IndiGo Q1 Results: Loss Widens As Second Covid-19 Wave Disrupts Travel
IndiGo's parent's net loss stood at Rs 3,179 crore in April-June compared with a loss of Rs 1,159 crore in March quarter.
The operator of India’s biggest airline reported a loss for the sixth straight quarter as travel remained restricted due to the resurgence in Covid-19 cases.
Net loss of Interglobe Aviation Ltd., the parent of IndiGo, stood at Rs 3,179 crore in the April-June period compared with a loss of Rs 1,159 crore in the preceding three months, according to an exchange filing. Analyst estimates compiled by BloombergQuint had pegged the loss at Rs 1,979 crore.
Yields, a measure of average fare per passenger per kilometre, also fell to Rs 3.48 per kilometre from Rs 3.70 as of March.
Q1 FY22 Highlights (QoQ)
Revenue declined 52% to Rs 3,007 crore, against the Rs 3,190-crore forecast.
The airline reported an operating loss of Rs 1,418 crore compared with a Rs 616-crore earnings before interest, tax, depreciation, amortisation, and rental costs in the preceding quarter. The analysts had estimated an operating income of Rs 214 crore.
India’s airlines were among the worst-hit after the nation imposed the world’s biggest lockdown to curb the first wave of the coronavirus pandemic, barring local and international travel. The deadlier second wave again forced several states to shut borders, adding to the industry’s woes.
Ronojoy Dutta, chief executive officer at IndiGo, said he was “deeply disappointed with the results”. Increased fuel prices and second Covid wave hurt the company’s performance in the quarter, he said in a post-earnings call.
Dutta, in a statement, said the number of passengers traveling declined sharply in May and June. “[But] with the second Covid wave receding, we are seeing a measured recovery in bookings for July and August.”
The carrier remains “firmly optimistic” about its future. It hopes to reach 100% of domestic pre-Covid capacity by the year-end, Dutta said.
Other Highlights (QoQ)
Other income was down 29% to Rs 163 crore.
Total cash balance available with the company stood at Rs 17,067 crore, down 8%.
Load factor was at 58.7% compared with 70.2%.
Shares of Interglobe Aviation closed 1.4% lower before the results were announced, compared with a 0.49% drop in the Nifty 50.