IndiGo back in black with net profit in Q3; revenue soars 89%
IndiGo, the country’s biggest airline, posted strong numbers for the third quarter despite the spread of the pandemic at the fag end of the holiday season and surprised the street by swinging into the black after several quarters of losses.
InterGlobe Aviation, the parent of IndiGo, posted a net profit of Rs 129.8 crore compared with a net loss of Rs 620.1 crore in Q3 FY21. On a sequential basis, the improvement was even more prominent as it had posted a net loss of Rs 1,435.7 crore in the three months ended September 2021.
IndiGo’s revenue jumped 89% to Rs 9,294.8 crore compared with the year-ago period. Revenue rose 66% on a sequential basis compared to Q2 FY22. Strong revenue growth was partly offset by high fuel costs.
The company’s share price rose 1.8% to Rs 1,974.3 apiece in a weak Mumbai market on Friday.
Meanwhile, the firm has named co-founder Rahul Bhatia, who had a non-executive role, as the managing director of the firm.
Other key highlights
1) EBITDAR came at Rs 1,995.5 crore, up from Rs 987.1 crore a year earlier.
2) EBITDAR margin increased to 21.5% for the quarter, from 20.1% for the same period last year.
3) Average seat kilometer (ASK) rose 50.3% YoY and 45.2% sequentially to 23 billion.
4) Load factor rose to 79.7% during the quarter from 72% in Q3 FY21 and 71.1% in the preceding quarter.
5) Passenger ticket revenue was Rs 8,073.1 crore, an increase of 98.4%.
6) Ancillary revenue was Rs 1,141.7 crore, an increase of 41.3% from the same period last year.
7) Fuel cost nearly tripled YoY to Rs 3,269.3 crore during the quarter.
Ronojoy Dutta, CEO of IndiGo, said, “I am pleased that we were able to report a profit for the third quarter. It demonstrates that our business model is fundamentally strong.”
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