IndiGo Q2 Results: Airline reports profit of Rs 188 crore, up from a loss the previous year

6 Nov 2023 , 10:46 AM

InterGlobe Aviation, the operator of the IndiGo airline, posted robust results for the September 2023 quarter on Friday. The company reversed its previous year’s loss of Rs 1,583 crore to achieve a consolidated net profit of Rs 188 crore.

Consolidated operating income of Rs 14,944 crore, up nearly 20% YoY, was somewhat higher than the projected amount of Rs 14,613 crore.

The second quarter is always a difficult one for the sector, thus sequentially, the bottom line was much lower than the Rs 3,091-crore profit reported in the June quarter, while revenue fell by more than 10%.

The available seat per kilometre, or ASK, increased by around 28% to 35.3 billion in the most recent quarter from 27.7 billion in the same period last year.

Nonetheless, the revenue per ASK decreased to Rs 4.25 from Rs 4.57 in the previous year.

From 79.2% a year earlier to 83.3% during the quarter, the passenger load factor increased. At Rs 4.44, the yield dropped by more than 12%.

The costs of aviation fuel decreased 6.4% year over year to Rs 5,856 crore, but they increased 12% in the next month due to an increase in the price of crude oil. Over 38% of the overall expenses for the quarter were related to aircraft fuel.

Airport fees and taxes rose by 15% to Rs 981 crore, while aircraft and engine rents jumped by four times year to Rs 196 crore.

As of September’s end, there was Rs 30,666 crore in total cash on hand as opposed to Rs 19,661 crore the previous year.

As of September’s end, the total debt on books was Rs 49,392 crore, down from Rs 40,945 crore the previous year.

InterGlobe Aviation’s shares closed 0.7% higher at Rs 2,509.20 on the National Stock Exchange ahead of the earnings.

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