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InterGlobe Aviation Limited Q4 FY22 Earnings Concall Insights

#INDIGO #INDIGOQ4 #InterGlobeAviation #concall #concalls #insights #results #stocks #TrendingStocks #earnings #stockmarketindia #StockToWatch #finance #stockmarket #Markets
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INDIGO said it swung from a profitable 3Q22 to a loss-making 4Q22 because of about 15% higher fuel prices and on 11% lower capacity due to Omicron and a lower RASK of 2.9%.

In 1Q23, INDIGO expects the capacity to rebound at almost 2.5 times the capacity deployed in 1Q22.

Q&A Insights: Binay Singh from @MorganStanley asked about the forex loss being much larger than anticipated. Gaurav Negi CFO said that the forex impact has been around INR600 crores, which is largely because the rupee weakening approx. 2 points between Dec. and Mar.

Q&A Insights: Deepika Mundra of @jpmorgan asked about yield and how much of the delta would be potentially from the reopening of international flights. Gaurav Negi CFO replied that international profitability has been stronger than domestic and it always is.

Q&A Insights: Deepika M of @jpmorgan asked about INDIGO’s intl. vs. domestic capacity increase for FY23. Ronojoy D CEO said short-term, there is a lot of volatility. Overall, pre-COVID, INDIGO’s capacity was 25% of its system. Five years from now, intl. is expected at about 40%.

Q&A Insights: Mitul Shah with Reliance Securities asked about the impact on the traffic side with a sharp price hike on the ticket side. Ronojoy Dutta CEO said that it’s a balancing game. INDIGO added that there will be load factor pressure as it increase prices.

Q&A Insights: Mitul S of Reliance Securities asked that after the capacity utilization and capacity increase for FY23 if it’s close to pre-COVID level or even higher. Ronojoy D CEO clarified that it’s already higher than pre-COVID levels. It's going to be close to 13-17% higher.

Q&A Insights: Chintan Sheth of @sameeksha_cap asked about INDIGO’s take on yield and how it will pan out. Ronojoy CEO said the industry has been behaving quite rationally. INDIGO expects the rational behavior to continue and wouldn't see any crazy price wars or anything like that

Q&A Insights: Chintan Sheth of @sameeksha_cap asked about run rate of employee cost going forward. Ronojoy CEO said that on employee costs, INDIGO has some snapback in wages and it's not over yet. So rates will go up as far as productivity goes. Absolute fares could also go up.

To read further on the detailed analysis of #INDIGO #Q4 concall Q&A …

alphastreet.com/india/interglo…