IndiGo promoter InterGlobe Aviation will be reporting its Q4FY19 numbers today.
IndiGo is expected to have a good quarter. Jet Airways has been grounded because of which a lot of the business moved to other players like IndiGo and SpiceJet, boosting their business. Passenger growth has been healthy — at 20 percent — and both IndiGo and SpiceJet have had steep fare hikes in the quarter gone by in order to capitalise on Jet’s grounding.
IndiGo has seen a 14 percent price hike in the last quarter and that will result into better yields. Revenue growth of around 30 percent is expected because of the strong passenger growth.
EBITDA is expected to go up by 88 percent, margins will likely improve substantially to almost 27 percent and profits will go up 4 times to come in at Rs 470 crore.
The other positive is that aviation turbine fuel (ATF) prices are down about 1 percent year-on-year (YoY). So almost everything is piecing in together well for IndiGo which is the reason behind the stock rallying about 50 percent in the last six months.
Overall, a good quarter is expected for the domestic carrier.
- Expect a strong quarter on the back of better yields
- Revenue growth strong at 32 percent driven by passenger growth of 25 percent (YoY)
- Recovery in yields and decline in crude prices to drive margin recovery
- Rupee appreciation expected to aid airlines in reporting MTM gains
- Expected to end FY19 with a profit