After a series of quarterly losses, IndiGo swings back to profit in Q3

India’s largest airline posted a net loss of ₹1,435 crore in September quarter, aided by a revival in air traffic due to festive season. In the last year period, the company has suffered a massive loss has been ₹6,201 crore.

The Gurgaon-headquartered company’s revenue from operations surged by a massive 89% to ₹9,294 crore during the third quarter when compared with ₹4,909 crore in the corresponding quarter of the last year.

On Friday, IndiGo scrip was higher by 1.52% to close at ₹1,971 on NSE.

The company has reported an EBITDAR (earnings before interest, tax, depreciation, amortisation and rent) of ₹1,995 crore for the third quarter ended December.

“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,” said IndiGo CEO Ronojoy Dutta.

For the quarter, IndiGo’s passenger ticket revenues were ₹8,073 crore, an increase of 98% and ancillary revenues were ₹1,141 crore, up 41% compared to the same period last year.

Meanwhile, total expenses for the December quarter rose 62% year-on-year to ₹9,346 crore.

At the end of December quarter, IndiGo had a total cash balance of ₹17,318 crore, comprising ₹7,814 crore of free cash and ₹9,504 crore of restricted cash.

The capitalized operating lease liability stood at ₹30,764 crore, while the total debt (including the capitalized operating lease liability) was ₹35,153 crore.

As of 31 December 2021, IndiGo’s fleet comprised 283 aircraft including 56 A320 CEOs, 140 A320 NEOs, 52 A321 NEOs and 35 ATRs, a net increase of 4 aircraft during the quarter.

The airline has appointed co-founder and promoter Rahul Bhatia as the managing director of the company.

“The board of directors, during its meeting on Friday, unanimously approved the appointment of Bhatia as the managing director with immediate effect, subject to the approval of the shareholders,” it said in a statement.

Bhatia said 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.

IndiGo Chairman Meleveetil Damodaran said the move will further strengthen the airline in the years ahead. Bhatia would oversee all aspects of the airline, and actively lead the management team, he added