IndiGo Parent Firm, InterGlobe Aviation, Clocks Strong Performance In Q4, However, Yearly Results Remain Weak

The airline’s operational revenue for the quarter stood at Rs 22,151.9 crore, marking a 24.3 per cent growth from Rs 17,825.3 crore in the corresponding quarter a year earlier.

The airline’s load factor — a key efficiency metric — also edged up to 87.4 per cent, from 86.3 per cent in the year-ago quarter.

Source : PTI

InterGlobe Aviation, which operates India’s largest airline IndiGo, has reported mixed financial results for the 2024-25 fiscal year (FY25). The company’s annual net profit slipped by 11.19 per cent to Rs 7,258.4 crore, compared to Rs 8,172.5 crore recorded in the preceding 2023-24 fiscal year (FY24). However, its quarterly performance for the January–March period (Q4FY25) painted a far more positive picture.

For the fourth quarter, IndiGo posted a sharp 61.89 per cent increase in consolidated net profit on a year-on-year basis, touching Rs 3,067.5 crore, up from Rs 1,894.8 crore in Q4FY24, reported IANS.

Even after factoring out the impact of foreign exchange fluctuations, the profit showed a solid 44.7 per cent rise to Rs 2,981.1 crore, compared to Rs 2,060 crore in the fourth quarter a year earlier.

The airline’s operational revenue for the quarter stood at Rs 22,151.9 crore, marking a 24.3 per cent growth from Rs 17,825.3 crore in the corresponding quarter a year earlier.

At the same time, EBITDAR (Earnings Before Interest, Taxes, Depreciation, Amortisation, and Rent) rose by 57.5 per cent to reach Rs 6,948.2 crore, while the EBITDAR margin improved to 31.4 per cent, compared to 24.8 per cent a year ago.

Factors Behind The Growth

IndiGo also saw substantial growth in its operational metrics during the March quarter. Capacity increased by 21 per cent, and passenger numbers climbed 19.6 per cent to 3.19 crore. The airline’s load factor — a key efficiency metric — also edged up to 87.4 per cent, from 86.3 per cent in the year-ago quarter.

CEO Pieter Elbers commented on the results, stating that IndiGo had delivered a “healthy financial performance” during both the fourth quarter and the full year. He credited this to “record passenger volumes, operational efficiencies, and the efforts of IndiGo employees.”

Challenges And Dividend

However, Elbers also pointed out headwinds in the current quarter. “The closure of Pakistan’s airspace and 32 airports impacted the airline’s operations in May,” he said. Of the affected airports, IndiGo operated flights to 11, leading to the cancellation of nearly 170 flights per day. He noted that April had started strong but expected a weaker performance in May, with recovery likely from June.

Elbers proposed a dividend of Rs 10 per share for the shareholders. He also highlighted that a leading global credit rating agency had given IndiGo an investment-grade rating, citing the airline’s “strong balance sheet and continued performance.”