Informist, Friday, Jul 26, 2024

--InterGlobe Aviation Apr-Jun net profit 27.27 bln rupees

--Analysts saw InterGlobe Aviation Apr-Jun net profit 20.01 bln rupees

--InterGlobe Aviation Apr-Jun net profit 27.27 bln rupees vs 30.87 bln

--InterGlobe Aviation Apr-Jun revenue 195.71 bln rupees vs 166.83 bln

--InterGlobe Aviation: Apr-Jun EBITDAR margin 29.7% vs 31.2% year ago

--InterGlobe Aviation: Apr-Jun load factor 86.7% vs 88.6% year ago

--InterGlobe Aviation: Apr-Jun yield at 5.24 rupees/km, up 1.3% YoY

--InterGlobe Aviation: Had 382 aircraft as of June-end

--InterGlobe Aviation: Total debt at 525.26 bln rupees as of Jun 30

--InterGlobe Aviation: Apr-Jun passenger traffic 27.8 mln, up 6.2% YoY

--InterGlobe Aviation: Capacity up 11.1% YoY at 36.3 bln Apr-Jun

--InterGlobe Aviation: Apr-Jun forex loss at 575 mln rupees

--InterGlobe Aviation: Apr-Jun passenger ticket sales 165.02 bln rupee

--InterGlobe Aviation: Apr-Jun passenger ticket sales up 10% on year

--InterGlobe Aviation: Apr-Jun ATF cost up 22.7% YoY at 64.17 bln rupee

--InterGlobe Aviation: Continue to use free cash to expand fleet

--InterGlobe Aviation: Eye fleet of 600 aircraft by end of this decade

--InterGlobe Aviation: Leased two A320ceo aircraft for 2-3 yrs Apr-Jun

--InterGlobe Aviation: Average fare still in 5,000-6,000-rupee range

--InterGlobe Aviation: Seeing escalation in fuel cost, airport charges

--InterGlobe Aviation: Rising costs may drive ticket prices higher

MUMBAI – InterGlobe Aviation Ltd, which operates low-cost airline IndiGo, today reported a fall of 11.7% on year in net profit as its expenses grew faster than its topline, and overshadowed healthy growth in travel demand. The company clocked a bottomline of 27.27 bln rupees in Apr-Jun, compared to 30.87 bln rupees in the year-ago period. Analysts had projected the metric at 20.01 bln rupees.

In Apr-Jun, the Gurugram-based company's total expenditure rose by nearly 24% on year to 174.49 bln rupees, because of expenses related to fuel, aircraft maintenance and rental, and airport fees. Aircraft fuel expense--the biggest cost incurred by the company--rose 22.7% on year to 64.17 bln rupees, and costs related to supplementary rentals and aircraft repair and maintenance rose 7.4% on year to 26.03 bln rupees. Similarly, airport fees rose 5.5% on year to 12.86 bln rupees, and expenses incurred on renting aircraft and engines rose by a massive 220.7% on year to 6.24 bln rupees.

In the June quarter, InterGlobe Aviation's cost per available seat kilometre was 4.62 rupees, up from 4.17 rupees in the year-ago period. The cost per available seat kilometre excluding fuel rose by 11.1% to 2.86 rupees. These metrics were primarily driven by aircraft grounding-related costs, annualised contractual escalations, inflationary pressures, annual increments and investments in digital technology, the company's management said in a post-earnings analyst call.

The company also recorded a foreign exchange loss of 575 mln rupees compared to a gain of 1.16 bln rupees 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 17.3% on year to 195.71 bln rupees, surpassing brokerages' estimate of 182.57 bln rupees. For the quarter, the airline's passenger ticket revenue was 165.02 bln rupees, representing a growth of 10% on year, and ancillary revenue was 17.63 bln rupees, up 13.9% compared to the same period last year. Its other income for the quarter was 6.80 bln rupees, up 42.4% on year.

In Apr-Jun, InterGlobe Aviation's revenue per available seat kilometre was 5.40 rupees, compared to 5.12 rupees in the year-ago period. Its yield, a metric for profitability, increased 1.3% on year to 5.24 rupees per kilometre.

InterGlobe Aviation's average fares ranged between 5,000 rupees and 6,000 rupees during the quarter. Going forward, the ticket prices will reflect some of the increased costs in fuel and airport fees, the company's management said. On the demand trend in Jul-Sep, InterGlobe Aviation expects a stable revenue environment.

At the end of June, IndiGo's fleet had 382 aircraft compared to 316 in the year-ago period and 367 airplanes in Jan-Mar. The airline operated at a peak of 2,029 daily flights during the quarter, including non-scheduled flights. It provided scheduled services to 88 domestic destinations and 30 international destinations.

Total passenger capacity, in terms of available seat per kilometre, rose 11.1% on year to 36.3 bln during the quarter. In Jul-Sep, the capacity is expected to increase by high single digits as compared to the year-ago period, the company said in a press release.

In Apr-Jun, the airline carried 27.8 mln passengers, up 6.2% on year, commanding a market share of around 61%. The load factor for the airline was 86.7% at the end of June quarter, as against 88.6% 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 58.11 bln rupees, up 11.5% from the 52.11 bln rupees in the year-ago period. Its EBITDAR margin contracted to 29.7% from 31.2% in the year-ago quarter.

As of Jun 30, IndiGo had a total cash balance of 361.01 bln rupees comprising 220.88 bln rupees of free cash and 140.13 bln rupees of restricted cash. Its total debt, including the capitalised operating lease liability, was 525.26 bln rupees. In a post-earnings analyst call, the management said it continued to utilise part of its free cash towards future growth and its goal of becoming a 600-plus aircraft airline by the end of the decade.

Today, shares of InterGlobe Aviation closed 1.38% higher at 4,493.40 rupees on the National Stock Exchange. The company announced its earnings after market hours. End

Reported by Darshan Nakhwa

Edited by Ashish Shirke

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2024. All rights reserved.