Shares of Interglobe Aviation fell 10% to intra-day lows of Rs 3929.50 on NSE today as the aviation major reported a loss of Rs 987 crore for the second quarter ending September 2024. This marks a significant decline from a profit of Rs 189 crore in the same quarter last year and a profit of Rs 2,728 crore in the preceding June quarter.
Revenue Growth Amid Losses
Despite the net loss, the company’s revenue from operations surged 14% year-on-year to Rs 16,970 crore for the reporting quarter. Passenger ticket revenues reached Rs 14,359 crore, reflecting a 10% increase, while ancillary revenues rose by 21% YoY to Rs 1,875 crore.
Debt and Lease Liabilities
The capitalized operating lease liability for the airline stood at Rs 47,779 crore at the end of the September quarter. The total debt, including the capitalized operating lease liability, was reported at Rs 59,237 crore.
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Strong Cash Position and Fleet Expansion
As of the end of the quarter, IndiGo reported a total cash balance of Rs 39,341 crore, which includes Rs 24,359 crore in free cash and Rs 14,982 crore in restricted cash.
The airline operates a fleet of 410 aircraft, comprising 41 A320 CEOs, 201 A320 NEOs, 112 A321 NEOs, 45 ATRs, 3 A321 freighters, 6 B737s, and 2 B777s, reflecting a net increase of 28 passenger aircraft during the quarter.
Strategic Developments and Future Capacity Plans
IndiGo announced plans to launch its business class in two weeks, aiming to enhance customer experience. The airline expects its third-quarter capacity, measured in available seat kilometers (ASKs), to grow by early double digits compared to the third quarter of fiscal year 2024.
Brokerages on InterGlobe Aviation
Goldman Sachs on IndiGo
Goldman Sachs has maintained a “Buy” rating on Interglobe Aviation, but has reduced its target price to Rs 4,800.
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