An IndiGo airlines aircraft prepares to land at Chhatrapati Shivaji International Airport in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)

Q3 Results: IndiGo Returns To Profit On Other Income, Forex Gain

InterGlobe Aviation Ltd., the operator of IndiGo, returned to profitability in the three months ended December, aided by higher other income, a bigger foreign exchange gain and no tax expense.

India’s largest airline’s net profit fell 74.95 percent on a yearly basis to Rs 191 crore in the third quarter, according to its exchange filings. Analysts had forecast a wide range for bottom line between a net loss of Rs 600 crore and a net profit of Rs 600 crore.

The low-cost carrier had reported a surprise loss of Rs 652 crore in the previous quarter because of a weaker rupee and higher aviation turbine fuel prices.

Revenue rose 28.14 percent on a yearly basis to Rs 7,916 crore in the three months ended December as IndiGo’s air traffic grew 23.7 percent year-on-year to 54.79 lakh during the period. That was in line with the Rs 7,967-crore estimate by BloombergQuint.

Earnings before interest, tax, depreciation and amortisation and rental cost, a key profitability metric for an airline, declined 19.2 percent to Rs 1,595 crore. Analysts had estimated Ebitdar between Rs 400 crore and Rs 1,900 crore.

The company’s Ebitdar margin contracted 11.84 percentage points to 20.15 percent for the quarter.

IndiGo’s revenue available per seat kilometre fell 3.6 percent, year-on-year, to Rs 3.7 due to higher capacity addition and lower passenger growth. Its fuel cost per available seat kilometre rose 26.6 percent to Rs 1.57 owing to higher fuel cost.

We have posted a profit of Rs 191 crore in a continued difficult environment and have grown our fleet by one aircraft a week for a 33 percent capacity increase for the quarter.
Rahul Bhatia, Co-Founder and Interim Chief Executive Officer, InterGlobe Aviation Ltd.

The carrier added 19 aircraft to its fleet in the quarter, raising its tally to 208.

The airline’s passenger load factor declined 320 basis points to 85.3 percent on a yearly basis due to lower passenger growth and higher capacity addition. Capacity rose 33 percent in the December quarter compared with a passenger growth of 24-25 percent.

The company’s debt at the end of December stood at Rs 2,475.9 crore, a 2 percent increase compared with the same period the previous year.

Other Highlights

  • Other income up 36 percent year-on-year to Rs 313 crore.
  • Foreign exchange gains rises 29 percent to Rs 103 crore.
  • Tax expense in the third quarter was nil as the company reported a loss in the previous quarter.