Indigo soars high

InterGlobe Aviation  OR Indigo as we know it, posted its highest ever quarterly net profit for Q1FY18 at Rs.811 crore, a 37% (YoY) rise. This was thanks to the 26% growth in revenue at Rs.5753 crore. Load factor grew by a good 470 bps.

Its EBITDA was up 28% at Rs.1951 crore and margins rose from 33.37% to 33.91%. 31% of its total revenue was eaten away by fuel costs and it has risen 71 bps on YoY.  In Q1, fuel costs have risen 16% but Indigo stated that because of its fuel efficient neo aircrafts, its cost rise was at 8%. All other costs – aircraft rentals, employee costs, depreciation, other expenses.. all have contracted. In fact interest outgo showed the sharpest decline of 120 bps.

The airline has a fleet of 135 planes including 22 A32neos and operates about 937 daily flights to 46 cities including 7 international.

IndiGo has a cash balance of Rs10,185 crore and free cash of Rs.5,189 crore. Debt stands at Rs.2524 crore. This could go up as it has placed a huge order for new aircrafts - order book is currently of around 411 aircrafts. It also plans to bid for Air India, which has not gone down too well with the traders.