IndiGo Share Price Drops 8.25%; Reports 14.6% Revenue Growth in Q2 FY25 Financial Results

InterGlobe Aviation Limited, the parent company of IndiGo, has released its financial results for the second quarter of fiscal year 2025, ending September 30, 2024. 

IndiGo Q2 FY 2025 Financial Highlights

The airline reported a total income of ₹177.6 billion, marking an increase of 14.6% compared to the same period last year. This growth is attributed to higher passenger ticket revenues and an increase in ancillary income, reflecting the company’s ability to adapt to market demands despite ongoing challenges.

Passenger ticket revenues reached ₹143.6 billion, representing a 9.9% increase year-over-year. Additionally, ancillary revenues, which include services such as baggage fees and in-flight purchases, rose by 20.9% to ₹18.8 billion. 

However, despite these positive revenue figures, IndiGo reported a net loss of ₹9.9 billion for the quarter, a significant downturn from a net profit of ₹1.9 billion during the same period last year. This loss has been primarily driven by escalating fuel costs and an unprecedented number of aircraft groundings, although the airline has begun to see a reduction in these groundings.

As of September 30, 2024, IndiGo’s financial position remains robust, with a total cash balance of ₹393.4 billion. This comprises ₹243.6 billion in free cash and ₹149.8 billion in restricted cash. However, the company also reported a capitalised operating lease liability of ₹477.8 billion, leading to a total debt load (including lease liabilities) of ₹592.4 billion. 

Investment Plan of ₹295 crore

In a strategic move, IndiGo’s board has approved an investment of up to ₹295 crore in IndiGo Ventures Fund – I, an initiative designed to support early-stage start-ups within the aviation and allied sectors. The scheme, which falls under the Alternative Investment Fund Trust, aims to invest primarily in pre-Series A, Series A, and Series B stage companies. The fund is targeted to have a corpus of ₹300 crore, with the potential for an additional ₹300 crore green shoe option, allowing for further investments as needed.

This investment is expected to be executed over the next three to four years in multiple tranches. 

On October 28, 2024, IndiGo share price opened at ₹4,200.00, down from its previous close of ₹4,366.10. At 11:29 AM, the share price of IndiGo was trading at ₹4,005.95, down by 8.25%.

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