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Financial Position Comparison of Airlines in India

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Financial Position Comparison of Airlines in India

The Airlines business is extremely competitive in India. Companies are struggling to maintain their financial health and compete with each other while Low cost carriers like Indigo are changing the way people fly. In this constant state of flux we decided to compare the financial positions of a few listed airlines to understand areas where they draw competitive strength from and areas of weaknesses which can be exploited.

INTERGLOBE AVIATION
Market Price 52 week H/L Market Cap FV Equity Reserves Networth Debt BV PAT EPS P/E Market Share Passenger Load Factor
924 1520/697 35511 10 384.4 6693 7077.4 2241.3 184.12 2242.3 58.33 15.8 40.90% 87%
                           
JET AIRWAYS
Market Price 52 week H/L Market Cap FV Equity Reserves Networth Debt BV PAT EPS P/E Market Share Passenger Load Factor
225 883/163 2558 10 113.6 -7252.73 -7139.13 5295.12 -628.44 -636.45 -56.03 NA 13.70% 83.50%
                           
SPICE JET
Market Price 52 week H/L Market Cap FV Equity Reserves Networth Debt BV PAT EPS P/E Market Share Passenger Load Factor
77.4 156/60 4627 10 599.45 -642.42 -42.97 1008.39 -0.72 557.2 9.30 8.3 12.80% 94.7%

 

A Common Size statement is the best way to compare companies which do not operate at the same scale but are competitors.

COMMON SIZE P/L ACCOUNT FOR THE YEAR ENDED 31/3/2018
Company   INDIGO   JET AIRWAYS   SPICE JET
Particuars   Cr %   Cr %   Cr %
Income                  
Revenue from Operations   23020 96.05   24510.7 97.35   7727.8 97.41
Other Income   946.8 3.95   666.8 2.65   205.6 2.59
Total Income   23967 100.00   25177.5 100.00   7933.5 100.00
                   
Expenses                  
Aircraft Fuel   7760 32.38   7419.8 29.47   2432.6 30.66
Aircraft Engine Rentals   3610 15.06   2456.8 9.76   1037 13.07
Purchase of Stock in Trade   123.8 0.52   0 0.00   9.16 0.12
Changes in inventories of stock-in-trade   1.26 0.01   0 0.00   -6 -0.08
Employee benefits expense   2455 10.24   3174.2 12.61   861.7 10.86
Finance costs   339.8 1.42   848.9 3.37   92.3 1.16
Depreciation and amortisation expense   436.8 1.82   621.14 2.47   231.3 2.92
Airport charges   0 0.00   0 0.00   660.5 8.33
Aircraft Maintenance   0 0.00   0 0.00   1188 14.97
Selling and Distributuon         2828 11.23     0.00
Other expenses   6114 25.51   8553.4 33.97   631.2 7.96
Total expenses   20841 86.96   25902.4 102.88   7376.33 92.98
                   
PBT   3126.6 13.05   -725 -2.88   557.2 7.02
Current tax   669 2.79   0 0.00   0 0.00
Deferred tax (credit) / charge   215.3 0.90   0 0.00   0 0.00
Total Tax   884.3 3.69   0 0.00   0 0.00
                   
 NET PROFIT/LOSS   2242.3 9.36   -636.45 -2.53   557.2 7.02
                   

 

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