Shares of InterGlobe Aviation, the parent of IndiGo, zoomed nearly 10% after the firm posted a profit after tax of INR 129.8 crore in the three months ended December 2021.
The stock jumped 9.91% to settle at INR 2,170.05 on BSE. During the day, it gained 10.57% to INR 2,183.15. It zoomed 9.91% to close at INR 2,170.10 on NSE.
On the volume front, 1.56 lakh shares were traded on BSE and 44.81 lakh on NSE. Fuelled by higher passenger revenues, the country’s largest airline IndiGo on Friday, February 4 posted a profit after tax of INR 129.8 crore in the three months ended December 2021 amid the pandemic clouds.
InterGlobe Aviation, the parent of IndiGo, had slipped into a loss of INR 620.1 crore in the year-ago period. In a significant development, the company has appointed its co-founder Rahul Bhatia as Managing Director with immediate effect and he would oversee all aspects of the airline.
Reflecting signs of slow recovery in the pandemic-hit airline industry, IndiGo’s revenue from operations jumped to INR 9,294.8 crore in the latest December quarter compared to INR 4,910 crore in the same period a year ago.
Total income surged 84.3% on an annual basis to INR 9,480.1 crore in the third quarter of the current fiscal year.
“For the quarter, our passenger ticket revenues were INR 80,731 million, an increase of 98.4% and ancillary revenues were INR 11,417 million, an increase of 41.3% compared to the same period last year,” it said in a statement.
Further, Indigo’s focus on long-term relationships with stakeholders, including lessors and employees, would also be positive once the Covid-19 impact subsides.
Moreover, in the longer term, Ambit continues to believe Indigo’s strategy to focus away from metro routes and expand into Tier-2/Tier3 domestic routes and international routes would ultimately bear fruit (both are higher-yielding compared to metro routes).