According to a Moneycontrol poll, the firm was expected to report a loss of Rs 327 crore while revenue was expected at Rs 8,503 crore.
Interglobe Aviation Ltd on Friday reported a surprise profit of Rs 129.79 crore in the December quarter for the first time after posting losses for seven consecutive quarters. The profit was buoyed by higher revenue and yields
Indigo had reported a loss of Rs 621.80 crore in the corresponding quarter of the previous fiscal.
Net revenue increased 89 percent to Rs 9,294.77 crore from Rs 4,909.98 crore a year ago. Its passenger ticket revenues came in at Rs 8,073.10 crore, up 98.4% while ancillary revenue stood at Rs 1141.70 crore, an increase of 41.3% compared to the year-ago quarter.
According to a Moneycontrol poll, the firm was expected to report a loss of Rs 327 crore while revenue was expected at Rs 8,503 crore.
"The firm swinging back to profit was due to higher revenue and better yields during the quarter along with its ability to keep its costs under control. The opening of the economy worldwide also helped the firm", a Mumbai-based analyst at a foreign brokerage said on the condition of anonymity.
Indigo's yields grew 19.2% to Rs 4.41 per kilometre at the end of December. Passenger load factor rose to 79.7% from 72% a year ago.
At the end of December 31, Indigo had 283 aircraft on its feet. This consisted of 56 A320 CEOs, 140 A320 NEOs, 52 A321 NEOs and 35 ATRs; a net increase of 4 aircraft during the quarter. It operated a peak of 1,574 daily flights during the quarter including non-scheduled flights.
It also provided scheduled services to 71 domestic destinations and various international locations through passenger charters and air bubble flights.
Aircraft fuel expenses surged 186% to Rs 3,269.30 crore while aircraft and engine rentals advanced 98% to Rs 127.30 crore. Total expenses increased 62% to Rs 9346.40 crore. EBITDA margin improved to 21.5% from 20.1% a year ago.
As of December 2021, its total debt stood at Rs 35,153.40 crore, up 26.8% from the same quarter last year.
“I am pleased that we were able to report a profit for the third quarter. It demonstrates that our business model is fundamentally strong. Our employees have remained a pillar of strength throughout this health crisis and have steadfastly provided superior service to our customers”, Ronojoy Dutta, chief executive officer of the company, said.
The firm said its board has approved the appointment of its co-founder and promoter Rahul Bhatia, as the managing director with immediate effect.
Earlier Bhatia stated that his agenda would be transformational and would focus on expanding the airline’s presence in India and in international markets and building for the long term.
Bhatia's appointment as MD comes a month after shareholders passed a resolution to amend a contentious RoFR clause in Indigo’s articles of association.
Bhatia will not draw any remuneration from the Company during his tenure as the Managing Director, other than the benefits or perquisites to which he is entitled as per the rules of the Company, as applicable from time to time.
He holds a degree in electrical engineering from the University of Waterloo in Ontario, Canada.
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