☎️ Con-call Highlights  - #InterGlobeAviation Ltd

**IndiGo Airlines Q3 FY2025 Earnings Call Key Takeaways**

**Current Financial Performance (Q3 FY2025):**

* **Total Income:** INR 230 billion (up 15% YoY)
* **Profit After Tax (excluding forex impact):** INR 38.5 billion (up 26.1% YoY)
* **Profit After Tax (including forex impact):** INR 24.5 billion (down 18.3% YoY)
* **EBITDAR:** INR 60.59 billion (27.4% margin)
* **EBITDAR (excluding forex impact):** INR 74.56 billion (33.7% margin)
* **Forex Gain (hedging):** INR 591 million
* **Forex Loss (mark-to-market):** INR 14 billion

**Operational Performance (Q3 FY2025):**

* **Passenger Growth:** 31.1 million passengers (up 12.7% YoY, highest ever quarterly number)
* **Capacity (ASK):** Increased by 12% YoY
* **Passenger Revenue (PRASK):** INR 4.72 (up 0.3% YoY)
* **Yield:** INR 5.43/km (down 1% YoY)
* **Load Factor:** 86.9% (up 1.2 percentage points YoY)
* **Peak Daily Flights:** 2,200 (including non-scheduled flights)
* **On-Time Performance:** 73.3% at four key metros
* **Flight Cancellation Rate:** 0.97%
* **Destinations:** 89 domestic, 34 international (4 new international destinations added)
* **Fleet:** 437 aircraft (net increase of 27 passenger aircraft during the quarter; includes damp-leased and secondary leased aircraft)

**Future Outlook:**

* **Q4 FY2025 Capacity Growth:** Expected to increase by around 20% YoY (due to a low base in Q4 FY2024)
* **Yield (Q4 FY2025):** Expected to moderate in the low single digits YoY
* **AOG Groundings:** Currently trending downwards in the 60s; expected to be in the 40s at the start of the next financial year, further decreasing as the year progresses.
* **International Expansion:** Aiming for at least 40 international destinations by the end of the year.
* **IndiGo Stretch (Business Class):** Expanding to 10 more metro-to-metro routes in FY2025, with a total of 40-45 aircraft in this configuration.
* **Long-Range Aircraft:** Exploring interim solutions, subject to regulatory approvals, for earlier introduction through wet leases.

**Concerns:**

* **Forex Impact:** Rupee depreciation negatively impacted profitability. Management is actively hedging forex exposure and expects natural hedges to improve with increasing international capacity.
* **Cost Pressures:** Issues including forex depreciation, VAT increases, a higher number of CEOs in operation, and congestion at key airports are impacting costs.

**Other Important Points:**

* **Strong Demand:** Notable growth in air travel demand during Q3 due to festive periods and increased consumer spending, expected to continue.
* **Operational Efficiency:** Improved performance compared to the previous winter season, with better schedules and lower disruption days.
* **Sustainability:** Ongoing focus on sustainability through a modern, fuel-efficient fleet and other initiatives.
* **Awards and Recognition:** Received accolades including "Airline of the Year" by CAPA.
* **Loyalty Program:** Recently launched and receiving positive feedback.
* **Ancillary Revenue Growth:** 22.3% YoY, bolstered by new digital initiatives like hotels still in early stages.

* Machine generated highlights, exercise diligence

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