IndiGo's Q3 net profit dips 18% despite increase in revenue
What's the story
InterGlobe Aviation, the parent company of IndiGo, has reported an 18% year-on-year (YoY) decline in its consolidated net profit for the December quarter. The number is at ₹2,449 crore, compared to ₹2,998 crore in the same quarter last year. The decline comes mainly due to a sharp rise in operating expenses. IndiGo's revenue from operations for Q3 FY25 increased by 14% YoY to ₹22,111 crore. This marks a significant jump from ₹19,452 crore recorded during the same period last year.
Financial performance
IndiGo's operational expenses rise in Q3
The airline's operating expenses also witnessed a substantial 20% rise, amounting to ₹20,466 crore as opposed to last year's ₹17,064 crore. IndiGo's profit after tax (PAT) margins witnessed a decline of 430 basis points in Q3 FY25, declining to 11.1% from 15.4% in the same period last year. The company's Earnings Before Interest, Taxes, Depreciation, Amortization and Restructuring (EBITDAR) stood at ₹6,059 crore. This marks a 10.7% rise over last year's ₹5,475 crore for the same period.
Business growth
IndiGo's EBITDAR margin and passenger capacity increase
Despite the financial challenges, IndiGo's EBITDAR margin remained at 27.4% in Q3 FY25, a slight decline from 28.1% in the same period last year. The airline's Available Seat Kilometers (ASK)—an airline's passenger carrying capacity—witnessed a 12% YoY jump to 4,080 crore from 3,650 crore. This shows that despite the financial headwinds, IndiGo has been able to expand its operational capacity significantly over the last year.