IndiGo Q2 Results: Net Loss At Rs 987 Crore

IndiGo operator InterGlobe Aviation Ltd. swung to loss during the three months ended September. The carrier reported a loss of Rs 987 crore during the July-September period compared with a profit of Rs 189 crore clocked in the year-ago period, according to its stock exchange notification on Friday.

The low-cost airline's revenue during the quarter under review rose 14% to Rs 16,970 crore from Rs 14,944 crore in the corresponding quarter of the previous fiscal. Bloomberg analysts' consensus estimate for revenue was Rs 17,254 crore.

The earnings before interest, taxes, depreciation and amortisation were flat at Rs 2,396 crore, whereas the Ebitda margin contracted to 14.1% from 16%.

• Revenue up 14% to Rs 16,970 crore versus Rs 14,944 crore (Bloomberg estimate: Rs 17,254 crore).

• Net loss at Rs 987 crore versus profit of Rs 189 crore (Bloomberg estimate: profit of Rs 134 crore).

• Ebitda flat to Rs 2,396 crore.

• Ebitda margin at 14.1% versus 16%.

In the quarter ended September, capacity rose by 8.2% to reach 38.2 billion available seat kilometres, while the number of passengers increased by 5.8% to 27.8 million. The airline’s yield also improved by 2.3%, reaching Rs 4.55, although the load factor slightly dipped by 0.6 percentage points to 82.6%.

Passenger ticket revenues climbed 9.9% to Rs 14,359 crore, with ancillary revenues seeing robust 20.9% growth, amounting to Rs 1,875 crore.

Chief Executive Officer Pieter Elbers commented on the results, stating, "IndiGo’s growth and expansion continued as our topline grew by 14.6% on a year-over-year basis in the second quarter to Rs 178 billion rupees. In a traditionally weaker second quarter, results were further impacted by headwinds related to groundings and fuel costs. We have turned the corner as the number of grounded aircraft and associated costs have started reducing."

Elbers also highlighted the upcoming launch of IndiGo's business class service, set to debut in two weeks, and noted the positive feedback for the recently introduced loyalty program, IndiGo BluChip.

"We continue to capitalise on the growth of the Indian market and associated opportunities and at the same time remain a cost leader in this competitive market," he added.