IndiGo, operated by InterGlobe Aviation, achieved a net profit of ₹919 crore in Q4, marking the airline’s second consecutive profitable quarter. This is a significant turnaround from the ₹1,682 crore loss reported in the same period last year.
However, despite the positive performance, IndiGo’s net profit fell short of analyst expectations, which projected a net profit of ₹1,418 crore. Nevertheless, the airline’s revenue met analyst estimates, reaching ₹14,161 crore, showing a remarkable 76% year-on-year growth.
InterGlobe Aviation CEO Pieter Elbers attributed the strong operational and financial results to a combination of robust market demand and focused strategy execution. He highlighted that this quarter’s net profit is the highest ever reported for the fourth quarter.
In the previous quarter (Q3), IndiGo recorded a net profit of ₹1,423 crore and revenue of ₹14,933 crore.
Despite a significant increase in fuel costs during Q4, with a 23.5% year-on-year average rise, IndiGo managed to improve most of its operational metrics, leading to its second consecutive profitable quarter. Notably, this marks only the third profitable quarter for the airline in the past 12 quarters.
Looking at the full fiscal year 2022-23, IndiGo remained in the red with a loss of ₹306 crore. However, this reflects a considerable improvement compared to the ₹6,162 crore loss reported in FY22.
IndiGo’s Q4 and FY23 performance can be summarized as follows:
- Net profit in Q4: ₹919 crore
- Net profit in the same period last year: Loss of ₹1,682 crore
- Analyst estimated net profit in Q4: ₹1,418 crore (missed estimates)
- Q4 revenue: ₹14,161 crore (76% YoY growth)
- Q3 net profit: ₹1,423 crore
- Q3 revenue: ₹14,933 crore
- YoY fuel cost increase in Q4: 23.5%
- Second consecutive profitable quarter
- Third profitable quarter in the past 12 quarters
- FY23 net loss: ₹306 crore
- FY22 net loss: ₹6,162 crore