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Quarterly results forecast: IndiGo likely to post a profit; SpiceJet may slip into loss

Industry watchers say IndiGo may eke out a small profit in the September quarter, but SpiceJet will likely post a loss, with the estimate varying widely between INR100 crore and INR490 crore. While IndiGo largely gains on fuel prices, SpiceJet will be hit because of rapid expansion with old Jet Airways planes and grounded MAX planes.
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tarunshukla
23 Oct 2019 5 Mins Read 2 comments
(From left) Ajay Singh of SpiceJet and Rahul Bhatia of IndiGo; courtesy of BCCL and Getty Images
(From left) Ajay Singh of SpiceJet and Rahul Bhatia of IndiGo; courtesy of BCCL and Getty Images
Last year, India’s three listed airlines had entered the second quarter with gloom written all over their boardrooms. While Jet Airways and SpiceJet had announced first-quarter losses to the tune of nearly INR1,323 crore and INR38 crore, respectively, IndiGo’s profit had slipped 97% to INR28 crore from a year-ago period. On cue, the second quarter, which is traditionally lean
around INR120 now — a rise of nearly 70% — valuing the 111-plane airline at INR8,400 crore. IndiGo’s stock has more than doubled from INR831 to INR1,724 — a jump of 107% — valuing the 247-plane airline at a whopping INR66,000 crore. And the company’s next target will be to pull off a sober Q3 despite an economic slowdown.
Last year, India’s three listed airlines had entered the second quarter with gloom written all over their boardrooms. While Jet Airways and SpiceJet had announced first-quarter losses to the tune of nearly INR1,323 crore and INR38 crore, respectively, IndiGo’s profit had slipped 97% to INR28 crore from a year-ago period. On cue, the second quarter, which is traditionally lean around INR120 now — a rise of nearly 70% — valuing the 111-plane airline at INR8,400 crore. IndiGo’s stock has more than doubled from INR831 to INR1,724 — a jump of 107% — valuing the 247-plane airline at a whopping INR66,000 crore. And the company’s next target will be to pull off a sober Q3 despite an economic slowdown.

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