InterGlobe Aviation, which operates India’s largest airline, IndiGo, reported its highest ever fourth-quarter profit — of Rs 919 crore — in January-March FY23.
In the same period of FY22, the airline had posted a net loss of Rs 1,681 crore.
For FY23, the airline posted a net loss of Rs 305 crore as against a net loss of Rs 6,161 crore the previous financial year.
The profit in the fourth quarter came on the back of 60.5 per cent growth in passengers and 76.5 per cent increase in revenue on a year-on-year basis as the airline mitigated supply-chain disruption with wet leases and lease extensions.
The profit was boosted by foreign exchange gains of Rs 252 crore and Rs 439 crore in other income. Other income consisted of finance income, viability gap funding, and compensation from original equipment manufacturers.
IndiGo, which has over 30 aircraft grounded due to engine issues, remains confident of meeting 5-7 per cent capacity increase guidance in the first quarter of FY24. It also does not expect a significant increase in lease expenses due to inflation or rise in interest rate.
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“Lessors look at IndiGo favourably ... Given the strength of our balance sheet, we are able to negotiate better rates,” Chief Financial Officer Gaurav Negi told analysts in post-result conference call on Thursday.
Chief Executive Officer Pieter Elbers said. “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.”
Revenue from operations rose 76.5 per cent on a year-on-year basis to Rs 14,160 crore with an increase in capacity and the load factor. The yield increased 10.5 per cent year-on-year but was lower than in the December quarter due to seasonality.
Expenses in the quarter increased to Rs 13,680 crore due to a rise in fuel and maintenance costs.
In FY24 IndiGo plans to add 40-50 aircraft and ramp up its network as it aims to handle 100 million passengers (as against 86 million in FY23).
It is using its Rs 12,000-crore cash balance to prepare for the future. This includes investment in new products and technologies, including a loyalty programme and freighters.