Indigo Airways Q4FY23 PAT turns around to Rs919 crore on higher spread between RASK and CASK

Indigo Airways reported 76.55% higher revenues for the March 2023 quarter on consolidated basis at Rs14,161cr on improved customer demand for flying and positive traction. However, the profit turnaround was limited due to a sharp yoy spike in the price of aviation turbine fuel. With the tourism and travel picking up, hotels and airlines have been the biggest beneficiaries of the revival in most contact intensive industries.

Operating profits for the quarter were up 1627% in Q4FY23 at Rs2,967 crore. However, it must be noted here that the airline companies calculate operating profits as EBITDAR, which his before rent payments. For March 2023 quarter, the revenue per average seat kilometre (RASK) was up 17.9% at Rs4.68 yoy while the cost per average seat kilometre (CASK) fell -8.6% to Rs4.38 while the CASK ex-fuel fell by 21%. The spread turned from negative to positive on a yoy basis and boosted the turnaround.

Financial highlights for Mar-23 compared yoy and sequentially

 Interglobe Aviation    

Rs in Crore

Mar-23

Mar-22

YOY

Dec-22

QOQ

Total Income (Rs cr)

₹ 14,161

₹ 8,021

76.55%

₹ 14,933

-5.17%

Operating Profit (Rs cr)

₹ 2,967

₹ 172

1626.72%

₹ 3,399

-12.72%

Net Profit (Rs cr)

₹ 919

₹ -1,682

N.A.

₹ 1,423

-35.39%

 

 

 

 

 

 

Diluted EPS (Rs)

₹ 23.81

₹ -43.66

 

₹ 26.86

 

OPM

20.95%

2.14%

 

22.76%

 

Net Margins

6.49%

-20.97%

 

9.53%

 

 

The spread between RASK and CASK led to turnaround in the quarter. Fuel costs were up 74% yoy and that remains an overhang. It had total debt of Rs44,854 crore of which capitalized aircraft lease liabilities accounted for 85% of the debt. In the March 2023 quarter, passenger numbers increased by 61% yoy.

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