IndiGo Reports 18.6% Decline in Q3 Profit at Rs 2,448.8 Crore
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Synopsis
InterGlobe Aviation, the parent company of IndiGo, has reported an 18.6% decline in consolidated net profit for Q3 FY25, reaching Rs 2,448.8 crore due to rising expenses. The airline's operational revenue grew by 13.7%, reaching Rs 22,110.7 crore, despite challenges faced in Q2 FY25.
Key Takeaways
- 18.6% profit drop in Q3 FY25
- Net profit at Rs 2,448.8 crore
- 20% increase in expenses
- Operational revenue grew by 13.7%
- IndiGo's market share at 64.4%
Mumbai, Jan 24 (NationPress) InterGlobe Aviation, the parent company of IndiGo, announced a 18.6% decrease in its consolidated net profit for the third quarter (Q3) of the financial year 2024-25 (FY25).
The net profit stood at Rs 2,448.8 crore in Q3, a decline from Rs 2,998.1 crore during the same timeframe last year.
This profit drop was primarily attributed to a 20% surge in expenses, which escalated to Rs 20,466 crore, compared to Rs 17,064 crore in the prior year.
Consequently, the airline’s profit after tax (PAT) margin decreased by 430 basis points to 11.1%, down from 15.4% in Q3 FY24.
Despite the profit decline, the budget airline reported a 13.7% increase in operational revenue, reaching Rs 22,110.7 crore, compared to Rs 19,452.1 crore in Q3 FY24.
On a sequential basis, the low-cost carrier's revenue surged by 30%, having reported lower revenue of Rs 16,970 crore in Q2 FY25. However, the company still faced a net loss of Rs 987 crore in the July-September quarter.
IndiGo’s EBITDAR (Earnings Before Interest, Taxes, Depreciation, Amortisation, and Restructuring) improved by 10.7%, reaching Rs 6,059 crore in Q3, compared to Rs 5,475 crore in the same quarter last year.
In Q2 FY25, the company experienced a significant net loss of Rs 986 crore, contrasting with a net profit of Rs 188 crore in Q2 FY24.
Meanwhile, India’s domestic air passenger traffic increased by 6.12% to 16.13 crore in 2024 from 15.2 crore the previous year, according to data from the Directorate General of Civil Aviation (DGCA).
As of December, IndiGo held a market share of 64.4%, while Air India reached 26.4%.
