IndiGo Q1 Review – Cash Burn Exceeds Expectations; Stock Remains Play On Covid-19 Recovery: ICICI Securities

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InterGlobe Aviation Ltd. remains one of the biggest potential beneficiaries of the eventual recovery of air traffic from the Covid-19 induced depression.

However, the impact of Covid 2.0 has been profound with average cash burn of Rs 334 million per day in Q1 FY22.

The total gross free cash balance has shrunk from Rs 71 billion in Q4 FY21 to Rs 56 billion in Q1 FY22, debt excluding capital lease obligation increased from Rs 41 billion in March 2021 to Rs 58 billion in June 2021, and the available untapped liquidity declined from Rs 45 billion in March-21 to Rs 39 billion in June-21.

IndiGo’s proposed qualified institutional placements (Rs 30 billion) will be an incremental available fund.

Click on the attachment to read the full report:

ICICI Securities Indigo Q1FY22 Results Update.pdf


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