Interglobe Aviation Q4 net loss widens to Rs-1,147cr due to fall in revenues and lower tax benefits

Full year revenues for FY21 were -58% lower yoy at Rs15,678cr due to pandemic pressures and closure of most of the lucrative routes. The aviation was already suffering from the narrowing spread between RASK and CASK and that has turned deep into negative, with fixed costs largely unabsorbed.

Net lost in the Mar-21 quarter widened to Rs-1,147cr compared to a loss of Rs-620cr in the Mar-20 quarter and a net loss of Rs-871cr in the sequential Dec-20 quarter. Despite cost cuts, the frequent shutdown of lucrative routes has resulted in a big jolt to the operating margins that have dipped into negative territory.

The sharply higher loss was due to the deferred tax credit of Rs.421cr in the Mar-20 quarter. The company has made financial gains from the renegotiation of existing agreements with the original equipment makers or OEMs.

Financial highlights for Mar-21 compared yoy and sequentially