Below is the Quote on 1QFY21 results of Interglobe Aviation (Indigo) -Yash Gupta, Equity Research Associate, Angel Broking Ltd
Interglobe Aviation (Indigo) reported a weakest of numbers for Q1FY21 as execution was impacted during the quarter as Revenues from operations fell by 91.9% YoY to Rs.766.7 crore for the quarter due to 90.9% YoY drop in Available Seat Kilometers (ASK). The company reported an EBITDA loss of Rs.1,421 crore as compared to an EBITDAR of Rs.2,779 crore in Q1FY20. While fuel costs were down by 96% YoY high fixed costs hurt profitability. As a result the company reported net loss of Rs.2,844 crore as compared to net profit of Rs.1,203 crore in Q1FY20. Other income for the quarter was up by 2.2% to Rs.377 crore which helped shore up profits somewhat. Load factor for the quarter stood at 61.3% as compared to 88.9% in Q1FY20 We believe that operations will remain under pressure even in the second quarter and recovery will be gradual thereafter. We believe that Airlines will be amongst the last sectors to recover to pre Covid levels and hence will remain under pressure for some time to come. However with free cash of Rs.7,528 crore on its balance sheet, Indigo is best placed amongst all the airlines to weather the current crisis.
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