Interglobe’s Q4 Net Loss Widens To Rs. -1,147cr As Revenues Fall

Interglobe CAPA IndiGo Airlines - Aviatorsbuzz
Source: teamvtaviation

Interglobe Aviation Ltd reported -26.32% YOY fall in consolidated net revenues for the March-21 quarter at Rs. 6,361.80 crore. On a sequential basis, net sales revenues were up 23.7% compared to total revenues in the December-20 quarter at Rs. 5,142.77 crore.

Full year revenues for FY21 were -58% lower YOY at Rs. 15,678 crore due to pandemic pressures and closure of most of the lucrative routes.

The aviation was already suffering from the narrowing spread between RASK and CASK and that has turned deep into negative, with fixed costs largely unabsorbed.

Interglobe Aviation reported that the net lost in the March-21 quarter widened to Rs. -1,147 crore compared to a loss of Rs. -620 crore in the March-20 quarter and a net loss of Rs. -871 crore in the sequential December-20 quarter. Despite cost cuts, the frequent shutdown of lucrative routes has resulted in a big jolt to the operating margins that have dipped into negative territory.

Interglobe Aviation said that the sharply higher loss was due to the deferred tax credit of Rs. 421 crore in the March-20 quarter. The company has made financial gains from the renegotiation of existing agreements with the original equipment makers or OEMs.

Difficult Year: Interglobe

The Company’s CEO, Ronojoy Dutta said, “This has been a very difficult year with our revenues slumping hard due to COVID, showing some signs of recovery during the period December to February and then slumping again with the second wave of the COVID.”

Mr. Dutta added that while they have seen a sharp decline in revenues in March through May, they were encouraged by the modest revenue improvements starting last week of May and continuing through June.

“We see this pandemic as a period of great trial for both our shareholders and our employees. We are focusing all our efforts and all our energies to strengthen the foundations and the pillars of IndiGo so that we emerge from this trial significantly stronger structurally and even more customer responsive than ever before. While we have produced disappointing financial results this year, we have also positioned ourselves to be the best-in-class airline when the inevitable recovery finally arrives,” he said.

Cash and Debt (As of 31st March 2021:)

• IndiGo had a total cash balance of INR 185,685 million comprising of INR 70,997 million and INR 114,688 million of restricted cash of free cash.

• The capitalised operating lease liability was INR 257,387 million. The total debt (including the capitalised operating lease liability) was INR 298,597 million.

Network and Fleet (As of 31st March 2021:)

• Fleet of 285 aircraft including 100 A320ceos, 120 A320neos, 39 A321neo and 26 ATRs; a net reduction of 2 aircraft during the quarter.

• Operated at a peak of 1,301 daily flights during the quarter including non-scheduled flights.

• Providing services to 65 domestic destinations and 10 international destinations through air bubble flights.

Operational Performance (For the period January-March’21)

• The Company had a Technical Dispatch Reliability of 99.93%.

• The Company had on-time performance of 95.17% at the four key metros and flight cancellation rate of 0.89%

Further, the Interglobe Aviation’s fuel costs rose 67% to 1,914 crore in Q4FY21 as compared to 1,142 crore in Q3FY21.

Sufficient Liquidity Maintained

IndiGo’s balance sheet continues to remain strong with sufficient liquidity as of March 31, 2021. “We continue to remain focused to reduce our unit costs. Stringent controls have been put in place on all discretionary spends and capital expenditures are being approved on a case-to-case basis. We are closely monitoring the current environment and will continue to take necessary actions that strengthen our cash position,” the company further stated.

As of March 31, Interglobe Aviation said IndiGo has 285 aircraft including 100 A320ceos, 120 A320neos, 39 A321neo and 26 ATRs as part of fleet; a net reduction of 2 aircraft during the quarter. It operated at a peak of 1,301 daily flights during the quarter including non-scheduled flights.

In a report, CAPA expects domestic passenger traffic to be around 80-95 million in 2021-22 as against 52.5 million in the previous financial year.

However, despite this growth, it will be well below than around 140 million passenger volumes recorded in 2019-20, CAPA said in the report.

Since 1989, InterGlobe Enterprises has been bridging gaps between people and markets. Over the past three decades, Interglobe Aviation has expanded its vision and gone on to become India’s leading and one of the most respected conglomerates.


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