A Study on Aviation Industry (InterGlobe Aviation Ltd & Spicejet Ltd)

2017
A STUDY ON AVIATION INDUSTRY
INTER GLOBE AVIATION LTD AND SPICEJET LTD)
AME : KALPANA DASH
EG. NO :1606281017

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A
STUDY
ON
AVIATION INDUSTRY (INTERGLOBE AVIATION
LTD & SPICEJET LTD)
IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF
Master of Business Administration (MBA)
Second Year
SUBMITTED TO
Institute of Professional Studies and Research (IPSAR)
Recognized by AICTE, Govt. of India
Affiliated to Biju Patnaik University of Technology (BPUT), Rourkela
UNDER THE GUIDANCE OF
CA (Dr.) J.K. Misra (Director)
SUBMITTED BY
Kalpana Dash
Roll No. B/16/32
Regd No. 1606281017
YEAR 2016-2018

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DECLARATION
I affirm that the project titled “A STUDY ON AVIATION INDUSTRY”
being submitted in partial fulfilment for the award of MASTER OF BUSINESS
ADMINISTRATION is the original work carried out by me.
(Signature of the candidate)
KALPANA DASH
ROLL NO: B/16/32
BATCH: 2016-18
I certify that the declaration made above by the candidate is true.
(Signature of the guide)
CA (DR.) J. K. MISRA

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ACKNOWLEDGMENT
I would like to express my gratitude to CA (Dr.) J.K. Misra, Director of
IPSAR group of institutions for giving me an opportunity and facility, support
and co-operation in completing my internship project in timely.
I wish to place my deep sense of gratitude to Prof. A.K. Mishra (Dean) and
Asst. Prof. (Dr.) Mrs. K.K. Acharya of Institute of Professional Studies &
Research (IPSAR), Cuttack.
I owe my boundless thanks and gratitude towards other faculty members of the
IPSAR, Cuttack, for their guidance and help to undergo my internship project
successfully.
I express my sincere thanks to my parents and all mighty for the fulfilment of
this work.
KALPANA DASH

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CONTENTS
Sl. No. Subjects Page No.
1. Objective of Study 5
2. Research & Methodology 5
3. Data Collection 5
4. Industry Profile (Aviation) 6-24
5.  Company Profile
 Data Analysis & Interpretation
(Indigo Ltd & Spicejet Ltd)
25-54
6. Findings & Recommendations 55
7. Conclusion 56
8. Bibliography & References 57
9. Appendix 58-62

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OBJECTIVE OF THE STUDY
 To analyze the structure of Aviation Industry as well as Company.
 To calculate ratios and to perform trend analysis.
 To measure the efficiency of the operations.
RESEARCH METHODOLOGY
Research is defined as the “process which comprises of defining and
redefining problems, formulating hypothesis, or suggested solutions,
collecting, organizing, and evaluating data, making deductions and reaching
conclusions and at last carefully testing the conclusions to determine they fit
the formulating hypothesis”. The project which is being implemented in the
name of “A STUDY ON AVIATION INDUSTRY” is a study conducted to
analyse the performance of various companies of Telecom Industry.
DATA COLLECTION
Secondary data sources:
 Company records,
 Annual report (2012-16),
 Media Reports
 Press Information Bureau
 Directorate General of Civil Aviation (DGCA)
 Airports Authority of India (AAI)
 Union Budget 2017-18

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AIRLINE INDUSTRY
INTRODUCTION
The airlines industries exist in an intensively competitive market in recent year.
There has been an industry wide shake down which will have far effect in the
industry trend towards expanding domestic and international services. In the
past the airline industry was at least partly govt. owned. This is still true in
many countries but in the USA all major airlines come to be privately held.
The History:
The History of Airline Industry:
Since the birth of flight in1903, air travel has emerged as a crucial means of
transportation for people and products. The hundred-plus years following the
invention of the first aircraft have brought about a revolution in the way people
travel. The airline business is a major industry, relied upon by million not only
for transportation but also as a way of making a living.
Early 20th
century:
Airplanes were around the first few years of the 20th
century, but flying was a
risky endeavor not commonplace until 1925. In this year, the Air Mail Act
facilitated the development of the airline industry by allowing the postmaster
to contact with private airlines to deliver mail. Shortly thereafter, the Air
Commerce Act gave the Secretary of Commerce power to establish airways,
certify aircraft, license pilots, and issue and enforce air traffic regulations. The
first commercial airlines included Pan American, Western Air Express and

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Ford Transport Service. Within 10 years, many modern-day airlines, such as
United and American, had emerged as major players.
Mid-20th
century:
In 1938, the civil Aeronautics Act established the Civil Aeronautics Board.
This board served numerous functions, the two most significant being
determining airline’s routes of travel and regulating prices for passenger fares.
The CAB based airfares on average costs, so because airlines couldn’t compete
with each other by offering lower fares. They competed by striving to offer the
best quality service. If the CAB found an airline’s service quality was lacking
on a certain route, it would allow other carriers to begin operating on that
route. In this environment, established airlines enjoyed an advantage over
startups, as new carriers found it difficult to break into existing routes. The
Federal Aviation Agency, now known as the Federal Aviation Administration,
was created in 1958 to manage safety operations.
Deregulation:
In the mid-1970s, Alfred Kahn, an economist and deregulation advocate,
became chairman of CAB. Around the same time, a British airline began
offering exceptionally inexpensive transatlantic flights, awakening a desire for
U.S. - based airlines to lower their fares. These influences led to Congress
passing the Airline Deregulation Act of 1978, ushering in an era of
unencumbered free market competition. The CAB disbanded a few years
thereafter.
Last 20th
century:
Post-deregulation, new carriers rushed into the market, and new routes directly
connected cities previously accessibly only via a string of layovers. Fares
dropped as competition and the number of customers increased. A 1981 air

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traffic controllers strikes brought a temporary setback to the growth, which
continued throughout the 1980s. Some of the major carriers who had
dominated the skies during the middle portion of the century, such as pan
American and TWA, began to collapse in the wake of competition. Such
carriers disappeared completely following the Gulf War and subsequent
recession of the early 1990s. Surviving airlines rode out the recession and
returned to record profitability by the 1990s.
21st
Century:
In 2001, the industry dealt with the effects of another economic downturn, as
business travel decreased substantially while labor and fuel costs increased.
The events 9/12 greatly magnified the airlines issues, leading to a sharp decline
in customers and significantly higher operating costs. Losses continued for
years; the industry as a whole didn’t return to profitability until 2006. A
relatively stable period followed, although controversies arose over service
quality and passenger treatment in terms of flight delays, particularly those
involving planes waiting on the runway. In 2010 and 2011 the U.S.
Department of Transportation issued a series of rules mandating that the
airlines provide adequate modification for passengers in extenuating
circumstances.
AIRLINE INDUSTRY IN US
The airlines industry has been separated into four categories by USA
Department of Transport (DOT).
1) INTERNATIONAL:
130 seats can that have ability to take passengers just about anywhere in
the world. Companies of this category have annual revenue of 1 billion
dollar more.

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2) NATIONAL:
Usually these airlines seat 100-150 people have revenue between 100
million and billion
3) REGIONAL:
Companies with revenue less than 100 million that focus short haul
flights
4) CARGO:
These are the airlines generally transport goods.
Airport capacity root structure and cost to lease or buy the physical
aircraft are significant to airline.
Many countries have national airlines that government owns and operates.
Fully private airlines are subject to a great deal of government regulation for
economic, political, and safety concerns. For instance, governments often
intervene to halt airline labor actions to protect the free flow of people,
communication, and goods, between different regions without compromising
safety.
The airlines industry in US is structured into three main components:
commercial, general, and military. Commercial aviation includes national
carriers such as Delta and American, and regional carriers like Gojet and
SkyWest Airlines. Commercial airlines may also focus on other areas of
business, such as crop dusting, fighting forest fires, and rescue operations.
According to the trade organization airlines for American, commercial aviation
helps drive more than $1.5 trillion per year in U.S. economic activity and more
than 11 million U.S. jobs. Generally aviation includes personal and business or
executive flights and flight instruction. The subsectors of the airlines industry
include operations, maintenance, marketing, and finance divisions.

