IndiGo Q1FY25: Net profit drops 11.7% to Rs 27,288 million on increased expenses

Indigo's PAT after excluding foreign exchange losses stood at Rs 27,863 million  compared to Rs 29,745 million in June quarter in the previous fiscal, marking a loss of 6.3 percent.

In the first quarter of FY25, IndiGo reported a notable increase in capacity, which rose by 11.1% to reach 36.3 billion available seat kilometers.

This expansion was accompanied by a 6.2% increase in the number of passengers, totaling 27.8 million. The company said  capacity in terms of ASKs is expected to increase by high single digits in the second quarter of fiscal year 2025 as compared to the second quarter of fiscal year 2024.

IndiGo's total expenses in the first quarter increased by about 24% to Rs 1,74,490 million, with aircraft fuel expenses making up around 37% of the costs.

The company's aircraft rental costs more than tripled as fuel cost per available seat kilometer (CASK) increased by 10.5% to Rs 1.77, and CASK excluding fuel up by 11.1% to Rs 2.86.

The airline's yield also saw a modest growth of 1.3%, reaching Rs 5.24 per passenger kilometer, although the load factor experienced a slight decline of 1.9 percentage points, settling at 86.7%.

Despite these challenges, IndiGo's revenue from operations rose by 17.3% to Rs 19,571 crore.

Total income for the quarter ended June 2024 was Rs 202,489 million, an increase of 18.0% over the same period last year.

For the quarter, our passenger ticket revenues were Rs 165,019 million, an increase of 10.0% and ancillary revenues were Rs 17,634 million, an increase of 13.9% compared to the same period last year.

The airline's earnings before interest, taxes, depreciation, amortization, and restructuring or rent costs (EBITDAR) stood at Rs 58,111 million, representing a 29.7% EBITDAR margin. This was slightly lower than the previous year's EBITDAR of Rs 52,108 million, which had a higher margin of 31.2%.

As of June 30, IndiGo had a total cash balance of Rs 361,006 million comprising Rs 220,876million of free cash and Rs 140,130 million of restricted cash.

The capitalised operating lease liability was Rs 449,567 million. The total debt (including the capitalized operating lease liability) was Rs 525,264 million.

In the April June quarter, IndiGo’s Technical Dispatch Reliability stood at 99.89%.

IndiGo had an on-time performance of 74.8% at four key metros and flight cancellation rate of 1.1%.

On the Q1FY25 results, IndiGo CEO Pieter Elbers said, “I am pleased to report another strong quarterly financial performance for the first quarter of financial year 2025. A continued growth in total income of 18 percent as compared to the same period last year to 202.5 billion rupees and a net profit of 27.3 billion rupees, resulting in a solid margin of around 14 percent.

“I want to extend heartfelt gratitude to our 28 million customers this quarter for their continued loyalty and choosing IndiGo for their travels. In a few days, we will celebrate our 18th anniversary wherein we will unveil our recently announced new initiatives to address the evolving market developments and our customers’ feedback. I would also like to thank all my 6E colleagues for their continued dedication, professionalism, and commitment in serving our customers.”