Q3 Result Analysis: Indigo registers a PAT turnaround

InterGlobe Aviation Limited (IndiGo) returned to profit in the third quarter ended December 31, reporting a net profit of Rs. 190 crore. The company had posted a loss of Rs. 652 crore in the September quarter.

The company's net profit fell 75 per cent on year-on-year basis, as it had reported a net profit of Rs. 762 crore in the same period last year. The drop in the profit was due to 31 per cent increase in fuel cost and depreciation of the Indian rupee during this quarter when compared to the same period last year.

During the period, revenue increased 28 per cent to Rs. 7,916 crore as compared to Rs. 6,177.9 crore in the same period last year. There was an improvement in yield due to an increased sales of tickets in 0-15 days booking window and due to festive season of November and December.

In the calendar year 2018, IndiGo inducted 55 new aircraft, including 19 in the October to December quarter. As on December 31, 2018, the airline had a fleet of 208 aircraft which include 127 A320ceos, 66 A320neos, 1 A321neo and 14 ATRs.

The company has a total cash balance of Rs. 14,136 crore comprising Rs. 4,618.3 crore of free cash and Rs. 9,517.8 crore restricted cash. If we calculate per share cash it turns out to be approximately Rs. 120 per share which we can discount from the CMP and value the stock accordingly. The total debt which is aircraft related is Rs. 2,475.9 crore.

On Thursday, the Indigo stock opened at Rs. 1,072.10 per share and touched high/low of Rs. 1,164/1072 per share. At 14.08 hours, the stock was quoting Rs. 1175 per share, up by 5.95 per cent on BSE.