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Jobs within the industry include aircraft mechanics and service technicians,
airline pilots, copilots, flight engineers, flight dispatchers, cargo, and freight
agent, flight attendants and reservation and transportation ticket agents and
travel clerks. The Bureau of labor statistics reported that in December 2015,
the air transportation industry employed nearly 4, 55,000 workers. In 2014, the
top 10 passenger airlines that employed the most workers in the industry were
United, Delta, American, Southwest, US Airways, JetBlue, Envoy (previously
operated as American eagle), Alaska, SkyWest, and ExpressJet.
AIRLINE INDUSTRY IN INDIA:
Air travel in India was perceived to be an elitist activity for many years.
This view is derived from the ‘Maharajah’ symbol and, due to the prohibitive
cost of air travel the only people who could afford it were the rich and the
powerful.
Until less than a decade ago, all aspects of aviation were firmly controlled by
the Government. In the early fifties, all airlines operations in the country were
merged into either Indian Airline or Air India and by virtue of the
Air Corporations Act, 1953, the monopoly of these air corporations
Contributed for the next forty years.
The Directorate General of Civil Aviation controlled every aspect of flying
including granting flying licenses to Pilots, certifying aircrafts for flight and
issuing all rules and regulations governing Indian airports and airspace.

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Growing Need for Airline Transport
In 1980‘s the Indian economy grew by over five percent on an annual
basis, but suffered from chronic shortages of international air cargo capacity.
As the export industry demanded on-time delivery of raw material and
manufactured goods and as the time-sensitive materials were to be delivered
more frequently by air, capacity constraints was regarded as the key obstacle
that would hinder the industry from enhancing export and foreign currency
exchange earnings. Impacts to the reform of air cargo sector was added in1986,
when the Indian government allowed air taxi operators to provide on demand
services primarily to boost tourism on major routes. In the early 1990sthe
government announced an industry wide economic ‘disengagement ‘policy,
which aimed at moving from a planned closed economy towards a much de-
regulated market system.
NEED FOR RE-PRIVATIZATION POLICY:
In order to promote travel and tourism, India adopted a Re-privatization Policy.
The earlier policy restricted the access of foreign airlines. As a result, potential
tourists were not offered a choice of airlines or seats while travelling to India.
This problem irritated the travelers during the holiday season when it is
difficult, if who were unable to get a seat either into the country or out of it.
It was reiterated argued therefore, that India should adopt a Re-privatization
approach to any foreign carrier wanting to fly into India, which literally meant
allowing them unlimited service, ports of call. Other reasons for Re-
privatization are the promotion of economic efficiency, Reduction of the
involvement of the state in the provision of goods and services, the generation

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of benefits for consumers, the promotion of an enterprise culture and the
achievement of
Wider share ownership. So the re-privatization was both strategic and
financial.
Government welcomed this in order to reduce their budget deficits. It allowed
room for reducing taxes, or shifting the financial burden to the private sector.
INDIA: 1991 PRIVATISATION IN AIRLINE INDUSTRY:
In the year the government threw open the doors of India's moribund public
sector economy, one enterprising poultry farmer from Karjat had a bright idea.
Wouldn't it be great to launch an airline that offered great service and actually
cared for its customers, Parvez Damania, then 32, thought? In the days of
whimsical flight schedules, when matronly Indian Airlines air hostesses and
terrible food epitomized the stifling government control over the civil aviation
sector, good service, a given today, was practically unthinkable.
The government had handed out the first few licenses to private operators, as
"air taxis". A dynamic civil aviation minister, Madhavrao Sc India, opened the
sector to competition by modifying the Air Corporations Act, 1953. Damania
Airways, which debuted in 1992, ushered in a legion of Pretty Young Things
in short skirts and courteous service. The seats began filling up soon.
By 1992, they were carrying over two lakh passengers even though they
accounted for just 2 per cent of traffic. But the dark clouds were fast filling up
and Sc India's resignation was only the first of their woes. Capital was hard to
raise and trained manpower difficult to recruit. Making money was not as easy
as the players had thought. They were further hobbled by harsh government
rules on not advertising their flight schedules or hiring pilots from state-owned
carriers.

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Eventually, Damania's smartest move was in reading which way the wind sock
was blowing. He sold the airline brand and its five 737-200 aircraft to NEPC's
Ravi Prakash Khemka in 1995, less than three years after his maiden flight
when "the numbers didn't add up". The buy-out was doomed and both NEPC
and Damania passed into the crypt of the first wave of aviation entrepreneurs
inscribed with brands like East West and ModiLuft. Their legacy as the
pioneers of the aviation boom Version 1 however endures in today's private
airlines like Jet Airways and Kingfisher who along with Spicejet, Paramount,
Indigo and Go Air command over 80 per cent of the civil aviation sector and
fly 39 lakh passengers every month.
Economy and Prospects
a) Indian Economy: Fastest Growing Major Economy
Indian economy continued to grow at an impressive GDP growth rate of 7.6%
for Financial Year 2015-16 up from 7.2% in Financial Year 2014-15. India
continued to maintain this growth momentum despite a subdued
Growth globally. With this high growth India retained its position as the fastest
growing major economy in the world, ahead of China. For Financial Year
2015-16, agriculture sector grew at 1.2%, manufacturing at 9.3% and services
at 8.8%. CPI inflation declined to 4.9% in Financial Year 2015-16, compared
to 5.9% in Financial Year 2014-15. The Current
Account Deficit narrowed to 1.1% of GDP in Financial Year 2015-16 from
1.3% in Financial Year 2014-15 on the back of contraction in trade deficit.
b) Prospects, Short Term and Medium Term
IMF expects India’s economic growth to continue at 7.6% in 2016 and 2017.
Indian economy is expected to gain as a result of lower commodity prices,
lower than expected inflation, tax reforms and elimination of poorly targeted
subsidies. Various global ratings agencies including S&P, Moody’s and Fitch

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have forecast a GDP growth in the range of 7.5% to 8% for India for the
coming Financial Year, backed by growing consumption base, GST passage
and structural reforms agenda of the Government.
2. Indian Aviation
Indian domestic aviation market was the fastest growing domestic market
globally with an annual growth of 18.8% in Calendar Year 2015 ahead of
Russia (11.9%), China (9.7%) and United States (5.4%), according to IATA.
India’s air transport sector supports 8 million jobs and contributes USD 72
billion to the GDP.
a) Robust demand outpaces capacity addition
Indian aviation market experienced a robust annual growth of 22% in domestic
passengers and 7% in international passengers for Financial Year 2015-16. The
industry wide load factors remained at a healthy 83% for domestic and 79% for
international operations in Financial Year 2015-16. During the Financial Year
2015-16, demand clearly outpaced supply as capacity measured by ASKs grew
at 16% for domestic and 7% for international operations. (Source: DGCA
website, data for scheduled Indian carriers)
b) Increased focus on Aviation by Government of India
The National Civil Aviation Policy 2016 was cleared by the Indian Cabinet in
June 2016 with following objectives.
– Establish an integrated eco-system which will lead to significant growth of
civil aviation sector, which in turn would promote tourism, increase
employment and lead to a balanced regional growth.
– Ensure safety, security and sustainability of aviation sector through the use of
technology and effective monitoring.
– Enhance regional connectivity through fiscal support and infrastructure
development.

