IndiGo reports Rs 1,895Cr net profit in Q4FY24; Revenue up 26% YoY

InterGlobe Aviation Ltd, which owns and operates IndiGo, reported a net profit of Rs 1,894.8 crore for the quarter ended March 31, 2024. 

This represents a significant increase from the Rs 919.2 crore profit reported in the same period last year.

The airline's net profit for Q4 FY24 met the expectations of several brokerages, which had projected a profit of around Rs 1,900 crore.

What contributed to the increased profits?

The substantial rise in profits is primarily attributed to strong demand for air travel, which helped offset the challenges posed by rising fuel costs. IndiGo's revenue from operations increased by 26% year-over-year to Rs 17,825.3 crore.

However, this was slightly below the estimated Rs 19,452 crore. The airline's EBITDAR (earnings before interest, tax, depreciation, amortization, and rent) also saw a significant increase, jumping 48.7% to Rs 4,412.3 crore, with a margin improvement to 24.8%.

Passengers growth

IndiGo's load factor, which indicates the percentage of passenger-carrying capacity utilized, improved by 2.1 percentage points to 86.3%.

The airline carried 26.7 million passengers in Q4 FY24, a 14% increase from 23.4 million in the same period last year, commanding a market share of 60.3%. This rise in passenger numbers and market share highlights the airline's strong position in the market.

Key financial metrics?

IndiGo reported a total income of Rs 18,505.1 crore for Q4 FY24, up from Rs 14,600.1 crore in the previous year. The airline's passenger ticket revenues increased by 25.5% to Rs 15,600.9 crore, while ancillary revenues grew by 18.9% to Rs 1,719.4 crore.

The revenue per available seat kilometre (RASK) increased by 9.7% to Rs 5.13, whereas the cost per available seat kilometre (CASK) rose by 5.6% to Rs 4.62. 

Competition

IndiGo continues to face challenges from high fuel costs and competition from new entrants like Akasa Air and the Tata Group, which is merging Air India with Vistara.

Despite these challenges, IndiGo has benefited from the post-pandemic recovery in domestic air travel and the grounding of rival Go First.

The airline's fleet increased to 367 aircraft, and it operated a peak of 2,021 daily flights during the quarter. IndiGo's total debt rose to Rs 51,280 crore, while its total cash balance grew to Rs 34,737.5 crore, indicating a robust financial position.

"FY24 has been a year of many remarkable achievements and milestones. For the full financial year 2024, we reported our highest-ever total income of around Rs 71,200 crore with a net profit of around Rs 8,200 crore," CEO Pieter Elbers said.