Interglobe Aviation's Q1 net profit at Rs 811 crore; sees 20% rise in capacity ahead

Key Highlights: 

• Indigo posted net profit of Rs 811.1 crore in Q1
• Revenue from operations stood at Rs 5,752.90 crore
• Passenger revenue  increases by 28% in Q1

Interglobe Aviation (Indigo) surpassed analysts estimates in both top-line (revenue) and bottom-line (net profit) on year-on-year basis for the quarter ended June 30, 2017. 

Indigo posted net profit of Rs 811.1 crore, rising by 37.07% compared to Rs 591.7 crore recorded in the corresponding period of the previous year. Q1 net profit increased by a whopping 84.21% from Rs 440.30 crore of the preceding quarter. 

Revenue from operations stood at Rs 5,752.90 crore, witnessing growth of 25.64% year-on-year (YoY) and 18.66% quarter-on-quarter (QoQ) basis. 

A Bloomberg poll estimated Indigo's net profit and revenue to be at Rs 708 crore and Rs 5,680 crore respectively. 

Aditya Ghosh said, "We are pleased to report our highest ever profit after tax this quarter. At the same time, were ranked number 1 in one-time performance for the quarter. This strong financial and operational performance allows us to stay focused on growing our network."

For the quarter, passenger revenue was at Rs 5,078 crore, up 27.9% and ancillary revenues were at Rs 588.5 crore gradually up by 1.4% as against a year ago same period. 

Meanwhile, total expenses also saw increase of 20.9% to Rs 4,831.2 crore over the same quarter of previous year. CASK excluding fuel was at Rs 1.91 down 2.5% yoy. 

EBITDA was at Rs 1,961.7 crore and margin at 34.1% in Q1FY18 higher compared to a year ago same period. 

As on June 2017, Indigo had a total cash balance of Rs 10,184.7 crore comprising of Rs 5,188.8 crore of free cash and Rs 4,995.9 crore of restricted cash. 

Total debt as on June 2017 stood at Rs 2,524.1 crore. The company stated that entire debt for Indigo is aircraft related and does not have any working capital debt. 

Going ahead, Indigo expects second quarter fiscal 2018 and full year fiscal 2018 to see capacity increase in ASK's by 15% and 20% respectively. 

Indigo expects capacity to grow at a compounded annual growth rate (CAGR) of about 20% for FY18 to FY20.