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– Enhance ease of doing business through deregulation, simplified procedures
and e-governance.
– Promote the entire aviation sector chain in a harmonized manner covering
cargo, MRO, general aviation, aerospace manufacturing and skill development.
RT
An integrated policy approach for the overall development of the Indian
Aviation Sector is a welcome step and signifies Government’s increasing focus
at promoting the sector in a viable manner. This establishes the fact that the
Aviation is being recognized as an industry that can foster economic
development.
As shown in Fig1, the rise in working population from 860 to 900 million and
growth in middle income class from 160 million in 2011 to 267 million in
2016, has been a force to drive the growth in the aviation sector.
GROWTH IN POPULATION - A MAJOR BOOST
In Demand for Aviation

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c) LCCs continue to dominate the domestic market
India’s domestic aviation growth story continues to be led by LCCs with LCC
market share increasing from around 40% in Financial Year 2009-10 to around
65% in Financial Year 2015-16.
Growth in Airports Passenger Traffic:
India is witnessing a substantial growth in passenger traffic in the major
Airports over the last 1 year as shown in the Table 1 and Fig. 1
Airports Passenger Traffic (in million)
FY 16 FY 17
Delhi 48 52.5
Mumbai 41.7 41.4
Chennai 15.2 16.7
Kolkata 12.4 14.35
Bangaluru 19 21.1
Hyderabad 12.4 13.79

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Passenger Traffic shows a growth of more between 10% and 15% in every
Airport during the year one year period 2015-16 and 2016-17, Except for
Mumbai which shows a decline.
A quick glance at the Fig 1 reveals that Airlines-growth in the number of
Domestic passengers is around 21.58% during 1015-16 with major airlines like
Alliance, Jet Airways, Indigo and Air Asia.
As indicated in the Fig 2 there are 6 major Airline Operators in India, Air
India, Spice jet, Indigo, Go Air, Jet Airways and Jet Lite . Air India belongs to
the public sector while other operators are in the private sector.

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Fig. 2
In the year 2015-16, both ASK*
and RPK*
in the domestic market registered a
positive growth compared to the previous year. The Passenger Load Factor in
the domestic market, which fell from 74.6% in 2012-13 to 73.3% in 2013-14,
went upto 82.09% in 2015-16 after rising to 79% in 2014-15. Fig. 3 shows a
clear picture of the Passenger load factor during the years.
ASK is calculated as the sum of products obtained by multiplying the total
number of seats that are available in each flight by the flight stage distance.
RPK is calculated as the sum of the product obtained by multiplying the
number of revenue passengers carried on each flight stage by the stage
distance.

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Fig. 3
Fig. 4
In the year 2015-16, domestic market experienced expansion in capacity as
well as demand which is evident from the Fig. 4 as both RPK and ASK
witnessed positive growth in all the months as compared to the corresponding

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Months in the previous year. Also in most months YoY growth in RPK
exceeded the YoY growth in ASK implying an improvement in the passenger
load factor and hence efficiency except for the months of September,
December and February.
In terms of Passenger Load Factor (PLF), a measure of capacity
utilisation of airlines, for scheduled domestic operations, Spice Jet registered
the highest PLF of 92% followed by Indigo (841%), Go Air (83.7%). Spice jet
also topped the position in terms of scheduled international operations with a
PLF of 85.4% followed by JetAirways (83.7%) and Indigo 82.8%).
Fig. 5

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A higher PLF implies that and airline is successful in selling available seats.
However, a higher PLF may not result in higher operating profit. When PLF is
less than break-even load factor, the airline in question is running losses.
Evidently, in the year 2014-15, only Air India Express, Indigo and Go Air were
operating at a PLF higher than break-even load factor (BELF). Fig 6 shows the
comparison between PLF and BELF.
Fig. 6
Fig 6 shows the decomposition of the costs of airline industry. While
decomposing the airline industry cost structure, it can be seen that Fuel Cost
accounts for 38.5% of the Operating Cost of Indian aviation industry followed
by General Administrative Costs (13.5%), Rental of Flight Equipment (11%)
and User charges (including landing and associated airport charges and Air
Navigation charges (7.6%).

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Fig. 7
The cost comparison was undertaken before and after adjusting Operating
Cost to Average Stage Length. Because of high fixed cost of airlines unit cost
of airlines unit cost increases. Hence a stage length adjustment is necessary for
fairer comparison. In the year 2014-15, in terms of cost efficiency of airlines,
Air India Express had the least operating cost (adjusted to the stage length) per
ASK, followed by Indigo. This has been graphically represented in Fig. 7
Fig. 8
Fig. 8 shows the Passenger yield. Passenger yield is a measure of average fare
paid per passenger km flown, calculated by divided Passenger Revenue by

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Revenue Passenger kms. In the year 2014-15, Air India Express had the
lowest passenger yield followed by Air Asia and Spice Jet.
Fig. 9

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DOMESTIC SCHEDULED SERVICES (2015-16) -(2008-09)
Fig. 10
Fig. 10 shows that there is linear relation between Weight Load Factor (WLF),
Average Speed of Aircraft (ASA). The Speed of Aircraft increases when the
Weight load factor declines. Improvement in Average Stage per Distance
flown per Aircraft Departure (ASD) reduces the operational cost of airlines due
as the high element of fixed cost gets reduced per passenger km.

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COMPANY PROFILE
INTER-GLOBE AVIATION LIMITED (INDIGO AIRLINES)
The Company was originally incorporated in Lucknow as InterGlobe Aviation
Private Limited, a private limited company, under the Companies Act, 1956 on
January 13, 2004 with the Registrar of Companies, Uttar Pradesh and
Uttaranchal at Kanpur. Pursuant to a special resolution of the shareholders of
the Company on June 30, 2006, the Company was converted into a public
company and the name of the Company was changed to "InterGlobe Aviation
Limited" subsequent to which, a fresh certificate of incorporation was issued
by the Registrar of Companies, National Capital Territory of Delhi and
Haryana on August 11, 2006. the registered office was changed from the state
of Uttar Pradesh to the National Capital Territory of Delhi on September 6,
2004 after the alteration was confirmed by the Company Law Board vide order
dated September 1, 2004. the registered office was further changed within the
National Capital Territory of Delhi from 66, Janpath, New Delhi – 110 001,
India to Central Wing, Ground Floor, Thapar House, 124, Janpath, New Delhi
– 110 001,India on October 1, 2006.
Indigo is a low-cost airline headquartered at Gurugram, Haryana, India. It is
the largest airline in India by passengers carried and fleet size, with a 41.2%
market share as of May 2017. It is also the largest individual Asian low-cost
carrier in terms of jet fleet size and passengers carried, and the eighth largest
carrier in Asia with over 41 million passengers carried in 2016. The airline
operates to 46 destinations both domestic and international. It has its primary
hub at Indira Gandhi International Airport, Delhi.

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The airline was founded as a private company, by Rahul Bhatia of Inter-Globe
Enterprises; and Rakesh Gangwal, a United States-based expatriate Indian; in
2006. It took delivery of its first aircraft in July 2006 and commenced
operations a month later. The airline became the largest Indian carrier in
passenger market share in 2012. The company went public in November 2015.
HISTORY OF INTERGLOBE AVIATION:
IndiGo was founded in 2006 as a private company by Rahul Bhatia of Inter-
Globe Enterprises and Rakesh Gangwal, a United States-based NRI.
InterGlobe had a 51.12% stake in IndiGo and 47.88% was held by Gangwal's
Virginia-based company Caelum Investments. IndiGo placed a firm order for
100 Airbus A320-200 aircraft in June 2005 with plans to begin operations in
mid-2006. IndiGo took delivery of its first Airbus aircraft on 28 July 2006,
nearly one year after placing the order. It commenced operations on 4 August
2006 with a service from New Delhi to Imphalvia Guwahati. By the end of
2006 the airline had six aircraft and nine more aircraft were acquired in 2007.
In December 2010, IndiGo replaced state-run carrier Air India as the third
largest airline in India, behind Kingfisher Airlines and Jet Airways with a
passenger market share of 17.3%.
In 2011, IndiGo placed an order for 180 Airbus A320 aircraft in a deal worth
US$15 billion. In January 2011, after completing five years of operations, the
airline got permission to launch international flights. The airline launched
international services in September 2011. In December 2011, the DGCA
expressed reservations that the rapid expansion could impact passenger safety.
In February 2012, IndiGo took delivery of its 50th aircraft, less than six years
after it began operations in 2006. For the quarter ending March 2012, IndiGo
was the most profitable airline in India and became the second largest airline in
India in terms of passenger market share. On 17 August 2012, IndiGo became

