 "Aviation stocks gain; IndiGo hits new high on strong Q4 results")
Shares of aviation companies were in focus with InterGlobe Aviation, the operator of IndiGo, hitting a new high of Rs 1,716, up 3 per cent, on the BSE in Tuesday's early morning trade, after its quarterly profit surged five-fold in March quarter (Q4FY19).
SpiceJet's stock, too, rallied 5 per cent to Rs 153, and was trading close to its record high of Rs 156, hit on December 20, 2017, in intra-day trade.
IndiGo posted a net profit of Rs 589 crore in Q4FY19, as the airline flew more passengers and clocked higher yields. The company had recorded a profit of Rs 118 crore in the year-ago quarter.
Revenue during the period grew nearly 36 per cent to Rs 7,883 crore from Rs 5,799 crore in the corresponding quarter of previous fiscal. EBITDAR (earnings before interest, taxes, depreciation, amortisation and rent /restructuring) margin improved to 27.8 per cent from 19.5 per cent in the same period last year.
However, for the entire financial year 2018-19, IndiGo’s reported a sharp 93 per cent year-on-year decline in net profit at Rs 156 crore, as compared to Rs 2,242 crore in 2017-18.
The management said the 2019 fiscal was a tough year for the airline industry in India because of high fuel prices, weak rupee and intense competitive environment. However, it is a tale of two halves for IndiGo, with the first half of the year incurring losses and the second half of the year experiencing a sharp recovery.
IndiGo and other low-cost airlines like SpiceJet have gained passengers in recent weeks after the grounding of Jet Airways. The board of directors of SpiceJet is scheduled to meet today to consider Q4FY19 results.
Analysts at Elara Capital changed the stock's rating from 'Buy' to ‘Accumulate’ with a revised target price of Rs 1,927 from Rs 1,945 as the stock has run up by 49 per cent in past three months.
The brokerage firm reduced EPS for FY20E by 8 per cent and FY21E by 1 per cent on lower FY20 capacity growth at 30 per cent from 45 per cent as per guidance.
“As we enter a seasonally strong quarter amidst market tightness we expect Q1 of FY20 to start with record profitability. At current market price the stock trades at 8.8x FY21 EV/EBITDAR, which offers limited room for multiple expansion,” analysts at SBICAP Securities said in result update with ‘buy’ rating on the stock and target price of Rs 1,719.
SpiceJet's stock, too, rallied 5 per cent to Rs 153, and was trading close to its record high of Rs 156, hit on December 20, 2017, in intra-day trade.
IndiGo posted a net profit of Rs 589 crore in Q4FY19, as the airline flew more passengers and clocked higher yields. The company had recorded a profit of Rs 118 crore in the year-ago quarter.
Revenue during the period grew nearly 36 per cent to Rs 7,883 crore from Rs 5,799 crore in the corresponding quarter of previous fiscal. EBITDAR (earnings before interest, taxes, depreciation, amortisation and rent /restructuring) margin improved to 27.8 per cent from 19.5 per cent in the same period last year.
However, for the entire financial year 2018-19, IndiGo’s reported a sharp 93 per cent year-on-year decline in net profit at Rs 156 crore, as compared to Rs 2,242 crore in 2017-18.
The management said the 2019 fiscal was a tough year for the airline industry in India because of high fuel prices, weak rupee and intense competitive environment. However, it is a tale of two halves for IndiGo, with the first half of the year incurring losses and the second half of the year experiencing a sharp recovery.
IndiGo and other low-cost airlines like SpiceJet have gained passengers in recent weeks after the grounding of Jet Airways. The board of directors of SpiceJet is scheduled to meet today to consider Q4FY19 results.
Analysts at Elara Capital changed the stock's rating from 'Buy' to ‘Accumulate’ with a revised target price of Rs 1,927 from Rs 1,945 as the stock has run up by 49 per cent in past three months.
The brokerage firm reduced EPS for FY20E by 8 per cent and FY21E by 1 per cent on lower FY20 capacity growth at 30 per cent from 45 per cent as per guidance.
“As we enter a seasonally strong quarter amidst market tightness we expect Q1 of FY20 to start with record profitability. At current market price the stock trades at 8.8x FY21 EV/EBITDAR, which offers limited room for multiple expansion,” analysts at SBICAP Securities said in result update with ‘buy’ rating on the stock and target price of Rs 1,719.
One subscription. Two world-class reads.
Already subscribed? Log in
Subscribe to read the full story →*Subscribe to Business Standard digital and get complimentary access to The New York Times
Smart Quarterly
₹900
3 Months
₹300/Month
SAVE 25%
Smart Essential
₹2,700
1 Year
₹225/Month
SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months
Super Saver
₹3,900
2 Years
₹162/Month
Subscribe
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
SAVE 25%