IndiGo Q1 Results - Net Loss Narrows, Revenue Up Over 300% YOY

The Indian airline company, InterGlobe Aviation, doing business as IndiGo, announced its financial results for the first quarter of FY23 on 3rd August 2022. The company reported a net loss of Rs. 1,064.26 crore in Q1 FY23, which contracted from Rs. 3,174.17 crore in Q1 FY22. 

The loss arose primarily on account of the rising fuel costs, as well as a depreciating rupee, causing a greater loss on account of foreign exchange fluctuations during this quarter. There was also an increase in the aircraft and engine rental costs. Additionally, aircraft repair and maintenance expenses, airport fees and charges, employee costs, and finance costs for the company also shot up in this quarter. 

On the other hand, the revenue from operations of the aviation company stood at Rs. 12,855.29 crore in the quarter under review, increasing a whopping 327.52% YoY from Rs. 3,006.91 crore in Q1 FY22. According to the company’s management, this was IndiGo’s strongest revenue performance ever, resulting in the highest ever quarterly revenue recorded by the company.

EBITDA of the company was reported at Rs. 716.9 crore in Q1 FY23, as compared to a negative EBITDAR of Rs. 1,360.2 crore in Q1 FY22. The EBITDAR margin in Q1 FY23 improved to 5.6%, as against a negative EBITDAR margin of 45.2% in Q1 FY22. 

During the quarter, IndiGo had a total cash balance of Rs. 19,069.4 crore, comprising Rs. 8,303.7 crore of free cash and Rs. 10,765.7 crore of restricted cash.

The number of passengers of the airline increased by 221.9% YoY in Q1 FY23. Additionally, in the quarter ended 30th June 2022, yield improved by 50.3% YoY, load factor improved by 20.9 points YoY, and capacity increased by 145% YoY. 

IndiGo reported a negative earning per share (EPS) of Rs. 27.64 in this quarter, which improved from a negative EPS of Rs. 82.47 in Q1 FY22. Ahead of the results, which were announced post market hours, the IndiGo share closed in the green at Rs. 1,967, up 1.15% from the previous day’s closing. 

Hits

• Revenue from operations stood at Rs. 12,855.29 crore in Q1 FY23, increasing 327.52% YoY. This was IndiGo’s strongest revenue performance, recording the highest ever quarterly revenue for the company. 
• EBITDAR was reported at Rs. 716.9 crore in Q1 FY23, as compared to a negative EBITDAR of Rs. 1,360.2 crore in Q1 FY22. 
• EBITDAR margin in Q1 FY23 improved to 5.6%, as against a negative EBITDAR margin of 45.2% in Q1 FY22. 
• Number of passengers of the airline increased by 221.9% YoY.
• Yield improved by 50.3% YoY.
• Load factor improved by 20.9 points YoY.
• Capacity increased by 145% YoY. 
• EPS was reported at Rs. 27.64 in this quarter, improving from a negative EPS of Rs. 82.47 in Q1 FY22.

Misses

• The company reported a net loss of Rs. 1,064.26 crore in Q1 FY23. However, the loss contracted from Rs. 3,174.17 crore in Q1 FY22. 

Click here: Interglobe Aviation Quarterly results

What the management says

The Company’s CEO, Mr. Ronojoy Dutta said, “Our revenue performance this quarter was impressive. We reported the highest ever revenue generated by the company and thereby produced profits at an operational level. However, cost pressures on fuel and foreign exchange prevented us from translating this strong revenue performance into net profitability. While our financial performance in the second quarter will be challenged by weak seasonality, the long-term revenue trend remains strong.”

Other things to know

• As of 30th June 2022, a fleet of 281 aircrafts, including 35 A320 CEOs, 146 A320 NEOs, 65 A321 NEOs, and 35 ATRs was reported. There was a net increase of 6 aircraft during the quarter. 
• IndiGo operated at a peak of 1,667 daily flights during the quarter, including non-scheduled flights. 
• During the quarter, the airline provided scheduled services to 73 domestic destinations and 20 international destinations.
• IndiGo had a Technical Dispatch Reliability of 99.90% in Q1 FY23.
• IndiGo had an on-time performance of 85.5% at the four key metros and a flight cancellation rate of 0.61%.
• IndiGo was awarded ‘Value Airline of the Year’ at the ATW Airline Industry Achievement Awards 2022.  
• IndiGo CarGo was awarded ‘Indian Air cargo Transport Leader of Covid Vaccine’ at CarGo India Conference. 
• IndiGo won a Silver Award for ‘Achievement in Customer Satisfaction’ at Asia-Pacific Stevie Awards 2022.
  

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Research Analyst: Bavadharini KS