New Delhi: Budget carrier IndiGo’s dismal Q1 performance is likely to keep the company’s stock in focus on Monday, after the airline reported a 12 per cent decline in profit after tax to Rs 2,728.8 crore, compared to Rs 3,090.6 crore in the year-ago period.
IndiGo cited a jump in costs led by fuel prices as the reason behind the decline in net profit as its Q1 total income rose 18 per cent to Rs 20,248.9 crore from Rs 17,160.9 crore in the year-ago period. However, the comoany incurred costs to the tune of Rs 17,444.9 crore during the period under consideration.
“Currently, we are experiencing a higher inflationary environment… it is across the board we are experiencing, nonetheless, we are looking at ways on how to control the costs,” said IndiGo CFO Gaurav Negi.
IndiGo expansion plans
To be sure, the budget did not pare back on its expansion plans, saying that the introduction of business class and introduction of flights on newer routes, including long-haul flights. The airline enjoys a 61 per cent market share with 975 jets in the pipeline. IndiGo currently operates 382 planes, which includes 18 wet-leased aircraft.
At the same time, IndiGo announced plans to induce Boeing 737 Max jets from Qatar Airways to operate bulk flights to Doha, Qatar. Qatar Airways and IndiGo have a codeshare agreement in place. This is the second move by IndiGo to opt for Boeing on an international route after 2 Boeing 777s that are operated exclusively on the Istanbul route in partnership with Turkish Airlines.
IndiGo’s domestic market share
IndiGo’s market share in India’s domestic aviation market stood at 60.8 per ent in June, up from 61.6 per cent in May.
The airline ferried 80.30 lakh passengers during the month, which was down 5 lakh passengers month-on-month.
IndiGo share price history and share price target
IndiGo’s share price was up 1.15 per cent to Rs 4,483 apiece on Friday, July 27, 2024.
IndiGo’s stock jumped 3.90 per cent in the past 5 days
In the past month, the airline’s stock was up 6.19 per cent
In the past 6 months, IndiGo’s scrip was up 54.80 per cent
IndiGo’s share price rose 75.81 per cent in the past year
To be sure, there’s still some headroom for IndiGo’s stock to grow.
ICICI Securities has a BUY call on IndiGo.
Nuvama has a Buy call on the stock with a share price target of RS 5,192.
Emkay Global gave a share price target of RS 5,000 on the airline’s stock.
JM Financial’s share price target for IndiGO is Rs 4,800 apiece with a HOLD rating.
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IndiGo’s Q1 net profit down declined 12% to Rs 2,278.8 crore in FY25. Know how the stock is likely to perform on Monday, July 29, 2024. Biz News Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