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the largest airline in India in terms of market share surpassing Jet Airways, six
years after commencing operations.
In January 2013, IndiGo was the second-fastest-growing low-cost carrier in
Asia behind Indonesian airline Lion Air. In February 2013, following the
announcement of the civil aviation ministry that it would allow IndiGo to take
delivery of only five aircraft that year, the airline planned to introduce low-cost
regional flights by setting up a subsidiary. Later, IndiGo announced that it
planned to seek permission from the ministry to acquire four more aircraft,
therefore taking delivery of nine aircraft in 2013. As of March 2014, IndiGo is
the second-largest low-cost carrier in Asia in terms of seats flown.
In August 2015, IndiGo placed an order of 250 Airbus A320neo aircraft worth
$27 billion, making it the largest single order ever in Airbus history. IndiGo
announced anRs.3, 200crore (US$500 million) initial public offering on 19
October 2015 which opened on 27 October 2015.

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MAJOR EVENTS OF INTER-GLOBE AVIATION:

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AWARDS AND ACHIEVEMENTS OF INTER-GLOBE AVIATION:

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FINANCIAL ANALYSIS AND
INTERPETATION

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FINANCIAL ANALYSIS
PROFIT AND LOSS ACCOUNT/ INCOME STATEMENT:
 An income statement is a financial statement that measures a company's
financial performance over a specific accounting period.
 Financial performance is assessed by giving a summary of how the
business incurs its revenues and expenses through both operating and
non-operating activities.
 Also known as ‘Profit & Loss Account’ or statement of revenue and
expenses.
BALANCE SHEET:
A balance sheet is a financial statement that summarizes a company’s assets,
liabilities and shareholders’ equity at a specific point in time.
CASHFLOW STATEMENT:
Cash flow is the net amount of cash and cash-equivalents moving into and out
of a business. Cash flow is used to assess the quality of a company's income,
that is, how liquid it is, which can indicate whether the company is positioned
to remain solvent.

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INCOME STATEMENT OF INDIGO AIRLINES
Fig.11

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INTERPETATION:
NET SALES:
The net sales of inter globe
aviation has been increased from
Rs.5564.66 crores in 2012 to
Rs.16, 139.91crores 2016,
increased by over 2.5 times due
to increase in PLF 84.1% in fig.4.
OPERATING PROFIT:
The operating profit has increased over
five years 2012-2016. It has increased in
2016 to Rs.3005.49 crores over the
corresponding previous year 2015 by
40% approximately. It has increased in
2016 due to increased Passenger Load
Factor 84.1% in fig.4.

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DEPRECIATION:
Depreciation of Inter Globe Aviation
Ltd in the year 2012 was Rs.66.52
crores and it has increased over the
years as investment in fixed assets has
gone up subsequently during the five
years periods 2012-2016.
EBITDA:
The EBITDA of Inter Globe Aviation
over the year 2012-2016 has been
fluctuating. In the year 2016 it has
increased to Rs.3466.88 crores over
the corresponding year 2015 due to
increase in number of passenger load
factor 7,726,371 in fig 3.
PROFIT&LOSS OF THE YEAR:
The Inter-globe aviation has made a
profit over the year 2016 Rs.1989.72
crores due to increase in operating
profit.

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BALANCE SHEET OF INDIGO AIRLINES
Fig.12

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APROJECTREPORTON
INTERPETATION:
SHARECAPITAL:
The share capital of Inter Globe Aviation
has suddenly increased in 2016
Rs.360.36 crores but in 2012 -2015 it has
same proportion that Rs.34.37 crores.
RESERVE AND SERPLUS:
The reserve and surplus of inter-globe
aviation has been increase over five
year. In 2016, it has more reserve
Rs.1473.92 crores. It shows the
company was more undistributed
profit as compare to other four year.
SECURED LOAN:
Secured loan as evidence from the
graph has decreased by over Rs.600
crores in 2016 indicating that the
company has made its expansion
from internal source like generation
of profit from operating activity.

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APROJECTREPORTON
TOTAL CURRENT ASSETS:
The current assets of the inter-globe
aviation has increased over five
years. In the year 2016 it increased
Rs.7317.51 crores due to increase in
cash and bank balance and increase
in investment shown on fig.11.
TOTAL CURRENT LIABILITIES:
The total current liabilities of Inter-
Globe Aviation has increased from
2012 to 2016. In the year 2016, it
has more current liabilities i.e.
Rs8234.97 crores and in 2012 it has
less liabilities i.e. Rs.2467.62 crores.

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APROJECTREPORTON
CASHFLOW STATEMENT OF INTER-GLOBE AVIATION
Fig.13
INTERPETATION:
PROFIT BEFORE TAX:
Profit before tax of Inter-globe
aviation has fluctuated over the
years. In the year 2016 it was
Rs.2828.95 crores and the year
2012, it was Rs.74.9 crores.
NET CASH FLOW FROM OPERATING ACTIVITY:
The fluctuation occurred in the net cash
flow from operating activity. In the
year 2016, it was Rs.3099.07 crores,
due to increase in fuel cost in fig.6 in
the2012 it was Rs.895.67 crores and in
2012 it was less operating activity.

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APROJECTREPORTON
NET CASH FLOW FROM INVESTING ACTIVITY:
The net cash flow from
investing activity shows losses
over five year. In year 2014 it
was more loss that is
Rs.2913.78 crores due to
increase in purchase and sales
of fixed assets.
NET CASH USED IN FINANCING ACTIVITY:
The net cash flow in financing
activity of Inter Globe Aviation
ltd has profit in 2014 that is
Rs.1284.84cr and in 2013 it was
also profit that is Rs.36.58cr.
Other three years it occurred loss.

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APROJECTREPORTON
RATIO ANALYSIS

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APROJECTREPORTON
COMPANY PROFILE
SPICEJET LIMITED
SpiceJet is a low-cost airline headquartered in Gurugram, India. It is the third
largest airline in the country by number of domestic passengers carried, with a
market share of 14.2% as of July 2017. The airline operates 312 daily flights to
55 destinations, including 45 Indian and 10 international destinations from its
hubs at Delhi, Kolkata and Hyderabad.
Established as air taxi provider ModiLuft in 1994, the company was acquired
by Indian entrepreneur Ajay Singh in 2004 and re-christened as SpiceJet. The
airline operated its first flight in May 2005. Indian media baron Kalanidhi
Maran acquired a controlling stake in SpiceJet in June 2010 through Sun
Group which was sold back to Ajay Singh in January 2015. The airline
operates a fleet of Boeing 737 and Bombardier Dash aircraft.
HISTORY OF SPICEJET LIMITED:
1984–1996: ModiLuft era:
The origins of SpiceJet can be tracked back to March 1984 when the company
was established by Indian industrialist S. K. Modi to provide private air taxi
services. On 17 February 1993, the company was named as MG Express and
entered into technical partnership with the German flag carrier Lufthansa. The
airline provided passenger and cargo services under the name of Modiluff
before ceasing operations in 1996.

