IndiGo Q2 Results: Aviation major reports net loss of ₹986.7 crore amid rising fuel costs| Key Highlights

IndiGo Q2 Results: Airline InterGlobe Aviation (IndiGo) on Friday reported consolidated net loss for the fiscal's second quarter ended September (Q2FY25) to ₹986.7 crore, compared to a net profit of ₹188.9 crore in the year-ago period. It was ₹2,728.8 crore in the last year quarter (Q1FY25).

In a filing to the exchange, the company reported that the net loss for the quarter ending in September was primarily caused by increased fuel expenses and a record number of groundings, although those have begun to decrease now.

The operator of low-cost airline's revenue from operations during Q2FY25 surged 13.6% year-on-year (YoY) to ₹16,969.6 crore from ₹14,943.9 crore in Q2FY24. However, sequentially dropped over 13% from ₹19,570.7.

At the operating level, earnings before interest, tax, depreciation, amortisation and rent cost (EBITDAR) profit or consolidated operating profit for the September quarter came in at ₹2,434 as against an operating profit of ₹2,446.5 crore in the year-ago quarter.

“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. 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. It marks a proud moment for us as we launch our business class two weeks from now and offer a new experience to our customers. We are receiving positive response to our recently launched loyalty rewards program – IndiGo BluChip,” said Pieter Elbers, CEO of the airline in an exchange filing.

Revenue and Cost Comparisons

In an exchange filing, the company announced that for the September quarter, its passenger ticket revenues reached ₹14,359.2 crore, reflecting a 9.9% rise, while ancillary revenues totalled ₹1,875 crore, marking a 20.9% increase compared to the same quarter last year.

The company further reported that the total expenses for the quarter ending September 2024 amounted to ₹18,666.1 crore, reflecting a 21.9% rise compared to the same quarter the previous year.

InterGlobe Aviation reported an increase in yield per passenger, reaching ₹4.55 in the September quarter compared to ₹4.44 from the previous year. The low-cost airline's load factor was 82.6% at the close of the September quarter, slightly down from 83.3% during the same period last year.

Cash and Debt

The company reported that IndiGo holds a total cash reserve of ₹39,341.9 crore, consisting of ₹24,359.7 crore in free cash and ₹14982.2 crore in restricted cash. The liability for capitalised operating leases was ₹47779.4 crore. The overall debt, which includes the capitalised operating lease liability, amounted to ₹59,236.9 crore.

Network and Fleet

The company reported in an exchange filing that as of September 30, 2024, it has a fleet of 410 aircraft, which includes 41 A320 CEOs (17 damp lease & 4 secondary leases), 201 A320 NEOs, 112 A321 NEOs, 45 ATRs, 3 A321 freighters, 6 B737 (damp lease), and 2 B777 (damp lease); marking a net increase of 28 passenger aircraft in the quarter.

IndiGo reached a maximum of 2,161 daily flights during this period, which included non-scheduled flights. Throughout the quarter, it offered scheduled services to 88 domestic locations and 31 international locations.

IndiGo share price today

InterGlobe Aviation share price on Friday, closed 3% lower at ₹4,383.15 apiece on BSE. According to Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One, IndiGo share price faced pressure in today’s session, breaking a key support at ₹4,500. Prices have fallen below the previous swing low and the 89 EMA, signalling further near-term weakness with potential downside toward 4,200. Immediate resistance stands at ₹4,500.

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