InterGlobe Aviation Ltd., the parent company of IndiGo, reported a loss for the third straight quarter as the weak rupee continued to negatively impact operations.
The operator of India's largest airline reported a consolidated net loss of Rs 1,583.3 crore in the quarter ended September, according to its exchange filing. In the previous quarter, net loss stood at Rs 1,064.3 crore, and it was at Rs 1,435.7 crore a year ago.
A consensus estimate of analysts tracked by Bloomberg had projected it at Rs 904.3 crore.
Excluding the foreign exchange loss of Rs 1,201.5 crore, the airline's loss comes to Rs 381.8 crore.
High aviation turbine fuel prices and a depreciating rupee hurt the prospects of IndiGo, which has nearly 60% market share and is turning profitable. Maintenance and repair costs are paid for outside of India and in foreign currency.
InterGlobe Aviation Q2 FY23 Highlights (YoY):
Revenue rose 123% to Rs 12,497.6 crore against the Rs 11,521-crore forecast.
Ebitdar rose 32.7% to Rs 229.2 crore.
Ebitda margin stood at 1.8% versus 6.1% last year.
The company has reported losses in 10 out of the last 11 quarters.
The only profitable quarter was October-December last year, when the festive season led to increased air travel.
The aviation sector was one of the worst hit by the Covid-19 pandemic, requiring first a nationwide lockdown and then local curbs to mitigate the spread of the virus.
"In spite of a seasonally weak quarter, we witnessed relatively good yields with strong demand across the network," the company's newly appointed Chief Executive Officer Pieter Elbers said, in a press release.
Fuel prices and exchange rates, however, adversely impacted the financial performance, he said.
"With an industry challenged by global supply chain disruptions, we are working on various countermeasures to accommodate this strong demand," Elbers said.
Shares of IndiGo's parent company ended 0.18% lower before the results were announced, compared with a 0.36% rise in the benchmark Nifty 50.
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