It was common knowledge that InterGlobe Aviation Ltd would report massive losses for the June quarter due to the lockdown and ensuing travel restrictions. The moot point was, how much?
InterGlobe, which runs budget airline IndiGo, reported a net loss of ₹2,849 crore on revenue of ₹767 crore. It also said that fixed cash burn dropped to about ₹30 crore per day in June from roughly ₹40 crore per day in March. This improvement was helped by cost-cutting initiatives and a gradual increase in the number of flights. For the June quarter, IndiGo’s employee costs and supplementary rentals & maintenance cost declined sequentially by about 17% and 56%, respectively.
The carrier expects cash burn to drop further as it scales up operations, boosting its liquidity position. Speaking of cash, the sequential drop in its free cash was curtailed to ₹1,400 crore. By June-end, free cash stood at ₹7,527 crore, offering comfort to investors that the airline has adequate cash to be able to sail through this storm.
