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Informist, Friday, Oct. 25, 2024

 

--InterGlobe Aviation Jul-Sept net loss INR 9.89 bln vs INR 1.88 bln PAT 

--InterGlobe Aviation Jul-Sept revenue INR 169.70 bln vs INR 149.44 bln 

--InterGlobe Aviation Apr-Sept net profit INR 17.38 bln vs INR 32.75 bln 

--InterGlobe Aviation Apr-Sept revenue INR 365.40 bln vs INR 316.27 bln 

--InterGlobe Aviation Jul-Sept EBITDAR margin 14.3% vs 16.4% yr ago 

--InterGlobe Aviation Jul-Sept EBITDAR INR 24.34 bln vs INR 24.47 bln 

--InterGlobe Aviation Jul-Sept load factor 82.6% vs 83.3% yr ago 

--InterGlobe Aviation: Jul-Sept yield INR 4.55/km, up 2.3% on year 

--InterGlobe Aviation: Had 410 aircraft as at September-end 

--InterGlobe Aviation: Jul-Sept net added 28 passenger aircraft 

--InterGlobe Aviation: Jul-Sept passenger traffic 27.8 mln, up 5.8% on year 

--InterGlobe Aviation: Capacity up 8.2% on year at 38.2 bln in Jul-Sept 

--InterGlobe Aviation: Total debt at INR 592.37 bln as of Sept 30 

 

By Darshan Nakhwa

 

MUMBAI – InterGlobe Aviation Ltd, which operates low-cost airline IndiGo, Friday reported a net loss for the first time in seven quarters as its expenses grew at a faster clip than its top line in Jul-Sept. In a traditionally weaker second quarter, results were impacted by headwinds including groundings and fuel costs, the company said in a press release.

 

In Jul-Sept, the company clocked a net loss of INR 9.88 billion compared with a net profit of INR 1.88 billion in the year-ago period. Analysts were divided in their opinion about the company's bottom line for the quarter. Of the total six brokerage estimates, four expected the company to report a net loss, and Elara Securities (India) Pvt Ltd and Nuvama Wealth Management Ltd estimated a net profit of INR 3.11 billion and INR 1.08 billion, respectively.

 

In Jul-Sept, the Gurugram-based company's total expenditure rose nearly 22% on year to INR 186.69 billion, because of expenses related to fuel, aircraft maintenance and rental, and airport fees. Aircraft fuel expense--the biggest cost incurred by the company--rose 13% on year to INR 66.05 billion, and costs related to supplementary rentals, and aircraft repair and maintenance rose 30% on year to INR 27.45 billion. Its airport fees rose 41% on year to INR 13.85 billion, and expenses incurred on renting aircraft and engines nearly quadrupled to INR 7.64 billion from INR 1.96 billion in the year-ago period. The depreciation and amortisation expenses surged by 35% on year to INR 20.88 billion.

 

In the September quarter, InterGlobe Aviation's cost per available seat kilometre was INR 4.69, up from INR 4.19 in the year-ago period. The cost per available seat kilometre excluding fuel rose by 16.8% on year to INR 2.96. The company also recorded a foreign exchange loss of INR 2.40 billion compared with a loss of INR 6.17 billion in the year-ago period. Airlines in India are exposed to exchange rate fluctuations as certain major costs such as maintenance and lease payments are generally priced in dollars.

 

The airline's revenue from operations rose 14% on year to INR 169.70 billion, surpassing brokerages' estimate of INR 160.44 billion. In Jul-Sept, InterGlobe Aviation's revenue from operations grew at the slowest rate in the last 13 quarters. For the quarter, the airline's passenger ticket revenue was INR 143.59 billion, representing a growth of 10% on year, and ancillary revenue was INR 18.75 billion, up 21% compared with the same period last year. Its other income for the quarter was INR 7.90 billion, up 42% on year.

 

"IndiGo's growth and expansion continued as our top line (total income) grew by 14.6% on a year over year basis, in the second quarter to INR 178 billion. In a traditionally weaker second quarter, results were further impacted by headwinds related to groundings and fuel costs. We have turned the corner as the number of grounded aircraft and associated costs have started reducing," the company's Chief Executive Officer Pieter Elbers said in a press release.

 

"We continue to capitalise on the growth of the Indian market and associated opportunities and at the same time remain a cost leader in this competitive market. It marks a proud moment for us as we launch our business class two weeks from now and offer a new experience to our customers," Elbers said.

 

In Jul-Sept, InterGlobe Aviation's revenue per available seat kilometre was INR 4.45, compared with INR 4.25 in the year-ago period. Its yield, a metric for profitability, increased 2.3% on year to INR 4.55 per kilometre.

 

At the end of September, IndiGo's fleet had 410 aircraft, compared with 334 units in the year-ago period and 382 airplanes in Apr-Jun. The airline operated at a peak of 2,161 daily flights during the quarter, including non-scheduled flights. It provided scheduled services to 88 domestic destinations and 31 international destinations.

 

The company's total capacity, in terms of available seat per kilometre, rose 8.2% on year to 38.2 billion during the quarter. In Oct-Dec, the capacity is expected to increase by early double digits as compared to the year-ago period, the company said in a press release.

 

In Jul-Sept, the airline carried 27.8 million passengers, up 5.8% on year, commanding a market share of around 62.5%. The load factor for the airline was 82.6% at the end of September quarter, as against 83.3% in the year-ago period.

 

At the operational level, the airline said its earnings before finance, income and cost, tax, depreciation, amortisation and aircraft, and engine rental was INR 24.34 billion, down 0.5% from the INR 24.47 billion in the year-ago period. Its EBITDAR margin contracted to 14.3% from 16.4% in the year-ago quarter.

 

As of Jun 30, IndiGo had a total cash balance of INR 393.42 billion comprising INR 243.59 billion of free cash and INR 149.82 billion of restricted cash. The company's total debt, including the capitalised operating lease liability was INR 592.36 billion as of Sept. 30.

 

For Apr-Sept, the company clocked a net profit of INR 17.38 billion, down 47% on year, and its top line was INR 365.40 billion, up 15.5% on year. On Friday, shares of InterGlobe Aviation closed 3.4% lower at INR 4,366.10 per share on the National Stock Exchange. The company announced its earnings after market hours.  End

 

Edited by Akul Nishant Akhoury

 

 

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