IndiGo shares climb 2% ahead of Q2 results; here's what analysts say

Shares of InterGlobe Aviation Ltd (IndiGo) climbed over 2 per cent in Friday's trade ahead of its September quarter results. The stock, which was trading flat for most of the session, saw a sudden jump in price, as it hit a high of Rs 2,540 on BSE, up 2 per cent over its previous close of Rs 2,489.45. 

Domestic demand stood at 106 per cent of the pre-Covid level in the September quarter, up 23 per cent YoY. Analysts noted that the quarter saw industry-wide 5 per cent fall in airfares due to weak seasonal demand in July-August period and increase in capacity by airline carriers to fill the gap created by GoFirst’s grounding in Q1FY24. On the other hand, aviation turbine fuel (ATF) prices fell 22 per cent YoY for the quarter. 

Elara Securities is expecting IndiGo's profit at Rs 1,459 crore. It sees sales for the quarter rising 28 per cent YoY to Rs 16,006 crore. Ebitda for the quarter is seen at Rs 3,355 crore, up 173 per cent YoY. 

Prabhudas Lilladher sees IndiGo to clock a 3 per cent YoY decline in sales due to the seasonal weakness, lower load factor and yields. It believes that a decrease in crude costs would cushion IngiGo's margin expansion against forex losses. "We built a forex loss of Rs 8 crore. IndiGo expected to report a profitable quarter," it said.

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