IndiGo posts `871 cr loss, to try new revenue models
New Delhi, June 2: Faced with headwinds due to the coronavirus pandemic, the country' largest carrier IndiGo will experiment with new network and revenue models as well as implement measures that will result in additional liquidity of up to Rs 4,000 crore.
InterGlobe Aviation, the parent firm of IndiGo, on Tuesday reported a net loss of Rs 871 crore in the March quarter and would not be doling out any dividend.
"We will be reducing our unit costs even further, making our fleet more efficient, ensuring our capacity is right sized to the market and experimenting with new network and revenue models," IndiGo CEO Ronojoy Dutta said in an earnings call.
Amid the challenging environment, Dutta emphasised that in these times, the focus must shift from profitability and growth to managing cash and liquidity.
"To preserve cash, we are not looking to pay any dividend this year. We will continue to take steps to shore up our liquidity... We are in the process of revising full year capacity guidance," he said.
IndiGo CFO Aditya Pande said the company has taken various steps to reduce costs and improve liquidity.
There have been 5-25 per cent salary cut across the organisation, except for certain employees with lower pay grade and all merit-based salary increments have been deferred, among other measures, he added.
"We will be constantly reviewing the numbers and adjust them to revenue environment... We are looking at every element of cost and working with partners to work out better prices and terms... We have reached out to suppliers for favourable credit terms," he said.
These measures, he said, would result in additional liquidity of Rs 3,000-4,000 crore over nine months.
In the three months ended March, Interglobe's total income increased to Rs 8,634.6 crore. The same stood at Rs 8,259.7 crore in the year-ago period.
Revenue from operations rose to Rs 8,299.1 crore.
However, total expenses shot up 30 per cent to Rs 9,924.4 crore in the latest March quarter. —PTI