IndiGo operator reports 5-fold growth in Q4 profit, but FY19 net falls 93%

InterGlobe Aviation, the operator of low cost carrier IndiGo, reported a whopping 401.2 percent year-on-year growth in March quarter profit at Rs 589.6 crore, but full-year net fell significantly due to higher oil prices.

The profit in Q4FY18 at Rs 117.64 crore was low due to inflated fuel prices, the key portion of operating expenses. The suspension of operations by Jet Airways also benefitted the company in Q4FY19.

Revenue during the quarter grew by 35.9 percent year-on-year to Rs 7,883.3 crore, the company said in its filing.

At operating level, earnings before interest, tax, depreciation, amortisation and rent (EBITDAR) shot up 93.7 percent to Rs 2,192.6 crore and margin jumped 830 bps to 27.8 percent compared to the same period last year.

Numbers were ahead of analyst estimates. Profit was expected at Rs 470 crore on revenue of Rs 7,700 crore and EBITDAR was estimated at Rs 2,114 crore with margin at 26.7 percent for the quarter, according to a CNBC-TV18 poll estimates.

Yield increased by 12 percent to Rs 3.70 per km in Q4FY19, against Rs 3.31 per km in the corresponding period last fiscal.

Total expenses for the quarter jumped 28.9 percent year-on-year to Rs 7,643 crore including fuel cost of Rs 2,781.3 crore which increased by 19 percent YoY.

For the financial year 2018-19, profit fell 93 percent to Rs 156.1 crore but revenue increased 23.8 percent to Rs 28,496.8 crore.

"Fiscal 2019 was a tough year for the airline industry in India because of high fuel prices, weak rupee and an intense competitive environment. However, it is a tale of two halves for IndiGo, with the first half of the year incurring losses and the second half of the year experiencing a sharp recovery. Looking ahead, it is difficult not to be bullish about the future," Ronojoy Dutta, CEO said.

InterGlobe said it has a strong balance sheet with total cash of Rs 15,308.1 crore, including free cash of Rs 6,079.6 crore.

The total debt as of March 2019 was Rs 2,429.2 crore and entire debt for IndiGo is aircraft related, it added.