IndiGo shares decline nearly 5% after Q1 net profit drops

The IndiGo stock fell as much as 4.9% to hit an intra-day low of ₹4,273.2 apiece on the NSE. However, by 1:12 pm, the stock recovered some of its losses to trade 1.65% lower at ₹4,419.4 apiece.

In a stock exchange notification issued after market hours on Friday, IndiGo announced that its revenue from operations increased by 17.3% to ₹19,570.7 crore in Q1FY25 compared with the year-ago quarter.

The aviation company’s earnings before interest, taxes, depreciation and rent expenses (EBITDAR) increased 11.5% to ₹ 5,811.1 crore in Q1FY25 from ₹5,210.8 crore in Q1FY24. EBITDAR margins stood at 29.7% during the June quarter compared with 31.2% a year ago.

IndiGo said that it had a total cash balance of ₹36,100.6 crore, comprising ₹22,087.6 crore of free cash and ₹14,013 crore of restricted cash, as of June 30, 2024.

In terms of outlook for the ongoing quarter ending September 2024 (Q2FY25), IndiGo said that the second quarter capacity in terms of ASKs (available seat kilometres) is expected to increase by high single digits as compared to the year-ago period. In Q1FY25, IndiGo’s ASK increased by 11.1% year-on-year.

ASK is a measure of an airline’s carrying capacity to generate revenue, derived by multiplying the available seats on any given aircraft by the number of kilometres flown on a given flight.