Indigo Q2 Results: Loss Widens To Rs 2,582 Crore Amid Massive Forex Hit
The substantial increase in loss was primarily attributed to a massive forex loss of Rs 2,892 crore during the quarter.
IndiGo’s in the second quarter saw the net loss widening sharply to Rs 2,581.7 crore, up from a loss of Rs 988.8 crore year-on-year. The loss has widened despite the company's revenue rising 9.3% to Rs 18,555.3 crore.
The substantial increase in loss was primarily attributed to a massive forex loss of Rs 2,892 crore during the quarter.
The airline managed to grow its top line, with revenue climbing from Rs 16,969.6 crore in the corresponding period last year. Despite this, the operational metrics saw mixed performance.
Earnings Before Interest, Taxes, Depreciation, and Amortisation or the Ebitda fell significantly by 64.2% to Rs 579.5 crore, pulling the Ebitda margin down to 3.1% from 9.5% that was reported in the previous year.
IndiGo Q2 Highlights (Consolidated, Year-on-Year)
Revenue rose 9.3% to Rs 18,555.3 crore versus Rs 16,969.6 crore.
Ebitda fell 64.2% to Rs 579.5 crore versus Rs 1,617.8 crore.
Margin stood at 3.1% versus 9.5%.
Ebitdar adjusted for forex was up 44.6% at Rs 3,791.6 crore versus Rs 2,622 crore.
Ebitdar margin stood at 20.4% versus 15.5%.
Net Loss widened to Rs 2,581.7 crore versus a loss of Rs 988.8 crore.
Forex loss during the quarter stood at Rs 2,892 crore.
Further, the Ebitdar, which is adjusted for forex demonstrated strong growth, increasing by 44.6% to Rs 3,791.6 crore, and the Ebitdar margin expanded to 20.4% from 15.5%.
Looking ahead, the CEO stated that IndiGo is building a natural forex hedge by adding more international flights, as reported by Bloomberg.
The grounded fleet has also seen a significant reduction, dropping from 70 to 40 aircraft. IndiGo projects its capacity growth for the third quarter to be in the high teens compared to the previous year.
The stock closed 1.03% lower at Rs 5,367 apiece on the NSE. The scrip had slipped as much as 2% during trade. This decline compared to a 0.64% slip in the Nifty 50 at close on Tuesday.