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APROJECTREPORTON
2005–2013: Inception and expansion:
In 2004, the company was acquired by Ajay Singh and the airline planned to
restart operations as SpiceJet following the low-cost model. SpiceJet leased
two Boeing 737-800 aircraft in 2005 and planned to order 10 new aircraft for
expansion. SpiceJet opened bookings on 18 May 2005 and the first flight was
operated between Delhi and Mumbai on 24 May 2005. By July 2008, it was
India's third-largest low-cost carrier in terms of market share after Air Deccan
and IndiGo. Indian media baron Kalanidhi Maran acquired 37.7% stake in
SpiceJet in June 2010 through Sun Group. The airline ordered 30 Boeing 737-8
aircraft worth US$2.7 billion July 2010 and a further 15 Bombardier Q4 Dash
short-haul aircraft worth US$446 million in December 2010.
In 2012, SpiceJet suffered a loss of over ₹390 million (US$6.1 million) owing
to increase in global crude prices. On 9 January 2012, the Directorate General
of Civil Aviation, reported that several airlines in India, including SpiceJet,
have not maintained crucial data for the flight operations quality assurance.
The Bombay Stock Exchange announced that ever since June 2011, SpiceJet
had been suffering losses. In 2012, Kalanidhi Maran increased his stake in the
airline by investing ₹1 billion (US$16 million) in the airline. The airline
returned to profits at the end of the same year. In 2013, SpiceJet entered into an
inter airline pact with Tigerair on 16 December 2013 which was later scrapped
in January 2015.
2014–present: Downturn and recovery
In July 2014, SpiceJet announced up to 50 percent discount in air fares due to
competition. In August 2014, SpiceJet became the second largest carrier in
terms of passenger market share after IndiGo, beating full service carrier Jet

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APROJECTREPORTON
Airways for the first time in its operational history. In December 2014,
financial losses and unpaid dues led to cancellation of many domestic flights.
Directorate General of Civil Aviation issued a warning to the airline over non-
payment of salaries and dues and the carrier was put on cash-and-carry mode
by airport operators, meaning the airline can use the airport facilities only upon
prior payment of money. On 17 December 2014, all flights were grounded
after oil companies refused to refuel its planes due to non-payment of dues
with flights resuming the next day. Flights resumed the next day. In January
2015, the Sun group sold its entire shareholding and transferred control to Ajay
Singh.
In 2015, SpiceJet’s operations experienced a significant turnaround with 93
percent of available seats on flights being filled and only 0.13 percent of
scheduled flights canceled each month. The airline became profitable in the
first three consecutive quarters of the year 2015, in contrast to the previous five
quarters when it suffered losses. As of November 2016, it is the fourth largest
airline in India in terms of passengers carried with a 12.8 percent market share.
Spicejet's order of 100 Boeing planes found mention in President Donald
trump's meeting with Prime Minister Modi during his trip to Washington in
June 2017. In recognition of this order, US Vice president Mike Pence
expressed a desire to visit the offices of Spicejet when he visits India later in
2017.

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APROJECTREPORTON
FINANCIAL ANALYSIS AND
INTERPRETATION

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APROJECTREPORTON
INCOME STATEMENT OF SPICEJET LTD
Fig.14

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APROJECTREPORTON
INTERPRETATION:
NET SALES:
The net sales of Spicejet ltd has been
fluctuated over five years. In the year
2014 it has more sales i.e. Rs.6304.23
crores because of increase in passenger
load factor (PLF) and increase in BELF
in 2014-15 as shown in fig.6.
OPERATING PROFIT:
The operating profit of spicejet has
fluctuated over the five year periods.
In 2016 it has Rs.432.16 crores due
to increase in domestic operations of
PLF of 92% shown in fig.5.
DEPRECIATION:
The depreciation has fluctuated from
2012 to 2016 due to fluctuation in
fixed assets. In the year 2014 it has
increased Rs.148.26 crores due to
increase in fixed assets in shown on
Fig.15.

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APROJECTREPORTON
EBIT:
The EBIT has been fluctuating over
five years. In 2016 it has increased
positively Rs.443.24 crores and
other four years it occurred losses
and in 2014 it occurred more losses
that is Rs.905.09 crores.
PROFIT AND LOSS OF THE YEAR:
The profit and loss of spicejet
ltd occurred profit in 2016 that
is Rs.343.50 crores and other
four years it had loss and in
2014 it has more loss that is
Rs.1003.24 crores due to
increase in PLF 92% in 2016
shown in fig.4.

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APROJECTREPORTON
BALANCE SHEET OF SPICEJET LTD
Fig.15

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APROJECTREPORTON
INTERPETATION:
SHARE CAPITAL:
The share capital of spicejet.
Ltd has increased. In 2016 it
was Rs.1178.54crores, in
2015 it was Rs.949.95crores,
in 2014 it was
Rs.568.59crores and in year
2012 it was Rs.441.45crores.
RESERVE AND SURPLUS:
The reserve and surplus of
spicejet.ltd has fluctuated over
five years. In the year 2016 it
was Rs. (1810.16) crores, 2015 it
was Rs. (2214.47), in 2012 it
was Rs. (588.68) crores.
SECURED LOAN:
Secured loan of Spicejet ltd as
evidence from the graph has
decreased by over Rs.196.16 crores
in 2016 indicating that the company
has made its expansion from
internal sources like generating of
profit from operating activity.

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APROJECTREPORTON
TOTAL LIABILITIES:
The total liabilities of spicejet
ltd has fluctuated over five
years. In the year 2016 it has
Rs.397.1 crores and in the year
2013 it has more liabilities that
is Rs.1453.67 crores.
NET CURRENT ASSETS:
The net current assets of
spicejet ltd has fluctuated over
the years. In the year 2013 it
has increased Rs.1276.28 due
to increase in cash and bank
balance and increase in
inventories. In the year 2016 it
has Rs.1081.69 crores.

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APROJECTREPORTON
CASH FLOW STATEMENT OF SPICEJET
Fig.16
INTERPRETATION
PROFIT BEFORE TAX:
The profit before tax of spicejet
ltd has fluctuated over the year. In
the year 2016 it was Rs.343.5
crores profit and other four year it
occurred losses and in 2014 it was
more loss Rs.1003.24
NET CASH FLOW FROM OPERATING ACTIVITY:
The net cash flow from operating
activity has fluctuated over the years.
In the year 2016 it has increased
Rs.635.38 crores due to increase in fuel
cost and general administrative cost.

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APROJECTREPORTON
NET CASHFLOW FROM INVESTING ACTIVITY:
The net cash flow from investing
activity has increased Rs.24.07crores
due to purchase of fixed assets. In the
year 2016, it has Rs. (175.17) crores.
NET CASHFLOW FROM FINANCING ACTIVITY:
The net cash flow from financing
activity has occurred profit in three
years but in 2012 it was more profit
that is Rs.977.38cr and other two
years it had loss.

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APROJECTREPORTON
RATIO ANALYSIS:

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APROJECTREPORTON
FINDINGS & RECOMMENDATIONS:
India has very high potential in the aviation Industry but still it is going
through tough time. Indian aviation Industry has high growth rate as disposable
income of the people is growing and most of the people tending to upgrade
their lifestyle.
Airline industry in India is very competitive and price conscious. Most
of the people look for the price and very least look for the brand. There are
very few people who are loyal customers of the airlines. Also most of these are
high class business persons. People follow the promotional ads of the airline
and look for the low price carrier. Now days Spice Jet is offering tickets at very
low price. They are promoting their campaign as “Less than train fare”.
To give lowest price possible these airline companies are looking to cut
the costs. Along with these they have to function at very less margin.
Following are recommendation to improve sustainability of the airline
business.
1. Government Policies: Government interventions are one of the common
threats for the private players. They need some liberty.
2. Government Tax: Government of India is imposing many taxes on the
airline industry. This directly results into increase in the ticket price,.
Considering airline is one of the basic transportation systems,
government has to revise their taxation policy.
3. Fuel is highly charged because of the taxes on it. Very few companies
such as IOCL, BPCL are providing fuel to aviation companies. These oil
companies charge it high due to taxes. Government needs to subsidies
fuel for the airline industry.
4. There is high potential in Tier II and Tier III cities. Airline companies
have to explore these options for better revenue.
5. Indian consumer is addicted for the promotions. Airline companies have
to update their promotional and marketing strategies time to time.

