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

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

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	-

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

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

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))