Interglobe Aviation Q4 results preview: IndiGo airline operator likely to report 39% fall in profit

Interglobe Aviation Q4 results date: Interglobe Aviation — which owns and operates airline IndiGo— is all set to report its financial results for the quarter ended March 2023 on May 18, Thursday. Analysts expect the company to stage a largely weak quarterly performance owing to shrinking passenger load factor. According to Zee Business research, Interglobe Aviation is likely to report a consolidated net profit of Rs 872.9 crore for the three-month period, which translates to a fall of 38.6 per cent compared with the corresponding period a year ago.

The analysts estimate the company’s revenue to contract eight per cent to Rs 13,736.4 crore. Interglobe Aviation is expected to report a 21.9 per cent year-on-year fall in earnings before interest, taxes, depreciation and amortisation (EBITDA) to Rs 2,652.6 crore. They estimate its margin — a key measure of profitability for a business — to decrease by 349 basis points to 19.31 per cent. 

Investors will closely look out for the management’s commentary on aircraft replacement as well as addition and its outlook on travel. According to the research, the airline’s passenger load factor —  a measure of how efficiently a carrier fills its seats to generate money — is pegged at 80 per cent for the March quarter as against 85.1 per cent for the previous three months. However, the airline is likely to register six per cent sequential growth in passenger traffic in the domestic market, according to Zee Business research.  

Interglobe Aviation shares: Historical performance   

Interglobe shares finished the March quarter with a loss of 4.8 per cent, in line with a 4.1 per cent decline in the Nifty headline index. As of May 17, the Interglobe Aviation stock has gained nearly 36 per cent in one year, sharply outperforming a 12 per cent rise in the index. 

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