IndiGo grounded after poor Q2 numbers

InterGlobe Aviation declined 4.46% to Rs 1592 after the company reported a consolidated net loss of Rs 1061.99 crore in Q2 September 2019 as against a net loss of Rs 651.54 crore in Q2 September 2018.

Consolidated net sales increased by 31% to Rs 8105.19 crore in Q2 September 2019 over Q2 September 2018. The result was announced after market hours yesterday, 24 October 2019.

Consolidated Earnings before Interest, Tax, Depreciation and Amortization and Restructuring (EBITDAR) grew 15.9% to Rs 256.40 in Q2 September 2019 over Q2 September 2018. EBITDAR margin fell to 3.2% in Q2 September 2019 from 3.6% in Q2 September 2018.

During the quarter, IndiGo's supplementary rentals and aircraft repair and maintenance cost surged 88% to Rs 1529.78 crore from Rs 812.26 crore a year-ago.

Aircraft fuel expenses rose 2.6% to Rs 3115.40 crore in Q2 September 2019 over Q2 September 2018.

For fiscal year 2020, year over year capacity increase in available seat kilometres (ASKs) is expected to be 25%.

For third quarter fiscal year 2020, year over year capacity increase in ASKs is expected to be 22%.

IndiGo had a total debt of Rs 19841.80 crore at the end of September. It also had total cash of Rs 18736.20 crore.

Commenting on company's dismal Q2 performance, Ronojoy Dutta, CEO said, "In a historically weak quarter, we registered a negative profit before tax margin of 12.7% compared to 16% 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."

On the BSE, 35,000 shares were traded in the counter so far compared with average daily volumes of 33,000 shares in the past two weeks. The stock has hit a 52-week high of Rs 1,911 on 23 September 2019 and a 52-week low of Rs 773 on 25 October 2018.

InterGlobe Aviation is among the fastest growing low cost carriers in the world. The company has fleet of 235 aircraft and provides service to 70 destinations including 17 international cities.

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