Indigo Q3 results: Company beats estimates

Net profit -InterGlobe Aviation which operates under the brand name IndiGO reported a net profit of Rs 128.4 crore for Q3FY22. Analysts had earlier estimated that the company will post a loss. In the year-ago period, the company has posted a loss of Rs 626 crore.

Revenue surge - The company has reported revenue of Rs 9,294 crore, a growth of a massive 89% YoY. Last year in the December quarter, the company reported a revenue of Rs 4,909 crore. IndiGo's passenger ticket revenues were Rs 8,073 crore, an increase of 98%. The ancillary revenues were Rs 1,141 crore, up 41% compared to the same period last year.

EBITDAR and expenses - The company has reported (earnings before interest, tax, depreciation, amortization, and rent) of Rs 1,995 crore for the third quarter ended December. Total expenses for the December quarter rose 62% year-on-year to Rs 9,346 crore.

Number of aircraft - The company reported that it had a fleet of 283 aircraft as of December 31 - a net increase of 4 aircraft sequentially. IndiGo operated a peak of 1,574 daily flights during the quarter including non-scheduled flights.

Other updates - Fourth-quarter capacity in terms of ASKs ( Available Seat Kilometres) is expected to reduce by around 10-15% as compared to the third quarter. It provided scheduled services to 71 domestic destinations and various international locations through passenger charters and air bubble flights.

Brokerage View

ICICI Securities has upgraded its rating on the aviation company to HOLD from SELL with a revised target price of Rs 1,871 from Rs 1,650 earlier.