease Rentals grew 24% to Rs 816.38 crore and landing fees & en route charge inclined 44% to Rs 505.65 crore.

CASK excluding fuel was Rs 1.90, a decrease of 7.9% over the same quarter last year despite the depreciation of the Indian rupee from INR 66.15/USD to INR 67.92/USD over this period

As percentage to sales and net of stock adjustments, aircraft fuel expenses increased 640 bps to 33.7%, Aircraft & engine lease rentals cost rose 110 bps to 16.5%, landing fees & en route charges rose 200 bps to 10.2%, and other cost inclined 190 bps to 16.3% while employee cost fell 30 bps to 10.6%. Thus, loss in OPM leads to decline in Operating Profit (OP) by 38% to Rs 624.46 crore.

Other income inclined 43% to Rs 171.93 crore, thus, the PBDIT declined 30% at Rs 796.39 crore. With 5% slide in interest cost to Rs 75.86 crore and 10% drop in depreciation cost to Rs 118.39 crore, the Profit Before Tax (PBT), as a result, de-grew by 35% to Rs 602.13 crore. The tax outgo dropped 58% to Rs 114.88 crore, as the effective tax rate reduced to 19.1% during the quarter from 29.5% same period last year. Thus, net profit for the quarter stood at Rs 487.26 crore, down 25% from Rs 650.34 crore corresponding previous quarter.

Nine month performance

The total income from operation inclined 14% to Rs 13732.28 crore for the nine month ended December 2016. Operating margin (OPM) has decreased by 710 bps to 11.9%, thus, loss in OPM leads to decline in Operating Profit (OP) by 29% to Rs 1635.30 crore. Other income inclined 50% to Rs 495.30 crore, thus, the PBDIT declined 19% at Rs 2130.60 crore. With 9% jump in interest cost to Rs 253.13 crore but 7% drop in depreciation cost to Rs 352.08 crore, the Profit Before Tax (PBT), as a result, fell 24% to Rs 1525.39 crore. The tax outgo dropped 49% to Rs 306.51 crore. Thus, net profit slid 13% to Rs 1218.88 crore.

Annual Financial Performance

For the financial year ended March 2016 (FY 2016), Sales of the company inclined 16% to Rs 16139.91 crore. The growth in sales was largely came on account of 15% rise in revenue from domestic operation (constitutes 91% of total revenue) to Rs 14689.34 crore and 22% jump in revenue from international operation (constitutes 9% of total revenue) to Rs 1469.73 crore.

OPM grew by 520 bps to 18.6%, chiefly due to reduction in cost of aircraft fuel to 35.3% (from 48% corresponding previous period) as percentage to sales and net of stock adjustments. However, employee cost rose 330 bps to 13.2%, aircraft & engine rental cost inclined 300 bps to 19.3%, landing fees & en route charge grew 130 bps to 10.4%, and other expenses jumped 130 bps to 18% during the period. As a result, Operating Profit grew 61% to Rs 3005.49 crore.

With 17% rise in other income to Rs 461.39 crore, but with jump in interest cost outgo by 17% to Rs 134.85 crore and depreciation cost by 66% to Rs 503.08 crore, the PBT, as a result, inclined 53% to Rs 2828.95 crore. The tax outgo spiked 55% to Rs 839.23 crore. The effective tax rate grew 30 bps to 29.7% during the period. Thus, the net profit surged 53% to Rs 1989.72 crore.

Cash & Debt

• As of 31^st December 2016, IndiGo had a total cash balance of Rs 8455 crore comprising of Rs 3786.5 crore of free cash and Rs 4668.5 crore of restricted cash.

• The total debt as on 31^st December 2016 was Rs 2746.6 crore. The entire debt for IndiGo is aircraft related. IndiGo does not have any working capital debt.

• Year-over-year increase in capacity, measured in ASK, expected to grow at approximately 40% each in Q4 fiscal 2017.

• Expected fleet of 133 aircraft at the end of current fiscal year.

The scrip hovers around Rs 900.85 (31^st January 2017) on the BSE.