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INTERGLOBE AVIATION (INDIGO) 2017-18 Annual Report Analysis

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INTERGLOBE AVIATION (INDIGO) 2017-18 Annual Report Analysis
Mon, 7 Jan

INTERGLOBE AVIATION (INDIGO) has announced its results for the year ended March 2018. Let us have a look at the detailed performance review of the company during FY17-18.

INTERGLOBE AVIATION (INDIGO) Income Statement Analysis

  • Operating income during the year rose 23.9% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 37.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 12.8% in FY18 as against 11.5% in FY17.
  • Depreciation charges decreased by 4.5% and finance costs increased by 2.7% YoY, respectively.
  • Other income grew by 20.0% YoY.
  • Net profit for the year grew by 35.1% YoY.
  • Net profit margins during the year grew from 8.6% in FY17 to 9.4% in FY18.

INTERGLOBE AVIATION (INDIGO) Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 185,805 230,209 23.9%
Other income Rs m 7,891 9,469 20.0%
Total Revenues Rs m 193,696 239,677 23.7%
Gross profit Rs m 21,433 29,565 37.9%
Depreciation Rs m 4,573 4,369 -4.5%
Interest Rs m 3,308 3,398 2.7%
Profit before tax Rs m 21,443 31,266 45.8%
Tax Rs m 4,852 8,843 82.3%
Profit after tax Rs m 16,592 22,423 35.1%
Gross profit margin % 11.5 12.8
Effective tax rate % 22.6 28.3
Net profit margin % 8.6 9.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



INTERGLOBE AVIATION (INDIGO) Balance Sheet Analysis

  • The company's current liabilities during FY18 stood at Rs 61 billion as compared to Rs 48 billion in FY17, thereby witnessing an increase of 28.0%.
  • Long-term debt down at Rs 22 billion as compared to Rs 24 billion during FY17, a fall of 6.4%.
  • Current assets rose 55% and stood at Rs 146 billion, while fixed assets rose 21% and stood at Rs 46 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 211 billion as against Rs 152 billion during FY17, thereby witnessing a growth of 39%.

INTERGLOBE AVIATION (INDIGO) Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 37,792 70,774 87.3
 
Current Liabilities Rs m 47,846 61,230 28.0
Long-term Debt Rs m 23,957 22,414 -6.4
Total Liabilities Rs m 152,097 211,293 38.9
 
Current assets Rs m 94,464 146,316 54.9
Fixed Assets Rs m 38,190 46,113 20.7
Total Assets Rs m 152,097 211,293 38.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



INTERGLOBE AVIATION (INDIGO) Cash Flow Statement Analysis

  • INTERGLOBE AVIATION (INDIGO)'s cash flow from operating activities (CFO) during FY18 stood at Rs 39 billion, an improvement of 3.2% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs -42 billion, an improvement of 36.9% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs 8 billion, an improvement of 155% on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs 5 billion from the Rs -7 billion net cash flows seen during FY17.

INTERGLOBE AVIATION (INDIGO) Cash Flow Statement 2017-18

Particulars No. of months 12 12 % Change
Year Ending Mar-17 Mar-18
Cash Flow from Operating Activities Rs m 37,821 39,031 3.2%
Cash Flow from Investing Activities Rs m -30,379 -41,595 -
Cash Flow from Financing Activities Rs m -14,012 7,660 -
Net Cash Flow Rs m -6,523 5,176 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for INTERGLOBE AVIATION (INDIGO)

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 58.3, an improvement from the EPS of Rs 45.9 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 1,117.3, stands at 168.2 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 6.4 times, while the price to sales ratio stands at 2.0 times.
  • The company's price to cash flow (P/CF) ratio stood at 16.0 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-17* 12 Mar-18*
Sales per share (Unadj.) Rs 514.0 598.9
TTM Earnings per share Rs 45.9 58.3
Diluted earnings per share Rs 43.2 58.3
Price to Cash Flow x 19.1 16.0
TTM P/E ratio x 158.2 168.2
Price / Book Value ratio x 9.0 6.4
Market Cap Rs m 403,852 429,478
Dividends per share (Unadj.) Rs 34.0 6.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for INTERGLOBE AVIATION (INDIGO)

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 2.4x during FY18, from 2.0x during FY17. The current ratio measures the company's ability to pay short-term and long-term obligations.

    Interest Coverage Ratio: The company's interest coverage ratio deteriorated and stood at 10.2x during FY18, from 7.5x during FY17. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

  • Profitability Ratios
  • Return on Equity (ROE): The ROE for the company declined and down at 31.7% during FY18, from 43.9% during FY18. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

    Return on Capital Employed (ROCE): The ROCE for the company declined and down at 37.2% during FY18, from 40.1% during FY17. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

    Return on Assets (ROA): The ROA of the company declined and down at 12.2% during FY18, from 13.1% during FY17. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-17* 12 Mar-18*
Current ratio x 2.0 2.4
Debtors’ Days Days 3 4
Interest coverage x 7.5 10.2
Debt to equity ratio x 0.6 0.3
Return on assets % 13.1 12.2
Return on equity % 43.9 31.7
Return on capital employed % 40.1 37.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



To see how INTERGLOBE AVIATION (INDIGO) has performed over the last 5 years, please visit here.

INTERGLOBE AVIATION (INDIGO) Share Price Performance

Over the last one year, INTERGLOBE AVIATION (INDIGO) share price has moved up from Rs 1,198.5 to Rs 1,117.3, registering a loss of Rs 81.2 or around 6.8%.

Overall, the S&P BSE SENSEX is up 5.9% over the year.

(To know more, check out historical annual results for INTERGLOBE AVIATION (INDIGO) and quarterly results for INTERGLOBE AVIATION (INDIGO))

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