IndiGo Q1 profit soars to record

InterGlobe Aviation Ltd, the operator of India’s largest airline IndiGo, reported record quarterly profit and revenue on robust demand for air travel, lower fuel costs, and favourable foreign currency movement

- Anu Sharma

Net profit rose to ₹3,090.6 crore in the quarter ended 30 June from a loss of ₹1,064.3 crore. Total income rose by 32% to ₹17,161 crore from a year earlier.

The airline also said it plans to make early investments in aviation-related companies, and will look at acquiring assets such as aircraft and engines to make better use of its cash flows. As of 30 June, India’s largest airline had free cash amounting to ₹15,691 crore, up 89% from the previous quarter.

“Given our strong liquidity position, we are also planning to invest in some aircraft and related assets. Further, subject to regulatory approvals, we are also planning on launching a venture capital arm to invest in early-stage firms operating in aviation, consumer-focused and allied sectors such as travel, lifestyle, hospitality, and transportation. Given our large consumer base, we believe these investments will help us add value to the airline," chief financial officer Gaurav Negi told analysts in the post-earnings conference call.