India’s low-cost airline, Indigo has Posted a consolidated net loss of Rs 2,844 Crore as compared to the Net profit of Rs 1,203 Crore during the corresponding quarter last year.
Airline’s revenue from operations plunged 91.9 per cent YoY to Rs 766.7 crore during the quarter under review. The operations of airline companies were heavily affected during the quarter due to government orders.
“The aviation industry is going through a crisis of survival and therefore, our cash balance remains our number one priority. However, we also recognize that major disruptions offer companies opportunities for improvement in product, customer preference, costs, and employee engagement. We have built a strong team that is working on multiple fronts to ensure that we emerge from this crisis stronger than ever”, The Company’s CEO, Mr. Ronojoy Dutta said.Mr. Ronojoy Dutta
IndiGo Q4 Results FY20 Key takeaways:
- Interglobe Aviation Ltd.’s quarterly revenue from Operations was Rs 767 Crore for the quarter, a decrease of 91.9% against a 90.9% reduction in capacity compared to the same period last year.
- EBITDAR of negative Rs 14,212 million with a negative EBITDAR margin of 185.4% for the quarter, compared to EBITDAR of Rs 2,779 Crore with an EBITDAR margin of 29.5% for the same period last year.
- Loss before tax of Rs 2,843 Crore, compared to profit before tax of Rs 1,509 Crore during the same period last year.
- Net loss of Rs 2,844 Crore compared to a net profit of Rs 1,203 Crore in the same period last year.
- A strong balance sheet with total cash of Rs 18,450 Crore including free cash of Rs 7,528 Crore.
During the period under review, the airline’s stock price underperformed at the bourses. It tanked 7.4 percent during the three month period, as against a 18.4 per cent gain in the benchmark S&P BSE Sensex, ACE Equity data shows.
- Operational Performance: For the period April-June 2020, the Company had a Technical Dispatch Reliability of 99.83%. For June 2020, the Company had an on-time performance of95.5% at four key metros for June and a flight cancellation rate of 1.8%.
In the previous quarter Dutta and the airline’s chief financial officer, Aditya Pande said “The airline is taking various cash conservation and cost-cutting measures to survive. They said salaries had been cut between 5%-25% for most staff, bonuses were deferred, and leave without pay schemes implemented for May-July.
Apart from that, vendor contracts and being reworked. IndiGo has also got to defer 50% of supplementary rentals for this year as those rentals are linked to how much aircraft fly and many will remain grounded for many months, said Pande.”
Network and Fleet– Fleet of 274 aircraft, including 123 A320ceos, 108 A320neos, 18 A321neo, and 25 ATRs; a net increase of 12 aircraft during the quarter, Operated a peak of 418 daily flights including charter flights during the quarter.
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