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APROJECTREPORTON
CONCLUSION:
After our in-depth analysis, we have determined that the airline industry
is a very unattractive industry to enter into. The current ratio between airlines
and the people willing to travel is very balanced so it would not be profitable
for a new company to enter into the market. The initial capital needed, as well
as the customer base, is very hard to achieve when the industry itself is in the
maturity stage. It is for these reasons that the industry is labeled as unattractive.
The Indian Aviation Sector has witnessed tremendous growth in the
recent past which is driven by sound demographic, macroeconomic,
government aided reforms & market dynamics. Almost 35 % of exports from
India & 97% foreign tourists to India arrive by Air each year. Aviation sector
has undergone a major facelift in past 5-6 years. According to Union Budget
2012, with a compound annual growth rate of 18 percent, today Indian
Aviation Industry ranks ninth in the global civil aviation market. It has been
estimated that India would need 1032 new aircrafts worth around US $ 138
billion by 2028. It has been forecasted that the air traffic in India will continue
to grow at the rate of 8 – 10% over the next 10 years.
A major hurdle in this growth of Indian aviation industry is the shortage
of qualified and experienced commercial pilots. Though India has sufficient
number of commercial pilots, they are either not type-rated or do not have
required flying experience. However, the airlines can still recruit these pilots
and train them on their aircrafts. But this becomes a costly affair. And even if
an airline invests in such pilots, it may not be able to retain them for a longer
period which means loss to the airline.

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APROJECTREPORTON
BIBLIOGRAPHY & REFERENCES:
https://www.ibef.org/industry/indian-aviation.aspx
http://www.aviationindia.net/
https://en.wikipedia.org/wiki/Aviation_in_India
https://www.interglobe.com
http://www.spicejet.com
https://en.wikipedia.org/wiki/IndiGo
https://en.wikipedia.org/wiki/SpiceJet
http://economictimes.indiatimes.com/interglobe-aviation-ltd/stocks/companyid-60145.cms
http://economictimes.indiatimes.com/spicejet-ltd/stocks/companyid-7876.cms
http://dgca.nic.in
http://www.airportsindia.org.in/hindi/hindimain.jsp
https://centreforaviation.com/data/profile

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APROJECTREPORTON
APPENDIX

ANNEXURE-1:
INCOME STATEMENT ANALYSIS OF INDIGO:
INCOME STATEMENT
INCOME: Mar'16 Mar'15 Mar'14 Mar'13 Mar'12 Mar'16 Mar'15 Mar'14 Mar'13 Mar'12 Mar'16 Mar'15 Mar'14 Mar'13 Mar'12
Sales Turnover 97.22% 97.32% 97.24% 97.49% 97.48% 15.90% 25.27% 20.79% 65.39% 5564.66 290.04% 250.25% 199.77% 165.39% 100.00%
Excise Duty 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00 0.00% 0.00% 0.00% 0.00% 100.00%
NET SALES 97.22% 97.32% 97.24% 97.49% 97.48% 15.90% 25.27% 20.79% 65.39% 5564.66 290.04% 250.25% 199.77% 165.39% 100.00%
Other Income 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00 0.00% 0.00% 0.00% 0.00% 100.00%
TOTAL INCOME 100.00% 100.00% 100.00% 100.00% 100.00% 16.02% 25.17% 21.10% 65.37% 5708.62 290.81% 250.66% 200.26% 165.37% 100.00%
Manufacturing Expenses 28.79% 40.17% 48.23% 45.68% 50.34% 16.86% 4.26% 27.84% 50.08% 2873.59 166.32% 200.05% 191.86% 150.08% 100.00%
Material Consumed 1.37% 0.55% 0.52% 0.57% 0.59% 188.67% 32.89% 9.18% 61.58% 33.50 676.78% 234.45% 176.42% 161.58% 100.00%
Personal Expenses 10.78% 8.31% 8.05% 7.31% 8.97% 50.58% 29.13% 33.33% 34.89% 511.86 349.69% 232.23% 179.84% 134.89% 100.00%
Selling Expenses 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00 0.00% 0.00% 0.00% 0.00% 100.00%
Administrative Expenses 38.18% 35.22% 36.01% 34.45% 36.73% 25.76% 22.42% 26.59% 55.11% 2096.82 302.29% 240.36% 196.34% 155.11% 100.00%
Expenses Capitalised 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00 0.00% 0.00% 0.00% 0.00% 100.00%
Provisions Made 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00 0.00% 0.00% 0.00% 0.00% 100.00%
TOTAL EXPENDITURE 79.12% 84.25% 92.81% 88.02% 96.62% 8.95% 13.63% 27.68% 50.65% 5515.77 238.12% 218.57% 192.36% 150.65% 100.00%
Operating Profit 18.10% 13.07% 4.43% 9.47% 0.86% 60.75% 269.04% 43.31% 1727.84% 48.89 6147.45% 3824.28% 1036.27% 1827.84% 100.00%
EBITDA 20.88% 15.75% 7.19% 11.98% 3.38% 53.84% 174.09% 27.29% 486.33% 192.85 1797.71% 1168.52% 426.33% 586.33% 100.00%
Depreciation 3.03% 2.11% 1.98% 0.91% 1.17% 66.47% 33.72% 163.97% 28.71% 66.52 756.28% 454.31% 339.76% 128.71% 100.00%
Other Write-offs 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00 0.00% 0.00% 0.00% 0.00% 100.00%
EBIT 17.85% 13.64% 5.21% 11.07% 2.21% 51.89% 227.31% 42.96% 727.29% 126.33 2346.08% 1544.59% 471.91% 827.29% 100.00%
Interest 0.81% 0.81% 1.07% 0.61% 0.90% 16.72% 5.75% 112.08% 12.39% 51.43 262.20% 224.64% 238.34% 112.39% 100.00%
EBT 17.04% 12.83% 4.14% 10.46% 1.31% 54.10% 287.63% 52.03% 1218.18% 74.90 3776.97% 2450.92% 632.28% 1318.18% 100.00%
Taxes 5.06% 3.77% 0.01% 2.16% 1.15% 55.37% -62909.30% 100.42% -410.49% -65.69 -1277.56% -822.29% 1.31% -310.49% 100.00%
Profit and Loss for the Year 11.99% 9.05% 4.15% 8.30% 2.46% 53.58% 173.08% 39.44% 457.19% 140.59 1415.26% 921.54% 337.46% 557.19% 100.00%
Non Recurring Items 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00 0.00% 0.00% 0.00% 0.00% 100.00%
Other Non Cash Adjustments 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00 0.00% 0.00% 0.00% 0.00% 100.00%
Other Adjustments 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00 0.00% 0.00% 0.00% 0.00% 100.00%
REPORTED PAT 11.99% 9.05% 4.15% 8.30% 2.46% 53.58% 173.08% 39.44% 457.19% 140.59 1415.26% 921.54% 337.46% 557.19% 100.00%
0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00 0.00% 0.00% 0.00% 0.00% 100.00%
Preference Dividend 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00 0.00% 0.00% 0.00% 0.00% 100.00%
Equity Dividend 7.40% 6.07% 2.74% 4.87% 0.00% 41.57% 177.04% 31.81% 0.00% 0.00 0.00% 0.00% 0.00% 0.00% 100.00%
Equity Dividend (%) 2.05% 19.77% 8.93% 15.86% 0.00% 87.94% 177.04% 31.81% 0.00% 0.00 0.00% 0.00% 0.00% 0.00% 100.00%
Shares in Issue (Lakhs) 21.71% 0.02% 0.03% 0.03% 0.05% 117280.13% 0.00% 0.00% 0.00% 3.07 117380.13% 100.00% 100.00% 100.00% 100.00%
EPS - Annualised (Rs) 0.33% 294.93% 135.18% 270.30% 80.22% 99.87% 173.08% 39.43% 457.18% 4579.61 1.21% 921.51% 337.45% 557.18% 100.00%
EXPENDITURE:
KEY ITEMS
TREND ANALYSISCOMPARATIVE STATEMENTCOMMON SIZE ANALYSIS

