INTERGLOBE AVIATION (INDIGO) 2017-18 Annual Report Analysis

Sat, 31 Mar

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 13.2% in FY18 as against 11.8% in FY17.
• Depreciation charges decreased by 4.5% and finance costs increased by 1.7% YoY, respectively.
• Other income grew by 16.9% YoY.
• Net profit for the year grew by 35.1% YoY.
• Net profit margins during the year grew from 8.9% in FY17 to 9.7% 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	8,102	9,469	16.9%
Total Revenues	Rs m	193,907	239,677	23.6%
Gross profit	Rs m	21,976	30,297	37.9%
Depreciation	Rs m	4,573	4,369	-4.5%
Interest	Rs m	4,062	4,131	1.7%
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	16,591	22,423	35.1%
Gross profit margin	%	11.8	13.2
Effective tax rate	%	22.6	28.3
Net profit margin	%	8.9	9.7

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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 13% and stood at Rs 65 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	37,243	70,233	88.6
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	57,633	64,977	12.7
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	-6,522	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 1,286.5, stands at 23.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 7.1 times, while the price to sales ratio stands at 2.1 times.
• The company's price to cash flow (P/CF) ratio stood at 17.0 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	43.1	58.2
Price to Cash Flow	x	19.1	17.0
TTM P/E ratio	x	24.4	23.3
Price / Book Value ratio	x	9.1	6.5
Market Cap	Rs m	340,756	454,292
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 improved and stood at 8.6x during FY18, from 6.3x 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 31.9% during FY18, from 44.5% 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 38.2% during FY18, from 41.7% 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 12.6% during FY18, from 13.6% 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	6.3	8.6
Debt to equity ratio	x	0.6	0.3
Return on assets	%	13.6	12.6
Return on equity	%	44.5	31.9
Return on capital employed	%	41.7	38.2

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 1,050.7 to Rs 1,286.5, registering a gain of Rs 235.9 or around 22.4%.

Overall, the S&P BSE SENSEX is up 12.1% over the year.

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

Read: Latest Annual Report Analysis of INTERGLOBE AVIATION (INDIGO)