Interglobe Aviation Q3 Results Review - Better Placed To Navigate Engine Challenges: Prabhudas Lilladher

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Prabhudas Lilladher Report.We cut our Ebitdar estimates by 9%/2% for FY25E/FY26E as we re-align our available seat kilometers assumptions amid escalation in engine issues at Pratt & Whitney (~21% of the fleet is currently grounded). While InterGlobe Aviation Ltd. has taken mitigation measures like inducting aircrafts on damp lease it is likely to result in higher rental outgo in the near term. Nonetheless, artificial fleet scarcity arising from higher Aircraft on Ground can keep pricing at elevated levels and we expect yields of Rs 4.9/Rs 4.7 for FY25E/FY26E. Overall, we believe Indigo is better placed to navigate the P&W engine challenge as it has healthy fleet delivery pipeline with one induction expected each week in FY25E. In addition, the airline is partly utilizing Rs 192 billion of free cash to buy ATR’s and spare engines to compensate for shortfall in capacity. We expect revenue compound annual growth rate of 15% for next three years with Ebitdar margin of 23.5%/23.6%/21.8% in FY24E/FY25E/ FY26E (lower in last year due to higher fuel cost). Retain ‘Accumulate' with a target price of Rs 3,312 (earlier Rs 3,053) by assigning enterprise value/Ebitda multiple of 7.5 times as we roll forward to FY26E..Click on the attachment to read the full report:.InterGlobe Aviation Q3 Results Review - Outperforms Expectations In A Seasonally Strong Quarter: Motilal Oswal.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Interglobe Aviation Q3 Results Review - Better Placed To Navigate Engine Challenges: Prabhudas Lilladher

Aircraft on Ground is in mid-70’s due to P&W engine issues.

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Interglobe Aviation Q3 Results Review - Better Placed To Navigate Engine Challenges: Prabhudas Lilladher

Aircraft on Ground is in mid-70’s due to P&W engine issues.

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