ANNEXURE-2:
INCOME STATEMENT ANALYSIS OF SPICEJECT:
SPICEJET LTD
INCOME: Mar'16 Mar'15 Mar'14 Mar'13 Mar'12 Mar'16 Mar'15 Mar'14 Mar'13 Mar'12 Mar'16 Mar'15 Mar'14 Mar'13 Mar'12
Sales Turnover 97.53% 99.71% 120.85% 107.36% 75.59% 2.18% 17.49% 12.56% 42.03% 3943.26 129.03% 131.91% 159.87% 142.03% 100.00%
Excise Duty 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00 0.00% 0.00% 0.00% 0.00% 100.00%
NET SALES 97.53% 99.71% 120.85% 107.36% 75.59% 2.18% 17.49% 12.56% 42.03% 3943.26 129.03% 131.91% 159.87% 142.03% 100.00%
Other Income 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00 0.00% 0.00% 0.00% 0.00% 100.00%
TOTAL INCOME 100.00% 103.16% 122.65% 110.46% 77.04% 3.07% 15.89% 11.04% 43.38% 4019.11 129.80% 133.91% 159.20% 143.38% 100.00%
EXPENDITURE: 0.00% 0.00% 0.00% 0.00% 0.00 0.00% 0.00% 0.00% 0.00% 100.00%
Manufacturing Expenses 48.32% 67.82% 85.12% 69.30% 53.93% 28.75% 20.32% 22.84% 28.50% 2813.27 89.60% 125.77% 157.85% 128.50% 100.00%
Material Consumed 1.20% 1.38% 1.78% 1.27% 0.93% 13.08% 22.40% 39.99% 37.37% 48.33 129.71% 149.22% 192.30% 137.37% 100.00%
Personal Expenses 9.45% 10.30% 11.04% 10.10% 7.72% 8.30% 6.64% 9.28% 30.76% 402.87 122.33% 133.41% 142.90% 130.76% 100.00%
Selling Expenses 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00 0.00% 0.00% 0.00% 0.00% 100.00%
Administrative Expenses 30.28% 32.82% 39.22% 30.45% 24.48% 7.73% 16.33% 28.79% 24.40% 1277.16 123.68% 134.05% 160.20% 124.40% 100.00%
Expenses Capitalised 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00 0.00% 0.00% 0.00% 0.00% 100.00%
Provisions Made 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00 0.00% 0.00% 0.00% 0.00% 100.00%
TOTAL EXPENDITURE 89.25% 112.33% 137.16% 111.12% 87.06% 20.54% 18.11% 23.43% 27.64% 4541.63 102.52% 129.02% 157.55% 127.64% 100.00%
Operating Profit 8.28% 12.62% 16.32% 3.76% 11.47% -165.65% -22.67% -333.66% -67.20% -598.37 -72.22% 110.00% 142.25% 32.80% 100.00%
EBITDA 10.75% 9.16% 14.51% 0.66% 10.02% -217.35% -36.85% -2095.62% -93.40% -522.51 -107.33% 91.47% 144.85% 6.60% 100.00%
Depreciation 2.25% 2.43% 2.84% 1.60% 0.59% 7.13% 14.60% 77.45% 169.52% 31.00 379.32% 408.45% 478.26% 269.52% 100.00%
Other Write-offs 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00 0.00% 0.00% 0.00% 0.00% 100.00%
EBIT 8.50% 11.59% 17.35% 2.26% 10.61% -173.32% -33.21% -666.90% -78.68% -553.51 -80.08% 109.22% 163.52% 21.32% 100.00%
Interest 1.91% 2.76% 1.88% 2.22% 1.00% 30.68% 46.56% 15.17% 121.43% 52.26 190.83% 275.28% 187.83% 221.43% 100.00%
EBT 6.58% 14.35% 19.23% 4.48% 11.61% -145.90% -25.40% -329.21% -61.41% -605.77 -56.70% 123.55% 165.61% 38.59% 100.00%
Taxes 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00 0.00% 0.00% 0.00% 0.00% 100.00%
Profit and Loss for the Year 6.58% 14.35% 19.23% 4.48% 11.61% -145.90% -25.40% -329.21% -61.41% -605.77 -56.70% 123.55% 165.61% 38.59% 100.00%
Non Recurring Items 1.22% 1.18% 0.00% 0.82% 0.00% 3.81% 0.00% 100.00% 0.00% 0.00 0.00% 0.00% 0.00% 0.00% 100.00%
Other Non Cash Adjustments 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00 0.00% 0.00% 0.00% 0.00% 100.00%
Other Adjustments 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00 0.00% 0.00% 0.00% 0.00% 100.00%
REPORTED PAT 7.81% 13.17% 19.23% 3.66% 11.61% -159.27% -31.52% -425.04% -68.46% -605.77 -67.22% 113.42% 165.61% 31.54% 100.00%
0.00% 0.00% 0.00% 0.00% 0.00 0.00% 0.00% 0.00% 0.00% 100.00%
Preference Dividend 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00 0.00% 0.00% 0.00% 0.00% 100.00%
Equity Dividend 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00 0.00% 0.00% 0.00% 0.00% 100.00%
Equity Dividend (%) 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00 0.00% 0.00% 0.00% 0.00% 100.00%
Shares in Issue (Lakhs) 114.91% 114.91% 102.61% 92.85% 84.62% 0.00% 11.99% 10.52% 9.72% 4414.50 135.79% 135.79% 121.26% 109.72% 100.00%
EPS - Annualised (Rs) 0.13% 0.22% 0.36% 0.08% 0.26% -159.25% -38.85% -375.63% -71.28% -13.72 -49.49% 83.53% 136.59% 28.72% 100.00%
KEY ITEMS
COMMON SIZE ANALYSIS COMPARATIVE ANALYSIS TREND ANALYSIS

