Highlights of the Concall

• The Company posted 168% surge in net profit to Rs 495.97 crore on 25% rise in total income from operation to Rs 9,931.69 crore for the third quarter ended December 2019, thanks to increase in capacity growth and load factor, operating margin growth, and lower MTM loss on capitalized operating leases. Operating margin (OPM) increased to 16.9% from 2.7% corresponding previous quarter. Thus, operating profit (OP) zoomed 695% to 1,676.25 crore.

• The Company passenger ticket revenues increased 25.5% to Rs 10,330.2 crore and ancillary revenues jumped 29% to Rs 1,037.30 crore for Q3FY20. Cargo uplift grew by 46% on year over year basis. The Company yield jumped by 1.2% to Rs 3.88 per KM and load factors rose by 2.3 points at 87.6%. As a result, RASK increased 5.6% to Rs 3.91

• The Company Cargo business has maintained its rapid growth during the Q3FY20. IndiGo's domestic cargo market share is above 40%, a sharp increase from the same period last year when it had only 27%.

• The Company total expenses increased by 21.5% to Rs 9,736.90 crore for the Q3FY20. CASK was up 2.1% to Rs 3.69. Fuel CASK decreased by 17.9% compared to 11.9% decrease in ATF prices on a year over year basis, primarily driven by increase in fuel efficient neo aircraft as a proportion of overall fleet. Further, increase in international operations also resulted in a better fuel CASK on account of lower taxes and higher stage length. CASK excluding fuel was up 17.5% to Rs 2.40, driven by mark to market foreign exchange loss on capitalized operating leases, higher maintenance cost and higher employee costs. Excluding the impact of foreign exchange, CASK excluding fuel increased by 9.3% for the quarter.

• INR depreciated to Rs 71.30 per US dollar during Q3FY20 from 70.71 per US dollar corresponding previous quarter. As a result, the Company booked Rs 1.3 billion of mark to market loss on capitalized operating leases. Excluding MTM impact on capitalized operating leases, CASK ex fuel increased by 15%.

• The Company employee costs per ASK have increased to Rs 0.48 rupees compared to Rs 0.40 the same period last year driven by pilots in training, impact of Agile and salary hikes. Further, still have 400 additional pilots undergoing trainings and once these pilots are available to fly, the Company expects an improvement in unit employee costs.

• The Company expects that the "Supplementary Rentals and Maintenance Cost" line item to improve from the current levels starting fiscal 2021 on a per ASK basis at constant currency despite contractual escalations and capacity additions.

• The Company expects a year over year capacity increase in terms of ASKs of 20% for the fourth quarter and 23% for the full fiscal year. For Fiscal Year 2021, we anticipate the capacity increase to be around 20%.

• As of 31st December 2019, the Company had fleet of 257 aircraft including 126 A320ceos, 96 A320neos, 10 A321neo and 25 ATRs; a net increase of 12 aircraft during the quarter. The Company operated a peak of 1,634 daily flights including international operations during the quarter. The Company serviced to 84 destinations including 23 international cities.

• As of 31^st December 2019, the Company had a total cash balance of Rs 20,068.70 crore comprising of Rs 9,412.80 crore of free cash and Rs 10,655.90 crore of restricted cash. The capitalized lease liability as of 31^st December 2019 was Rs 19,204.60 crore. The total debt (including the capitalized lease liability) was Rs 21,555.30 crore.