IndiGo Q2 result: Net loss narrows to Rs 1,435.7 cr; revenue up 104%

InterGlobe Aviation Ltd, the operator of IndiGo, India's largest airline in terms of market share, today reported a net loss of Rs 1,435.7 crore for July-Sept quarter, showing a steady decline in loss as compared to Rs 3,179 crore in Q1 FY22.

The narrowing of net loss for IndiGo was aided by revival in air traffic as the government removed COVID-19-induced curbs across the country. The company's revenue from operations stood at Rs 5,608.5 crore for the quarter, recording an increase of 104.6 per cent against a 78.3 per cent increase in capacity compared to the same period last year.

IndiGo CEO Ronojoy Dutta said the airline company is encouraged by the pace of revenue recovery. "We continue to work towards a return to profitability to strengthen our balance sheet. With a modern fleet, dedicated employees and a stronger economic environment we are well positioned to leverage all the growth opportunities around us."

IndiGo's EBITDAR (earnings before interest, taxes, depreciation, amortisation, and restructuring) for Q2 FY22 stood at Rs 340.8 crore, with the margin of 6.1 per cent vs Rs 408.5 crore and 14.9 per cent during the same period last year.

For the quarter, IndiGo's passenger ticket revenues stood at Rs 4,716.3 crore, recording an increase of 113.6 per cent. The ancillary revenues were Rs 817.7 crore, an increase of 61.4 per cent compared to the same period last year. The company's total expenses for the September quarter also rose 71.3 per cent YoY to Rs 7,234.4 crore.

As of September 30, 2021, IndiGo has reported a strong liquidity position, with a total cash of Rs 16,553.9 crore, including free cash of Rs 6,351.6 crore. The capitalised operating lease liability stood at Rs 27,562.6 crore by Q2 FY22. IndiGo said its total debt (including the capitalised operating lease liability) was Rs 32,335.3 crore as of September 30, 2021.

In terms of network, IndiGo's fleet comprised 279 aircraft, including 72 A320 CEOs, 130 A320 NEOs, 44 A321 NEOs and 33 ATRs. This is a net increase of 2 aircraft during Q2 FY22. During the quarter, IndiGo operated a peak of 1,209 daily flights (including non-scheduled) and a minimum of 759 flights.

In terms of outlook, IndiGo said Q3 FY22 capacity in terms of ASKs (available seat kilometers) is expected to increase by around 40 per cent as compared to Q2 FY22 and around 45 per cent as compared to the same quarter previous year. The IndiGo stock today closed at Rs 2,021, up Rs 10.75 or 0.53 per cent, on the National Stock Exchange (NSE).

Also read: IndiGo warns candidates against fraud job offers

Also read: India has won COVID battle; govt effectively managed pandemic, says Indigo CEO

Also read: IndiGo sees Tata as 'formidable competition' after Air India sale