InterGlobe Aviation, the parent company of India’s largest airline, IndiGo, announced its September quarter results today, November 4, post market hours, reporting a net loss of ₹2,582 crore in Q2 compared to a loss of ₹987 crore in the same quarter last year.
The airline’s performance was impacted by higher operational costs and a sharp decline in EBITDA margin, even as revenue from operations rose 9.3% year-on-year to ₹18,555 crore, supported by steady growth in passenger traffic and improved yields.
Capacity during the quarter increased 7.8% to 41.2 billion, while passenger numbers grew 3.6% to 28.8 million. However, a significant reduction in EBITDAR margin to 6.0% from 14.3% in the year-ago period weighed on overall profitability.
Excluding the impact of foreign exchange fluctuations, IndiGo would have reported a net profit of ₹103.9 crore.
Forex losses drive total expenses higher
IndiGo’s total expenses for the September quarter surged 18.3% year-on-year to ₹22,081 crore, largely driven by a sharp spike in foreign exchange losses. The airline reported a forex loss of ₹2,892 crore, compared to just ₹204 crore in the same quarter last year, marking a massive 1,102% increase, the steepest rise among all cost components.
Apart from forex losses, depreciation and amortization expenses rose 26.5% YoY to ₹2,640 crore, while finance costs increased 18.1% YoY to ₹1,465 crore, reflecting IndiGo’s expanding fleet size and higher lease liabilities.
Meanwhile, supplementary rentals and aircraft repair & maintenance costs climbed 18.9% YoY to ₹3,263 crore, adding to the cost burden, though aircraft fuel expenses provided some relief, declining 9.7% YoY to ₹5,962 crore.
(more to come)