In intraday trade on Tuesday, shares of InterGlobe Aviation, which operates the largest airline in the nation, IndiGo, rose 3% on the BSE and reached a record high of Rs 2,539.80 on hopes of robust earnings growth. The stock has surpassed the previous high it reached on June 23 of Rs 2,507.95. The stock has soared 26% during the last two months.
A significant increase in InterGlobe Aviation’s (IndiGo) stock price has brought the company’s market capitalization (market cap) within striking distance of crossing the Rs 1 trillion threshold. In intraday trade, IndiGo’s market valuation reached Rs 97,921 crore and was only 2% short of the milestone.
According to IndiGo, capacity in terms of ASKs is anticipated to rise by about 5–7% for the current quarter, or the first quarter (April–June) of fiscal year 2023–2024, in comparison to the fourth quarter of fiscal year 2023.
However, ignoring the effects of foreign exchange, IndiGo recorded a profit for the fiscal year 2022–2023 (FY23) of Rs 2,654 crore. IndiGo recorded a net loss of Rs. 306 crore for the year, including the impact of foreign exchange. The corporation claimed that the earnings from the third and fourth quarters more than made up for the losses from the first and second quarters.
Among the low-cost carriers with the quickest global growth is IndiGo. The company delivered a great operational and financial performance for the second consecutive quarter, reporting the highest-ever fourth-quarter net profit of Rs 919 crore, thanks to a combination of strong market demand and strategy execution that was laser-focused.
In the largest single-tranche aircraft acquisition transaction ever, IndiGo said last week that it had placed an order with Airbus for 500 aircraft. The total number of aircraft still on order for IndiGo is currently close to 1,000, with 480 having already been purchased. With this latest purchase, IndiGo has placed 1,330 orders with Airbus overall since the airline was founded in 2006.
The exact aircraft configuration and engine selection for IndiGo’s order book, which includes the A320NEO, A321NEO, and A321XLR, will be decided soon. In addition to operating over 300 aircraft, IndiGo has 480 aircraft on order, with 500 of those scheduled to arrive between 2030 and 2035.
According to Prabhudas Lilladher analyst, IndiGo may continue to thrive for years to come by maintaining its operational cost reduction, fuel economy, and sustainability goals with the fuel-efficient A320NEO Family of aircraft.
