BusinessRSS Feed - International

InterGlobe posts Rs 1,062 crore loss in Q2 due to high costs

Gurugram (Haryana) [India], Oct 24 : InterGlobe Aviation, the parent company of low-cost airline IndiGo, on Thursday reported a net loss of Rs 1,062 crore during the July to September quarter (Q2 FY20).

Total expenses were Rs 9,572 crore, jumping by 27.6 per cent over the same quarter last year and eroding profitability. “Mark-to-market losses on capitalised operating leases of Rs 428 crore and higher maintenance cost of Rs 319 crore significantly impacted profitability,” the airline said.

Revenue from operations totalled Rs 8,105 crore, up 31 per cent against a 24.2 per cent increase in capacity. Earnings before interest, taxes, depreciation, amortisation, and restructuring or rent (EBITDAR) costs were Rs 256 crore with a margin of 3.2 per cent for the quarter, compared to EBITDAR of Rs 221 crore with the margin of 3.6 per cent for the same period last year.

While the budget carrier reported a loss before tax of Rs 1,032 crore and loss after tax of Rs 1,062 crore, the basic earnings per share were negative at Rs 27.61 for the quarter. The earnings for Q2 FY20 came amid a fresh feud between promoters Rahul Bhatia and Rakesh Gangwal. Differences between the two resurfaced on October 1 when Bhatia filed litigation against Gangwal in London under the April 2015 shareholders’ agreement.

“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,” said Chief Executive Officer Ronojoy Dutta. “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,” he said in a statement.

The airline remains focused on its growth plans and is expanding both domestically and internationally. “We added seven new domestic destinations and six new international destinations this past quarter and are looking to further grow our network profitably.”

As of September 30, IndiGo had a total cash balance of Rs 18,736 crore comprising of Rs 8,706 crore of free cash and Rs 10,030 crore of restricted cash. Post servicing of debt and lease obligations, IndiGo generated Rs 3,334 crore through its operating activities for the half-year ended September. The capitalised lease liability is Rs 17,464 crore while the total debt (including the capitalised lease liability) totals Rs 19,842 crore.

The airline has a fleet of 245 aircraft including 129 A320ceos, 89 A320neos, 6 A321 neo and 21 ATRs, marking a net increase of 10 aircraft during the quarter. It operated a peak of 1,476 daily flights including international operations during the quarter with service to 77 destinations, including 19 international cities.

Show More

News Desk

Stay tuned to read latest updates and news from all around the world.

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button