IndiGo's Q1FY23 net loss narrows to Rs 10,643 million; reports highest ever quarterly revenue of Rs 130.2 billion

The loss in the quarter under review also declined compared to the March quarter when the reported loss  stood at Rs 16,818 million

The company attributed the net loss reported in QIFY23 to the headwinds caused by the depreciating rupee and higher fuel prices led to a net loss.

However, excluding foreign currency loss of Rs 14,246 million, net profit for the quarter aggregated to Rs 3,603 million, it said.

The Gurgaon-based company said it has achieved the highest ever quarterly revenue of Rs 130.2 billion in the first quarter of FY23, indicating a strong recovery in the post-pandemic era.

Total income for the quarter ended June 2022 was Rs 130,188 million, an increase of 310.7 percent over the same period last year.

For the quarter, the passenger ticket revenues were Rs 114,669 million, an increase of 399.1 percent, and ancillary revenues were Rs 12,863 million, an increase of 92.5 percent compared to the same period last year.

Revenue from operations increased by 327.5 percent YoY to Rs 128,553 million in Q1FY23 compared to Rs 30,069 million in the corresponding quarter last fiscal.

Sequentially, revenue from operations grew by 60.3 percent compared to Rs 80,207 million in the previous quarter.

Capacity increased by 145.0 percent while passenger numbers increased by 221.9 percent.

Yield improved by 50.3 percent and load factor improved by 20.9 points.

Fuel prices increased by 95.5 percent, which the company said was one of the main factors contributing to the loss reported during the quarter.

InterGlobe reported EBITDAR of Rs 7,169 million with EBITDAR margin of 5.6 percent, compared to negative EBITDAR of Rs 13,602 million with negative EBITDAR margin of 45.2 percent.

In terms of future capacity growth, the company said in the second quarter of the fiscal year 2023 capacity in terms of ASKs is expected to increase by around 70-80 percent as compared to the second quarter of the fiscal year 2022.

Available Seat Kilometres (ASK) – a measure of an airline's carrying capacity to generate revenue, taken by multiplying the available seats on any given aircraft by the number of kilometres flown on a given flight.

InterGlobe Aviation's CEO Ronojoy Dutta said, "Our revenue performance this quarter was impressive. We reported the highest ever revenue generated by the company and thereby produced profits at an operational level. However, cost pressures on fuel and foreign exchange prevented us from translating this strong revenue performance into net profitability.

"While our financial performance in the second quarter will be challenged by weak seasonality, the long-term revenue trend remains strong."

InterGlobe Aviation had a total cash balance of Rs 19,069.40 crore comprising Rs 8303.70 crore of free cash and Rs 10,765.70 crore of restricted cash.

As of 30th June 2022, the airline had a fleet of 281 aircraft including 35 A320 CEOs, 146 A320 NEOs, 65 A321 NEOs and 35 ATRs. There was a net increase of six aircraft during the quarter, InterGlobe Aviation said.