Missing Street estimates by a huge margin, the country’s largest carrier IndiGo on Monday posted one of its worst quarterly performances in over three years, with profits plummeting by as much as 97 per cent year-on-year to Rs 27.8 crore during the April-June period. The airline also saw a decline in its yields — its earnings per passenger per kilometre — by as much as 5.4 per cent to Rs 3.62 versus Rs 3.83 in the corresponding quarter last year, with fuel costs escalating by 54.4 per cent for the quarter to Rs 2,715.6 crore from Rs 1,759.2 crore.
Revenue from operations grew 13.2 per cent year-on-year to Rs 6,512 crore. Earnings before interest, tax, depreciation, amortisation and rent (EBITDAR) declined 42.4 per cent year-on-year to Rs 1,130.1 crore and the margin nearly halved to 17.3 per cent from 34.1 per cent.
The airline incurred a foreign exchange loss of Rs 246 crore during the quarter against Rs 65 core profit it made in Q1FY18, with the rupee hovering over the Rs 68-mark versus the US dollar. The per-dollar rate was around Rs 64 in the April-June quarter last year. Payments like aircraft lease rentals, maintenance costs etc are dollar-denominated expenses for airlines. Passenger yield (revenue per kilometre) was down 5.4 per cent to Rs 3.62 as the airline did not pass on the entire cost burden to passengers. IndiGo’s ATF cost jumped 54 per cent y-o-y from Rs 1,759 crore to Rs 2,715 crore in Q1FY19. —FE