IndiGo Q2 results: Airline posts Rs 189-crore profit, revenue rises 20%

IndiGo Airlines' parent company, InterGlobe Aviation Ltd, posted a net profit of Rs 189 crore in Q2FY24 as against a net loss of Rs 1,583.33 crore in the July-September period last fiscal. IndiGo had reported a net profit of Rs 3,090 crore in Q1FY\24.

The airline's revenue from operations surged almost 20 per cent to Rs 14,943 crore, from Rs 12,497 crore in the year-ago period.

IndiGo, which is India's largest domestic airline, said that the revenue surged on the back of a sharp rise in domestic travel during the quarter. It said demand for domestic travel in India has continued to surge for the past three quarters.

For four consecutive quarters, IndiGo has delivered profitable growth demonstrating effective execution of its plans and strategy coupled with strong demand, a company statement said.

“With our clear strategy and focus on execution, we have completed a full cycle and remained profitable for the last four quarters,” IndiGo CEO Pieter Elbers said.

Its EBITDAR (Earnings before interest, taxes, depreciation, amortization and restructuring or rent costs) rose to Rs 2,446 crore for the quarter from Rs 229 crore a year ago. The operating margin subsequently expanded to 16.4 per cent from 1.8 per cent in Q2 FY23.

The airline reported that its available seat per kilometer, that is ASK, surged to 35.3 billion in Q2 FY24 from 27.7 billion a year ago. The growth was about 28 per cent. But the revenue per ASK dipped to Rs 4.25 from Rs 4.57 a year ago.

As per Directorate General of Civil Aviation data, IndiGo transported 23.3 million passengers during this quarter, marking a 33 per cent increase from the previous year.

The passenger load factor improved to 83.3 per cent in the quarter, from 79.2 per cent a year ago. 

The total cash on books as of September end was at Rs 30,666 crore, compared with Rs 19,661 crore on Q2 FY23. The total debt on books was Rs 49,392 crore in the September quarter as compared with Rs 40,945 crore a year ago.

The airline reported that its fuel expenses in the July-September quarter reduced by 6.4 per cent to Rs 5,856 crore. But it went up sequentially 12 per cent due to the rise in crude oil prices in the international market. Aircraft fuel expenses constituted over 38 per cent of the total expenses in the quarter.

Share of InterGlobe Aviation closed at Rs 2,509.00, up by 0.79 per cent.

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