IndiGo’s cash burn dips in Q3, but skies remain hazy and yields low
InterGlobe Aviation Ltd’s December quarter results show that its post-pandemic recovery will be a slow and long-drawn-out process. Revenue from operations fell 50.6% to ₹4,910 crore, on the back of a 50% decline in passenger volumes. InterGlobe runs India’s largest airline, IndiGo.
The company also reported a loss of ₹626 crore, which is higher than the ₹438 crore loss the Street was expecting, according to a Bloomberg poll.
To be sure, there is a gradual improvement. The company said on a call with analysts that its daily cash burn dropped to ₹15 crore in the December quarter, compared to ₹25 crore in the September quarter and ₹30 crore in the June quarter. However, given that the March quarter is a seasonally leaner one, one cannot take it for granted that this trend of improvement will sustain. Besides, crude oil prices are relatively stronger now.
