IndiGo logs ₹919 crore profit in Q4; revenue soars 76.5%

InterGlobe Aviation, the parent company of IndiGo, has reported a significant turnaround in its financial performance for the March quarter. The company recorded a profit of ₹919.2 crore, marking a remarkable recovery from the ₹1,681.8 crore loss incurred during the same period last year.

The outcome of its financial results was driven by a substantial increase in revenue from operations, which surged by 76.5 per cent year-on-year (YoY) to reach ₹14,160.6 crore, compared to ₹8,020.7 crore in the corresponding period last year.

Notably, the airline's passenger ticket revenue witnessed remarkable growth, soaring by 80.6 per cent YoY to ₹12,434.6 crore. In addition, ancillary revenues experienced a notable increase of 36.6 per cent YoY, amounting to ₹1,445.9 crore.

Furthermore, InterGlobe Aviation's EBITDA (earnings before income, tax, depreciation, and amortise one quarter stood at ₹2,966.5 crore. This figure represents a substantial improvement compared to the ₹171.8 crore recorded during the same period last year, indicating a robust financial performance and increased profitability.

The positive results reflect the company's resilient efforts in navigating the challenging business landscape marked by the global pandemic and the resulting impact on the aviation industry. IndiGo's strong recovery is attributed to effective cost management strategies, strategic route planning, and the gradual resurgence of air travel demand.

"With a combination of robust market demand and focused execution of our strategy, this was the second consecutive quarter wherein we produced strong operational and financial results, as we reported the highest ever fourth-quarter net profit of 9,192 million rupees," Pieter Elbers, CEO, IndiGo said.

During a post-earnings conference call, the management of InterGlobe Aviation, the parent company of IndiGo, expressed their optimism about the airline's performance in the last financial year, referring to it as a year of recovery and growth.

The management highlighted the strong momentum in forward bookings and announced plans for further expansion in Central and South Asia and the Middle East. The airline intends to hire 5,000 employees to support its expansion goals and aims to double its size by 2030.

IndiGo, which is India's largest airline, faced a challenging March quarter in 2021-22 due to dampened travel sentiment caused by the surge in COVID-19 cases linked to the Omicron variant. In comparison, during the same period a year ago, IndiGo had reported a net loss of ₹1,681.8 crore and a total income of ₹8,207.5 crore.

IndiGo's yield, or the revenue earned per paying passenger flown per kilometre, rose to ₹4.85 per km from ₹4.40 per km in the corresponding quarter last year, indicating improved revenue generation per passenger.

Looking ahead, the low-cost carrier is optimistic about the June quarter of 2023-24 and expects a 5-7 per cent increase in total capacity, measured in terms of available seat kilometres or passenger carrying capacity, compared to the March quarter of 2022-23.

For the full financial year 2022-23, InterGlobe Aviation, the parent company of IndiGo, reported a net loss of ₹305.8 crore. This reflects a significant improvement from the net loss of ₹6,161.8 crore recorded in the previous financial year that ended in March 2022.

As of March 31, 2023, IndiGo's fleet comprised 304 aircraft, including 21 A320 ceos (current engine option), 162 A320 neos (new engine option), 79 A321 NEOs, 39 ATRs, two A321 freighters, and one Boeing 777 under a wet lease arrangement. Notably, the airline expanded its fleet by two aircraft during the quarter, indicating its ongoing efforts to enhance operational capabilities and meet growing demand.