IndiGo Q2 Profit Jumps Four-Fold Beating Analyst Estimates
Interglobe Aviation Q2 profit was aided by credit received from Pratt and Whitney and Airbus
InterGlobe Aviation Ltd.’s profit rose nearly four-fold in the September-ended quarter as the parent of low-cost airline IndiGo received credit from Pratt & Whitney and Airbus for grounded aircraft and delivery delays.
Profit rose to Rs 552 crore from Rs 140 crore in the same quarter last year, the company said in an exchange filing today. The bottom line surpassed the Bloomberg analysts’ consensus estimate of Rs 321 crore.
“Profitability was favourably impacted due to better revenue management compared to last year as well as the credits,” the airline said in a media statement. Twenty-six Airbus A320neo jets were grounded in July due to engine (P&W) issues and the problem was fixed after Pratt & Whitney replaced the engines. All planes are flying now, the company had told Bloomberg last week.
We have posted a good quarter, both in terms of profitability and operational performance and have once again been ranked number 1 in on time performance.Aditya Ghosh, President and Director, InterGlobe Aviation Ltd.
Revenue for the quarter rose 27 percent year-on-year to Rs 5,291 crore, beating the consensus estimate of Rs 4,998 crore.
IndiGo’s parent reported a 61 percent jump in its earnings before interest, tax, depreciation, amortisation and rental income to Rs 1,557 crore from the year-ago period. The margin expanded to 29.4 percent from 23.2 percent in the same quarter last year.
The airline expects capacity to grow 14 percent in the quarter ending December and 19 percent for the year ending March 31, 2018.
Other Key Highlights:
- Passenger ticket revenue grew 25.7 percent to Rs 4,523.41 crore YoY.
- Available seat kilometer increased 13 percent to Rs 1,510 crore YoY.
- Revenue passenger kilometer rose 15.4 percent to Rs 1,268 crore YoY.
- Load factor expanded 180 basis points to 84 percent YoY.
- Technical dispatch reliability stood at 99.84 percent, while the flight cancellation rate was 0.37 percent.
- Total debt with the aircraft carrier fell 7.5 percent to Rs 2,536.8 crore YoY.