Synopsis
Many companies will announce their December quarter results today. IndiGo’s earnings are expected to be mixed. Revenue is predicted to grow, but profits may fall. This is due to higher costs and lower ticket prices. Other key companies like Adani Green and DLF will also share their financial performance. Investors are watching these announcements closely for market direction.
Listen to this article in summarized format
ETMarkets.comThe December quarter earnings season continues on Thursday with as many as 57 companies set to announce their Q3 results. Key results to watch out for include IndiGo, Adani Green, Adani Total Gas, DLF, Bandhan Bank and ZEEL.
Apart from these, companies such as Mphasis, APL Apollo Tubes, Radico Khaitan, Premier Energies, Go Digit General Insurance, IIFL Finance will also report their quarterly numbers.
What to expect from IndiGo Q3 results
IndiGo is expected to report a mixed set of numbers for the December quarter, with brokerages pencilling in steady revenue growth but a year-on-year decline in profitability as yields soften and cost pressures remain elevated.
According to an average of four brokerages, IndiGo’s revenue for the third quarter is seen rising about 16% YoY, supported by continued capacity addition and resilient passenger demand. However, profit after tax is estimated to decline 17% YoY, reflecting lower fares, operational disruptions and higher fuel and forex-related costs.
Q3 Results: Catch all the LIVE updates of major earnings here
Brokerages expect capacity growth to moderate during the quarter. Kotak Equities estimates an 8% YoY increase in available seat kilometres (ASKs), at the lower end of management guidance, partly due to mass flight cancellations in December. Load factors are expected to decline by around 150 basis points YoY to about 85.5%. Kotak also factors in a 3% YoY decline in yields, again at the lower end of the airline’s guidance.
JM Financial expects ASK growth of around 11% YoY, below earlier expectations, citing recent operational disruptions. Passenger yields are seen declining 3–4% YoY, in line with IndiGo’s revised PRASK contraction guidance. Motilal Oswal projects ASKs of 44.8 billion, up 10% YoY, with passenger load factor easing to 86.5% from 87% a year ago and revenue passenger kilometres rising 9.4% YoY.
Margins are expected to compress sharply compared with last year’s strong base. Kotak Equities estimates RASK less CASK at Rs 0.38 per ASK for the quarter, sharply lower than Rs 0.76 per ASK in the year-ago period. The brokerage attributes this to softer yields and a slightly inferior cost structure, including higher pilot costs.
JM Financial highlights persistent cost headwinds, with aviation turbine fuel prices up 5.7% QoQ and the rupee depreciating around 2.1% QoQ. This is likely to result in forex losses of over Rs 9 billion for the quarter. As a result, the brokerage expects PBT per ASK of around Rs 0.65 and estimates quarterly PAT at roughly Rs 28 billion, implying a muted seasonal performance.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
(What’s moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)
Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today.
Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price
…moreless
(You can now subscribe to our ETMarkets WhatsApp channel)
(What’s moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)
Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today.
Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price
…moreless