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IndiGo posts net loss of Rs 1,062 crore in Q2 due to high maintenance cost

IndiGo Q2 results: Revenue from operations surged 31.1 per cent to Rs 8,539.80 crore as against Rs 6,514.10 crore in the corresponding quarter

twitter-logo BusinessToday.In   New Delhi     Last Updated: October 24, 2019  | 19:27 IST
IndiGo posts net loss of Rs 1,062 crore in Q2 due to high maintenance cost
IndiGo Q2 results:

InterGlobe Aviation, the parent company that operates IndiGo, on Thursday reported a net loss of Rs 1,062 crore for the second quarter ended September 30, dented by forex losses and higher maintenance cost.

"The Gurgaon-headquartered low-cost carrier had posted a net loss of Rs 651.50 crore during the same quarter last year," InterGlobe Aviation said in a filing to the Bombay Stock Exchange.

Revenue from operations surged 31.1 per cent to Rs 8,539.80 crore as against Rs 6,514.10 crore in the corresponding quarter. The total income of the airline jumped 24.2 per cent to Rs 8,539.80 crore in Q2FY20 from Rs 6,514.10 in Q2FY19.

The company's earnings before interest, taxes, depreciation, amortisation, and restructuring or rent costs (EBITDAR) rose by 15.9 per cent Y-o-Y to Rs 256.40 crore from Rs 221.30 crore in the corresponding period of the previous year. The EBITDAR margin slipped to 3.2 per cent compared to 3.6 per cent in the year-ago period.

The other income jumped 32 per cent to Rs 434.60 crore in Q2FY20 against Rs 328.80 crore in Q2FY19.

The total expenses of the company increased by 27.6 per cent Y-o-Y to Rs 9,571.60 crore, led by 465 per cent Y-o-Y jump in depreciation and amortisation expenses at Rs 1,028.70 crore.

Also Read: IndiGo promoters' spat: Bhatia drags Gangwal to Florida court; seeks info on breach of shareholders' pact

During July-September period, revenue from passenger ticket jumped 34.4 per cent year-on-year to Rs 7,100.80 crore, while ancillary revenue increased 29.8 per cent y-o-y to Rs 930.20 crore.

As of September 30, 2019, lndiGo had a total cash balance of Rs 18,736.20 crore, which includes Rs 8,706.30 crore of free cash and Rs 10,029.90 crore of restricted cash. The total  debt of the company stood at Rs 19,841.80 crore compared to Rs 2,641.10 crore in the year ago period, registering a y-o-y growth of 651.3 per cent.

Also Read: IndiGo promoters' spat: Rahul Bhatia files arbitration request against Rakesh Gangwal in London court

Commenting on Q2 earnings, IndiGo CEO Ronojoy Dutta said, "In a historically weak quarter, we registered a negative profit before tax margin of 12.7 per cent compared to 16 per cent margin loss registered in the same quarter last year. While our revenue performance was much better during the quarter, the losses were accentuated by forex losses on operating lease liabilities created under IND AS 116, and re-assessment of accrual estimates for future maintenance cost."

"We remain focused on our growth plans and are expanding both domestically and internationally. We added 7 new domestic destinations and 6 new international destinations this past quarter and are looking to further grow our network profitably," he added.

The InterGlobe Aviation had fleet of 245 aircraft, including 129 A320ceos, 89 A320neos, 6 A32Ineo and 21 ATRs as of September 30, 2019; a net increase of 65 aircraft from the year-ago period.

Ahead of Q2, InterGlobe Aviation shares closed 0.85 per cent higher at Rs 1,668 apiece on the Bombay Stock Exchange.

Edited by Chitranjan Kumar

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