Indigo Airlines Research Tear Sheet Q3 FY22

IndiGo is an Indian low-cost airline. It is headquartered in Gurgaon, Haryana, India. This is a domestic airline with a 282 fleet size. It is one of the low cost carrier flying in Asia. It is the sixth largest carrier in Asia. It was incorporated in the year 2005.The founder is Rahul Bhatia and Rakesh Gangwa. The airways fly across 96 destinations. The stocks are traded on both BSE and NSE. Net profit of 1.3 billion rupees compared to a net loss of 14.4 billion rupees for the quarter ending September 21. EBITDAR of 20.0 billion rupees compared to an EBITDAR of 3.4 billion rupees in the quarter ending September 21. Free cash of 78.1 billion rupees, net increase of 14.6 billion rupees as compared to September end.

Key Financial Highlights

Particulars (in INR million)	Dec’21	Dec’20	Change
Total income	94,801	51,428	84.30%
Total expenses	93,464	57,659	62.10%
EBITDAR	19,955	9,871	102.20%
PBT	1,337	-6,231	121.50%
PAT	1,298	-6,201	120.90%

Particulars (in INR million)	Dec’21	Dec’20
Total Cash	1,73,189	1,83,653
Total Debt	3,51,534	2,77,261

Cash Position

There is a free cash of 78.1 billion rupees, the net increase by 14.6 billion rupees as compared toQ2 FY22 . The total cash at 31 Dec 21 was 173.2 billion rupees. The company is striving each day to improve on our cost metrics and looking at innovative ways to further capitalize on this strength.

Outlook

Expecting that capacity deployed in the Q4 FY 2022 will be reduced by approximately 10-15%.

Yields have increased by 5.2%. These drivers led to a RASK improvement of 13.5% sequentially to 4.09 rupees.

Conference Call Highlights:

Management guidance:

International capacity deployed grew by almost 80%, quarter over quarter and bookings grew by 95%.

Yields have increased by 5.2%.

RASK increased by 13.5% due to a sequential increase in load factors, by 8.6 points and in yields by 5.2% to 4.41 rupees.

Business Update:

IndiGo  finds Tata as ‘formidable competition’ after the Air India deal.

Indigo partners with 255 single-aisle A321neo passenger jets.

Air France and KLM have decided to open250 destinations to IndiGo customers.

Saguna Vaid has been appointed general counsel of Indigo effective Dec 1.

IndiGo has entered into a partnership with Kotak Mahindra Bank to launch co-branded credit card.

IndiGo has appointed Neetan Chopra as chief digital & information officer.

CSIR partners with Indigo for sustainable fuel.