INTERGLOBE AVIATION (INDIGO) 2020-21 Annual Report Analysis

Wed, 31 Mar

INTERGLOBE AVIATION (INDIGO) has announced its results for the year ended March 2021. Let us have a look at the detailed performance review of the company during FY20-21.

INTERGLOBE AVIATION (INDIGO) Income Statement Analysis

• Operating income during the year fell 59.1% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 112.5% YoY during the fiscal. Operating profit margins witnessed a growth and stood at 3.5% in FY21 as against 11.4% in FY20.
• Depreciation charges increased by 18.3% and finance costs increased by 14.1% YoY, respectively.
• Other income grew by 1.6% YoY.
• Net profit for the year grew by 2384.8% YoY.
• Net profit margins during the year declined from 0.7% in FY20 to 39.7% in FY21.

INTERGLOBE AVIATION (INDIGO) Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	357,560	146,406	-59.1%
Other income	Rs m	15,355	15,600	1.6%
Total Revenues	Rs m	372,915	162,006	-56.6%
Gross profit	Rs m	40,846	-5,088	-112.5%
Depreciation	Rs m	39,739	46,994	18.3%
Interest	Rs m	19,019	21,698	14.1%
Profit before tax	Rs m	-2,557	-58,181	2,175.6%
Tax	Rs m	-220	-116	-47.1%
Profit after tax	Rs m	-2,337	-58,064	2,384.8%
Gross profit margin	%	11.4	-3.5
Effective tax rate	%	8.6	0.2
Net profit margin	%	-0.7	-39.7

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INTERGLOBE AVIATION (INDIGO) Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 189 billion as compared to Rs 164 billion in FY20, thereby witnessing an increase of 15.1%.
• Long-term debt stood at Rs 4 billion as compared to Rs 3 billion during FY20, a growth of 10.1%.
• Current assets fell 7% and stood at Rs 208 billion, while fixed assets rose 12% and stood at Rs 246 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 454 billion as against Rs 445 billion during FY20, thereby witnessing a growth of 2%.

INTERGLOBE AVIATION (INDIGO) Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	58,674	758	-98.7
Current Liabilities	Rs m	164,398	189,260	15.1
Long-term Debt	Rs m	3,466	3,816	10.1
Total Liabilities	Rs m	444,598	453,986	2.1
Current assets	Rs m	224,588	208,163	-7.3
Fixed Assets	Rs m	220,010	245,823	11.7
Total Assets	Rs m	444,598	453,986	2.1

INTERGLOBE AVIATION (INDIGO) Cash Flow Statement Analysis

• INTERGLOBE AVIATION (INDIGO)'s cash flow from operating activities (CFO) during FY21 stood at Rs -16 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs 32 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -18 billion, an improvement of 26% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs -2 billion from the Rs -94 million net cash flows seen during FY20.

INTERGLOBE AVIATION (INDIGO) Cash Flow Statement 2020-21

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-20	Mar-21
Cash Flow from Operating Activities	Rs m	69,718	-16,142	-
Cash Flow from Investing Activities	Rs m	-45,680	31,970	-
Cash Flow from Financing Activities	Rs m	-24,075	-17,753	-
Net Cash Flow	Rs m	-94	-2,102	-

Current Valuations for INTERGLOBE AVIATION (INDIGO)

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -150.9, an decline from the EPS of Rs -6.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,635.0, stands at -10.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 830.6 times, while the price to sales ratio stands at 4.3 times.
• The company's price to cash flow (P/CF) ratio stood at -46.5 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Sales per share (Unadj.)	Rs	929.2	380.4
TTM Earnings per share	Rs	-6.1	-150.9
Diluted earnings per share	Rs	-6.1	-150.7
Price to Cash Flow	x	11.0	-46.5
TTM P/E ratio	x	-176.1	-10.8
Price / Book Value ratio	x	8.8	678.2
Market Cap	Rs m	514,867	514,297
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for INTERGLOBE AVIATION (INDIGO)

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.1x during FY21, from 1.4x during FY20. 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 -1.7x during FY21, from 0.9x during FY20. 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 -7,656.7% during FY21, from -4.0% during FY21. 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 -797.5% during FY21, from 26.5% during FY20. 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 -8.0% during FY21, from 3.8% during FY20. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Current ratio	x	1.4	1.1
Debtors’ Days	Days	3	5
Interest coverage	x	0.9	-1.7
Debt to equity ratio	x	0.1	5.0
Return on assets	%	3.8	-8.0
Return on equity	%	-4.0	-7,656.7
Return on capital employed	%	26.5	-797.5

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 1,068.3 to Rs 1,635.0, registering a gain of Rs 566.7 or around 53.0%.

Overall, the S&P BSE SENSEX is up 74.1% 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)