InterGlobe Aviation reports improved topline because of higher traffic numbers while higher fuel costs hamper margin | Q4 FY22 Result & Earning Call Highlights.

Q4FY22 Results

• Revenue from Operations of Rs 8020.74 crore for the quarter, an increase of 28.89% against Rs 6222.95 crore compared to same period last year.
• Total expenses for the quarter ended March 2022 were Rs 7982.86 crore, an increase of 40.76% over the same quarter last year.
• EBITDAR stood at Rs 171.8 crore with EBITDAR margin of 2.1% for the quarter, compared to EBITDAR of Rs 648.3 crore with EBITDAR margin of 10.4% for the same period last year.
• Loss before tax was at Rs 1677.51 crore, compared to loss before tax of Rs 1157.51 crore for the same period last year
• The low-cost air carrier reported consolidated net loss of Rs 1681.8 crore in Q4 March 2022, compared with net loss of Rs 1147.16 crore in Q4 March 2021.
• As of 31st March 2022, IndiGo had a total cash balance of Rs 18227.5 crore comprising Rs 7763.2 crore of free cash and Rs 10464.4 crore of restricted cash.
• For the quarter, the company's passenger ticket revenues were Rs 6884.7 crore, an increase of 38.4% and ancillary revenues were Rs 1058.3 crore, an increase of 18.8% compared to the same period last year.
• The capitalized operating lease liability was Rs 31665.6 crore. The total debt (including the capitalized operating lease liability) was Rs 36877.8 crore.

FY22 Results

• Revenue from Operations of Rs 25930.93 crore for the year, an increase of 77.12% against Rs 14640.63 crore compared to last year.
• Total expenses for the year ended March 2022 were Rs 25383.59 crore, an increase of 73.22% over the last year.
• EBITDAR stood at Rs 1148 crore with EBITDAR margin of 4.4% for the year, compared to EBITDAR of Rs 622.7 crore with EBITDAR margin of 4.3% for the last year.
• Loss before tax was at Rs 6153.7 crore, compared to loss before tax of Rs 5818.1 crore for the last year
• The low-cost air carrier reported consolidated net loss of Rs 6161.8 crore in year FY22, compared with net loss of Rs 5806.4 crore in FY21.

Business Highlights

• Available seat-kilometer (ASK) rose 5.3% to 2040 crores in Q4 March 2022 over 1920 crore in Q4 March 2021.
• Revenue passenger-kilometer (RPK) jumped 16.2% to 1560 crore in Q4 March 2022 over 1350 crore in Q4 March 2021.
• Load factor rose 6.5 points to 76.7% in Q4 March 2022 from 70.2% in Q4 March 2021. Passenger load factor, or load factor, measures the capacity utilization of public transport services like airlines, passenger railways, and intercity bus services. It is generally used to assess how efficiently a transport provider fills seats and generates fare revenue.
• CASK (cost per available seat-kilometre) rose 24% to Rs 0.479 crore in Q4 March 2022 over Rs 0.386 crore in Q4 March 2021. CASK excluding fuel stood at Rs 0.321 crore, recording a 12% growth over the same quarter last year.
• As of 31st March 2022, fleet comprised 275 aircraft including 41 A320 CEOs, 143 A320 NEOs, 56 A321 NEOs and 35 ATRs: a net reduction of 8 aircraft during the quarter.
• The company said that in the fourth quarter fiscal year 2022, capacity in terms of ASKs is expected to reduce by around 10-15% as compared to the third quarter fiscal year 2022.
• Increase in number of passengers by 10.3% compared to the same period last year.
• Fuel prices increased by 61.0% compared to the same period last year.

Conference Call Highlights

• International flights operated in Mar 22 were +100; about 90% of pre-Covid levels being operated in Q1FY23 so far.
• Total capacity deployed would translate into an ASK of +55-60% in FY23 v/s capacity deployed in FY22.
• International bookings are better than pre-Covid levels and people are booking well in advance.
• 2.5x capacity deployed in Q1FY23 as compared to Q1FY22.
• April fuel prices +11% than March and May fuel prices +6% than in April.
• International market to grow faster than the domestic market for INDIGO – 40% of total share in the next five years.
• Seasonally, the March quarter is weaker than the December quarter.
• 5 crore passengers served in FY22 (+62%) as compared with FY21.
• Corporate travel recovery to pre-Covid levels right now; was 64% of pre-Covid levels in Mar 22.
• Higher ATF prices by 15% and lower ASK affected 4QFY22 for INDIGO adversely.
• Higher traffic than pre-Covid levels in Q1FY23 so far

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