ANNEXURE-3:
BALANCE SHEET ANALYSIS OF INDIGO:
BALANCE SHEET
Particulars Mar'16 Mar'15 Mar'14 Mar'13 Mar'12 Mar'16 Mar'15 Mar'14 Mar'13 Mar'12 Mar'16 Mar'15 Mar'14 Mar'13 Mar'12
Liabilities
Share Capital 7.53% 0.86% 0.98% 1.65% 2.91% 948.47% 0 0 0 34.37 1048.47% 100.00% 100.00% 100.00% 100.00%
Reserves & Surplus 30.81% 9.76% 11.06% 16.99% 17.72% 276.14% 1.16% 9.22% 69.74% 208.96 705.36% 187.52% 185.38% 169.74% 100.00%
Net Worth 38.34% 10.62% 12.04% 18.63% 20.63% 330.36% 1.06% 8.40% 59.89% 243.33 753.82% 175.16% 173.32% 159.89% 100.00%
Secured Loan 61.66% 89.38% 87.96% 81.37% 79.37% 17.79% 16.48% 81.35% 81.47% 936.11 315.12% 383.33% 329.10% 181.47% 100.00%
Unsecured Loan 0 0 0 0 0 0 0 0 0 0 0 0 0 0 100.00%
TOTAL LIABILITIES 100.00% 100.00% 100.00% 100.00% 100.00% 19.17% 14.62% 67.76% 77.02% 1179.44 405.63% 340.38% 296.96% 177.02% 100.00%
Gross Block 125.80% 121.46% 112.95% 84.51% 75.12% 23.42% 23.26% 124.20% 99.15% 886.01 679.25% 550.34% 446.49% 199.15% 100.00%
(-) Acc. Depreciation 27.65% 0 0 0 0 0 0 0 0 0 0 0 0 0 100.00%
Net Block 98.15% 121.46% 112.95% 84.51% 75.12% 3.70% 23.26% 124.20% 99.15% 886.01 529.96% 550.34% 446.49% 199.15% 100.00%
Capital Work in Progress 0.67% 0.01% 0 0.33% 0 7002.22% 0 100.00% 0 0 0 0 0 0 100.00%
Investments 20.36% 12.87% 36.30% 54.52% 44.38% 88.49% 59.36% 11.70% 117.49% 523.42 186.11% 98.74% 242.93% 217.49% 100.00%
Inventories 2.65% 3.25% 1.92% 2.50% 3.17% 2.93% 94.01% 28.74% 39.80% 37.39 338.91% 349.16% 179.97% 139.80% 100.00%
Sundry Debtors 3.28% 2.60% 2.54% 3.28% 3.30% 50.27% 17.31% 30.06% 76.05% 38.92 403.67% 268.63% 228.98% 176.05% 100.00%
Cash and Bank 77.73% 49.80% 31.45% 64.21% 110.97% 85.99% 81.51% 17.83% 2.43% 1308.83 284.12% 152.76% 84.16% 102.43% 100.00%
Loans and Advances 69.29% 78.36% 74.75% 70.96% 72.28% 5.37% 20.17% 76.72% 73.77% 852.5 388.86% 369.03% 307.10% 173.77% 100.00%
Total Current Assets 152.95% 134.02% 110.66% 140.95% 189.72% 36.00% 38.82% 31.71% 31.51% 2237.63 327.02% 240.45% 173.22% 131.51% 100.00%
Current Liabilities 156.05% 163.25% 145.60% 177.73% 206.30% 13.91% 28.52% 37.43% 52.51% 2433.14 306.83% 269.36% 209.59% 152.51% 100.00%
Provisions 16.08% 5.11% 14.31% 2.58% 2.92% 275.05% 59.08% 829.27% 56.47% 34.48 2231.38% 594.95% 1454.00% 156.47% 100.00%
Total Current Liabilities 172.13% 168.36% 159.91% 180.32% 209.22% 21.83% 20.68% 48.78% 52.56% 2467.62 333.72% 273.91% 226.98% 152.56% 100.00%
NET CURRENT ASSETS 19.18% 34.34% 49.25% 39.36% 19.50% 33.45% 20.08% 109.89% 257.35% -229.99 398.91% 599.45% 750.04% 357.35% 100.00%
Misc. Expenses 0 0 0 0 0 0 0 0 0 0 0 0 0 0 100.00%
TOTAL ASSETS(A+B+C+D+E) 100.00% 100.00% 100.00% 100.00% 100.00% 19.17% 14.62% 67.76% 77.02% 1179.44 405.63% 340.38% 296.96% 177.02% 100.00%
TREND ANALYSIS
InterGlobe Aviation
Assets
COMMON SIZE ANALYSIS COMPARATIVE ANALYSIS

ANNEXURE-4:
BALANCE SHEET ANALYSIS OF SPICEJECT:
Particulars Mar'16 Mar'15 Mar'14 Mar'13 Mar'12 Mar'16 Mar'15 Mar'14 Mar'13 Mar'12 Mar'16 Mar'15 Mar'14 Mar'13 Mar'12
Liabilities
Share Capital 296.79% 617.09% 114.45% 34.25% 62.33% 24.06% 67.07% 14.19% 12.79% 441.45 266.97% 215.19% 128.80% 112.79% 100.00%
Reserves & Surplus 455.84% 1438.53% 319.65% 49.69% 83.12% 18.26% 39.44% 119.84% 22.71% -588.68 307.49% 376.18% 269.77% 122.71% 100.00%
Net Worth 159.06% 821.44% 205.21% 15.44% 20.79% 50.05% 24.04% 354.23% 52.44% -147.23 429.00% 858.87% 692.44% 152.44% 100.00%
Secured Loan 232.62% 727.47% 248.84% 4.94% 12.52% 17.51% 9.42% 1622.80% 19.05% 88.65 1042.00% 1263.25% 1394.56% 80.95% 100.00%
Unsecured Loan 26.44% 193.97% 56.36% 110.50% 108.27% 64.83% 6.64% 82.57% 109.49% 766.78 13.69% 38.94% 36.52% 209.49% 100.00%
TOTAL LIABILITIES 100.00% 100.00% 100.00% 100.00% 100.00% 157.96% 69.01% 65.82% 105.26% 708.2 56.07% 21.74% 70.15% 205.26% 100.00%
Gross Block 521.79% 1358.84% 433.71% 132.87% 127.94% 0.94% 2.92% 11.56% 113.16% 906.1 228.68% 230.86% 237.80% 213.16% 100.00%
(-) Acc. Depreciation 118.35% 245.54% 55.96% 9.49% 7.89% 24.33% 35.95% 101.60% 146.75% 55.89 840.85% 676.29% 497.44% 246.75% 100.00%
Net Block 403.45% 1113.31% 377.74% 123.38% 120.05% 6.52% 8.68% 4.64% 110.95% 850.21 188.44% 201.58% 220.73% 210.95% 100.00%
Capital Work in Progress 0 0 0.15% 0.08% 0.01% 0 100.00% 36.36% 1916.67% 0.06 0 0 1283.33% 2016.67% 100.00%
Investments 5.04% 0 0 0 0 0 0 0 0 0 0 0 0 0 100.00%
Inventories 16.76% 29.31% 9.09% 3.14% 4.47% 47.50% 0.07% 1.03% 44.14% 31.65 210.27% 142.56% 142.65% 144.14% 100.00%
Sundry Debtors 10.92% 79.04% 31.35% 7.23% 2.88% 64.36% 21.87% 48.28% 414.60% 20.41 212.49% 596.18% 763.06% 514.60% 100.00%
Cash and Bank 27.32% 15.32% 1.02% 14.93% 33.31% 360.09% 366.01% 97.67% 7.98% 235.91 45.99% 10.00% 2.14% 92.02% 100.00%
Loans and Advances 217.40% 456.28% 171.31% 62.50% 117.49% 22.91% 17.47% 6.32% 9.19% 832.09 103.75% 84.41% 102.28% 109.19% 100.00%
TotalCurrent Assets 272.40% 579.94% 212.76% 87.80% 158.16% 21.16% 15.54% 17.18% 13.95% 1120.06 96.57% 79.71% 94.37% 113.95% 100.00%
Current Liabilities 417.04% 1365.51% 486.30% 110.08% 176.09% 21.22% 12.99% 50.98% 28.32% 1247.1 132.79% 168.56% 193.73% 128.32% 100.00%
Provisions 163.84% 227.74% 4.36% 1.18% 2.12% 85.58% 1517.81% 26.73% 13.70% 15.04 4325.93% 2330.98% 144.08% 113.70% 100.00%
TotalCurrent Liabilities 580.88% 1593.25% 490.66% 111.26% 178.22% 5.95% 0.61% 50.72% 28.14% 1262.14 182.76% 194.32% 193.14% 128.14% 100.00%
NET CURRENT ASSETS 308.48% 1013.31% 277.90% 23.46% 20.06% 21.47% 12.98% 304.81% 140.06% -142.07 862.24% 1097.97% 971.80% 240.06% 100.00%
Misc. Expenses 0 0 0 0 0 0 0 0 0 0 0 0 0 0 100.00%
TOTAL ASSETS(A+B+C+D+E) 100.00% 100.00% 100.00% 100.00% 100.00% 157.96% 69.01% 65.82% 105.26% 708.2 56.07% 21.74% 70.15% 205.26% 100.00%
SPICEJET LTD. Rs
Assets
COMMON SIZE ANALYSIS COMPARATIVE ANALYSIS TREND ANALYSIS

A Study on Aviation Industry (InterGlobe Aviation Ltd & Spicejet Ltd)

A Study on Aviation Industry (InterGlobe Aviation Ltd & Spicejet Ltd)

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