Highlights of the Concall

• The Company posted 75% drop in net profit to Rs 190.89 crore despite 28% jump in total income from operation to Rs 7,916.22 crore for the third quarter ended December 2018, hurt by adverse impact of rupee depreciation, higher fuel prices and the competitive fare environment. Aircraft fuel expenses rose 69% to Rs 3,410.37 crore as average aviation fuel price in India during the quarter was 31% higher than the same period last year. The average exchange rate for the quarter was Rs 72.1 per U.S. Dollar compared to Rs 64.8 per U.S. Dollar in the same quarter last year. This had an adverse year over year impact of Rs 2.7 billion on dollar denominated expenses. Operating margin (OPM) reduced to 2.8% from 16.7% in corresponding previous quarter. Thus, Operating profit (OP) declined 79% to Rs 219.24 crore.

• For Q3FY19, passenger ticket revenues were Rs 7,065.90 crore, an increase of 32.8% and ancillary revenues were Rs 805.10 crore, an increase of 15% compared to the same period last year. Total expenses for the quarter ended December 2018 were Rs 8,038.50 crore, an increase of 50.6% over the same quarter last year. CASK excluding fuel was Rs 2.04, an increase of 6.3% 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 decreased by 0.4% over the same period last year.

• As of 31st December 2018, IndiGo had a total cash balance of Rs 14,136.10 crore comprising of Rs 4,618.30 crore of free cash and Rs 9,517.80 crore of restricted cash. The total debt as on 31st December 2018 was Rs 2,475.90 crore. The entire debt for IndiGo is aircraft related.

• For Q3FY19, the Company total capacity was 21.6 billion ASKs, an increase of 32.9% compared to the same period last year. RASK for the quarter was Rs 3.70 rupees compared to 3.82 rupees during the same quarter last year, a decline of 3%. The Company yields were up by 3.7% to Rs 3.83 while load factors were down by 3.2 points at 85.3%.

• The Company CASK for the quarter was Rs 3.61 compared to Rs 3.16 during the same period last year, an increase of 14.5%. This increase was primarily driven by increase in fuel prices and currency depreciation. The currency depreciation also impacted CASK excluding fuel and as a result, CASK excluding fuel was Rs 2.04 in the current quarter, an increase of 6.3% from the same period last year. Excluding the impact of foreign exchange, CASK excluding fuel reduced by 0.4%.

• As of 31st December 2018, the Company has fleet of 208 aircraft including 127 A320ceos, 66 A320neos, 1 A321neo and 14 ATRs; a net increase of 19 aircraft during the quarter. The Company operated a peak of 1,336 daily flights including international operations during the quarter. The Company serviced to 64 destinations including 15 international cities; added 6 international and 1 domestic destination during the quarter. The Company remain relentlessly focused on maintaining cost advantage and have taken various steps to create efficiencies and further improve productivity across the organization.

• The Company has received first A321 neo which has a higher seating capacity and lower unit cost compared to the A320neos and also has longer range. The Company plan to start direct flights to Istanbul from March and open other international destinations as the year progresses.

• The Company Ranked as one of the best airlines amongst the top 20 mega airlines globally for on-time performance for the year 2018 by OAG. During the quarter, Company had an on-time performance of 79.1%, Technical Dispatch Reliability of 99.87% and a flight cancellation rate of 0.45%.

• The Company expects a year over year capacity increase in terms of ASKs of 34% for the fourth quarter ended March 2019.