IndiGo Q3 results: Loss narrows to Rs 620 crore, revenue down 50% on limited capacity utilisation

Interglobe Aviation Limited, parent company of low-cost carrier Indigo, on Thursday reported net loss for the fourth straight quarter, albeit lower than previous two quarters, due to limited capacity utilisation amid travel restrictions imposed in wake of the coronavirus pandemic. The airline posted a net loss of Rs 620.1 crore for the October-December quarter as against a net profit of Rs 496 crore in the same period last year. The capacity for the quarter was down by 40.8 per cent compared to the same period last year.

The airline had recorded its sharpest quarterly loss in at least five years at Rs 2,844 crore in the June quarter of this fiscal as coronavirus-related restrictions hit its operations badly. The loss narrowed to Rs 1,195 crore in September quarter with ease in travel restrictions.  

The carrier's total revenue halved to Rs 5,142.8 crore in Q3 FY21 from Rs 10,330.2 crore in the corresponding quarter last year, Indigo said in a filing to the BSE. Passenger ticket revenues were at Rs 4,069.30 crore, down 53.6 per cent YoY, while ancillary revenues dropped by 22.1 per cent to Rs 807.8 crore as compared to the same period last year.

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Total expenses for the quarter ended December 2020 were Rs 5,765.9 crore, a decrease of 41 per cent over the same quarter last year.

EBITDAR (Earnings before Interest, Tax, Depreciation, Amortisation, and Rent Costs) loss stood at Rs 987.1 crore as against Rs 1,960.7 crore in Q3 FY20, registering a year-on-year decline of 49.7 per cent. EBITDAR margin stood at 20.1 per cent for the quarter, compared to 19.7 per cent for the same period last year.

Commenting on Q3 earnings, Ronojoy Dutta said, "The high level of consumer confidence in our product has indeed been heartening and we are glad to be making graduated and measured steps to a full recovery. We look forward to a gradual opening up of international scheduled flights during the next few months because increased capacity and aircraft utilisation are so very critical for our return to profitability. We had promised to come out of the crisis stronger than we went in and with the full commitment of all our employees, we are beginning to deliver on that promise."

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As of December 31, 2020, IndiGo had a total cash balance of Rs 18,365.30 crore comprising Rs 7,444.50 crore of free cash and Rs 10,920.70 crore of restricted cash. The total debt (including the capitalised operating lease liability of Rs 24,557.9 crore) was Rs 27,726.1 crore.

As of the end of December quarter, the airline has a fleet of 287 aircrafts, a net rise of 30 aircrafts on YoY basis and 5 on QoQ. This includes 120 A320 CEOs, 1 11 A320 NEOs, 30 A32 I NEOs and 26 ATRs. During the quarter, the carrier operated at a peak of I, 166 daily flights, including non-scheduled flights. IndiGo is currently providing services to 60 domestic destinations and 6 international destinations through Air bubbles flights.

Ahead of Q3 results, shares of IndiGo ended 0.4 per cent higher at Rs 1,590, against the previous closing price of Rs 1,589.30, on the Bombay Stock Exchange.