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GoAir's Rs 3,600-crore IPO: Here are the key financial metrics of the company
On May 13, the airline rebranded itself as Go First, as part of the preparations for the listing
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![Wadia group-owned Go Airlines has filed the Draft Red Herring Prospectus (DRHP) for a Rs 3,600 crore initial public offering (IPO). On May 13, the airline rebranded itself as Go First, as part of the preparations for the listing amid a rocky period for the aviation sector due to the pandemic. "We are in the process of transitioning all our operations under this new brand. We believe that our new brand will better reflect our customer acquisition strategy of targeting young Indian leisure and MSME travellers which is our largest customer base," GoAir said. Airline's revenue from the operation was on the rise but the COVID-19 pandemic has shaken it, and it further impacted their bottom line numbers which were already in losses. Here are the key metrics of the GoAir business presented from the company's DRHP.](https://images.moneycontrol.com/static-mcnews/2021/04/financial_services4.jpg "Wadia group-owned Go Airlines has filed the Draft Red Herring Prospectus (DRHP) for a Rs 3,600 crore initial public offering (IPO). On May 13, the airline rebranded itself as Go First, as part of the preparations for the listing amid a rocky period for the aviation sector due to the pandemic. "We are in the process of transitioning all our operations under this new brand. We believe that our new brand will better reflect our customer acquisition strategy of targeting young Indian leisure and MSME travellers which is our largest customer base," GoAir said. Airline's revenue from the operation was on the rise but the COVID-19 pandemic has shaken it, and it further impacted their bottom line numbers which were already in losses. Here are the key metrics of the GoAir business presented from the company's DRHP.")
Wadia group-owned Go Airlines has filed the Draft Red Herring Prospectus (DRHP) for a Rs 3,600 crore initial public offering (IPO). On May 13, the airline rebranded itself as Go First, as part of the preparations for the listing amid a rocky period for the aviation sector due to the pandemic. Here are the key metrics of the GoAir's business, as presented by the company in its DRHP:
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The company derives its operating revenue primarily from passenger revenue and the rest from ancillary products and services. Revenue from the operations has grown at a CAGR of around 25 percent from fiscal 2018 to 2020. However, the rising revenues were hit due to the COVID-19 jolt in FY21. The novel coronavirus pandemic has had an adverse impact on our business, operating results, financial condition, and liquidity, and the duration and spread of the pandemic could result in an additional adverse impact on our business, said the company's DRHP.
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![Data shows that the company has not seen its breakeven point in the last four fiscal years. The COVID-19 pandemic further affected the business and financial results. "We may be unable to successfully implement our ultra-low-cost carrier (or ULCC) model, due to a number of factors outside our control, including the continuing impact of COVID-19." said the company's DRHP.](https://images.moneycontrol.com/static-mcnews/2021/05/Go-Airline-Losses-1405_002.jpg "Data shows that the company has not seen its breakeven point in the last four fiscal years. The COVID-19 pandemic further affected the business and financial results. "We may be unable to successfully implement our ultra-low-cost carrier (or ULCC) model, due to a number of factors outside our control, including the continuing impact of COVID-19." said the company's DRHP.")
Data shows that the company has not seen its breakeven point in the last four fiscal years. The COVID-19 pandemic further affected the business and financial results. "We may be unable to successfully implement our ultra-low-cost carrier (or ULCC) model, due to a number of factors outside our control, including the continuing impact of COVID-19." said the company's DRHP.
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![Go Air's net cash and cash equivalents' value slipped further in FY21. Even cash flow from operations has seen a huge fall to Rs 232 crore in 9M-FY21 from Rs 1738 crore in FY20. "We have been and continue to be in payment default under several of our aircraft lease agreements. Such defaults may lead our lessors to initiate legal or enforcement proceedings against us, enforce bank guarantees, appropriate security deposits or repossess our aircraft, which will adversely affect our business, financial condition and results of operations. Further, we were also in default under one of our loan agreements (in relation to which we have entered into an agreement to reschedule the principal repayments), said the company's DRHP.](https://images.moneycontrol.com/static-mcnews/2021/05/Go-Airline-Cash-Flow-1405_004.jpg "Go Air's net cash and cash equivalents' value slipped further in FY21. Even cash flow from operations has seen a huge fall to Rs 232 crore in 9M-FY21 from Rs 1738 crore in FY20. "We have been and continue to be in payment default under several of our aircraft lease agreements. Such defaults may lead our lessors to initiate legal or enforcement proceedings against us, enforce bank guarantees, appropriate security deposits or repossess our aircraft, which will adversely affect our business, financial condition and results of operations. Further, we were also in default under one of our loan agreements (in relation to which we have entered into an agreement to reschedule the principal repayments), said the company's DRHP.")
Go Air's net cash and cash equivalents' value slipped further in FY21. Even cash flow from operations has seen a huge fall to Rs 232 crore in 9M-FY21 from Rs 1738 crore in FY20. "We have been and continue to be in payment default under several of our aircraft lease agreements. Such defaults may lead our lessors to initiate legal or enforcement proceedings against us, enforce bank guarantees, appropriate security deposits or repossess our aircraft, which will adversely affect our business, financial condition and results of operations. Further, we were also in default under one of our loan agreements (in relation to which we have entered into an agreement to reschedule the principal repayments), said the company's DRHP.
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![The number of flight departures were consistently on the rise till FY20. However, in FY21, flight operations were majorly hit due to complete shut downs or partial operations in place. "We may be unable to fulfill our payment commitments under our aircraft purchase agreements with Airbus," the company said.](https://images.moneycontrol.com/static-mcnews/2021/05/Departure-Nosedives-1405.jpg "The number of flight departures were consistently on the rise till FY20. However, in FY21, flight operations were majorly hit due to complete shut downs or partial operations in place. "We may be unable to fulfill our payment commitments under our aircraft purchase agreements with Airbus," the company said.")
The number of flight departures were consistently on the rise till FY20. However, in FY21, flight operations were majorly hit due to complete shut downs or partial operations in place. "We may be unable to fulfill our payment commitments under our aircraft purchase agreements with Airbus," the company said.
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In the last four fiscal years, the value of the total assets almost doubled in FY21 to Rs 14,458 crore as compared to Rs 7,553 crore in FY18.
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In the last three fiscals from FY18 to FY20, the contribution of passenger and ancillary segments to revenue was around 93 percent and 7 percent, respectively. However, in FY21 till December 2020, the revenue contribution from the passenger segment fell to 87 percent and from ancillary business, it rose to 13 percent.
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