New Delhi: InterGlobe Aviation, the parent company of low-cost airline IndiGo, on Thursday reported a net loss of Rs 1,062 crore during the July to September quarter (Q2 FY20).
Total expenses were Rs 9,572 crore, jumping by 27.6% over the same quarter last year and eroding profitability.
"Mark-to-market losses on capitalised operating leases of Rs 428 crore and higher maintenance cost of Rs 319 crore significantly impacted profitability," the airline said.
Revenue from operations totalled Rs 8,105 crore, up 31% against a 24.2% increase in capacity.
Earnings before interest, taxes, depreciation, amortisation, and restructuring or rent (EBITDAR) costs were Rs 256 crore with a margin of 3.2% for the quarter, compared to EBITDAR of Rs 221 crore with the margin of 3.6% for the same period last year.
While the budget carrier reported a loss before tax of Rs 1,032 crore and loss after tax of Rs 1,062 crore, the basic earnings per share were negative at Rs 27.61 for the quarter.
The earnings for Q2 FY20 came amid a fresh feud between promoters Rahul Bhatia and Rakesh Gangwal. Differences between the two resurfaced on October 1 when Bhatia filed litigation against Gangwal in London under the April 2015 shareholders' agreement.
"In a historically weak quarter, we registered a negative profit before tax margin of 12.7% compared to 16% margin loss registered in the same quarter last year," said CEO Ronojoy Dutta.
"While our revenue performance was much better during the quarter, the losses were accentuated by forex losses on operating lease liabilities created under IND AS 116 and re-assessment of accrual estimates for future maintenance cost," he said in a statement.
