InterGlobe Aviation Q4 Review - Strengthening Balance Sheet A Long-Term Positive: ICICI Securities
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ICICI Securities Report
InterGlobe Aviation Ltd. will remain one of the biggest beneficiaries of the eventual recovery of air traffic from the Covid-19 induced depression.
Confidence in balance sheet has been significantly restored with availability of funds from qualified institutional placement (Rs 30 billion), sale and leaseback and credit lines (Rs 45 billion) and the already-existing free cash of Rs 71 billion, totalling Rs 146 billion.
This should help the company sail through another challenging year in the event of a strong Covid-19 hit akin to FY21.
The cost structure remains competitive with induction of neos (42%/14% of fleet is A320/321 neos as of FY21 and total neo share could rise to 90% by FY23-end).
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