IndiGo reports net loss of Rs 871 crore in Q4 FY20, defers guidance on capacity growth amid COVID-19

InterGlobe Aviation, the parent company that operates IndiGo, has closed financial year 2019-20 with net loss of Rs 233.7 crore. The Gurgaon-headquartered low-cost carrier had posted net profit of Rs 157.2 crore in FY19. Revenue from operations stood at Rs 35,756 crore in FY20, an increase of 25.5 per cent compared to the last year, helped by a capacity increase of 18.8 per cent during the year, InterGlobe Aviation said in a filing to the Bombay Stock Exchange.

For the fourth quarter ended March 31, 2020, IndiGo reported net loss of Rs 870.8 crore as against a net profit of Rs 595.8 crore in the same period last year, due to suspension of air travel in wake of the coronavirus outbreak. Revenue from operations rose by 5.3 per cent year-on-year to Rs 8,299.1 crore.

"Closure of flight operations during national lockdown on account of COVID-19 significantly impacted revenue for the March quarter," the airline said.

The government had suspended all commercial passenger flights on March 25, when the lockdown was first imposed to contain the spread of the novel coronavirus.

IndiGo has also deferred guidance on future capacity growth amid uncertainty due to coronavirus crisis. "With the prevailing uncertainty due to pandemic, we are not in a position to provide this guidance," it said.

The loss before tax was at Rs 1,289.8 crore compared to profit of Rs 626.1 crore in Q4 FY19.

IndiGo's earnings before interest, taxes, depreciation, amortisation, and restructuring or rent costs (EBITDAR) fell sharply by 96 per cent to Rs 86.7 crore from Rs 2,201.9 crore in the corresponding period of the previous year. The EBITDAR margin plunged to 1 per cent from 27.9 per cent in the year-ago period.

Also Read: InterGlobe Aviation share price trading flat ahead of Q4 earnings

For the March quarter of FY20, passenger ticket revenues were Rs 7,130.9 crore, an YoY increase of 1.3 per cent and ancillary revenues were Rs 1,075.7 crore, up 30.2 per cent compared to the same period last year.

Total expenses for the quarter ended March 2020 stood at Rs 9,924.4 crore, an increase of 30 per cent over the same quarter last year.

Commenting on earnings, IndiGo's CEO Ronojoy Dutta said, "In the midst of evey crisis, lies great opportunity. At IndiGo we are determined to emerge from this crisis stronger and more energised than ever. We are positioning ourselves to be a stronger brand, to have a more efficient fleet and a lower cost structure. We fully intend to deliver for India, the best air transportation system in the world."

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As of 31st March 2020, IndiGo had a total cash balance of Rs 20,376.9 crore comprising of Rs 8,928.1 crore of free cash and Rs 11,448.8 crore of restricted cash.The company's total debt rose by 835 per cent YoY to Rs 22,719.2 crore from Rs 2,429.2 crore in Q4 FY19.

The airline had a fleet of 262 aircraft including 123 A320ceos, 100 A320neos, 14 A321 nco and 25 ATRs at the end of March quarter of 2020.  The airline added just 5 aircraft during the quarter.

IndiGo has not given any guidance on future capacity growth amid uncertainty due to coronavirus crisis.

"With the prevailing uncertainty due to pandemic, we are not in a position to provide this guidance," it said.

Ahead of earnings announcement, shares of InterGlobe Aviation closed Tuesday's trade at Rs 945.55 apiece, down 0.83 per cent, on the BSE.