 "IndiGo hits three-month high ahead of Q4 results")
InterGlobe Aviation, which operates the IndiGo airline, was trading higher by 1% at Rs 1,057, extending its 5% gain in past four trading sessions on the BSE in otherwise weak market, ahead of its January – March (Q4) quarter earnings tomorrow.
A meeting of the board of directors of the company will be held on April 29, 2016, to consider and approve the audited financial results of the company for the quarter and year ended March 31, 2016 and to recommend a final dividend, if any, for the financial year ended March 31, 2016, IndiGo said in a regulatory filing.
The stock hit an intra-day high of Rs 1,069, its highest level since January this year, recovering 52% from its 52-week low of Rs 702 touched on February 11, 2016. The S&P BSE Sensex was down 1.4% or 365 points at 25,699 at 02:40 pm.
Shares of low-cost carrier IndiGo almost halved from its 52-week high of Rs 1,396 and fell below its issue price of Rs 765 per share, after weak October-December (Q3) results coupled with the delay in deliveries of Airbus A320neo aircraft saw analysts slashing the earnings estimates.
“In the fourth quarter of fiscal year 2016, while year on year (YoY) capacity is expected to grow by about 19%, EBITDAR margins are expected to be strong at around 35% to 37% and at last year’s levels. However, for the fourth quarter, YoY revenue is expected to increase by 6% to 8% and net profit will also be impacted due to the exchange rate movement in the Indian Rupee versus the US Dollar,” Motilal Oswal Securities said in a note.
The brokerage house maintains ‘buy’ rating on the stock with a target price of Rs 1,404.
“Indian air passenger growth remains strong, with YTDFY16 domestic passenger/revenue passenger kilometer (RPK) growth at 24%/22% (33%/29% for Indigo). The company received three A320neo aircraft in March 2016 and expects its fleet to increase from 107 to 131 by end-FY17. Given its firm fleet addition plans, we believe IndiGo will benefit the most,” added report.
Kotak Institutional Equities expect revenues to increase by 7% yoy, in line with the management guidance, while PAT to decline by 12% yoy, on account of Indian rupee depreciation-led hit on rentals depreciation expenses.
“We expect 20%+ growth in pax volumes leading to healthy utilisation of around 85%. Aviation turbine fuel (ATF) prices have also seen a correction going in to the quarter which should aid margins. However, owing to an adverse base quarter of Q4FY15 and seasonally weak Q4 correction in yield expected to be much higher than the industry and hence YoY the numbers would still be little lower,” Edelweiss Securities said in quarterly preview.
A meeting of the board of directors of the company will be held on April 29, 2016, to consider and approve the audited financial results of the company for the quarter and year ended March 31, 2016 and to recommend a final dividend, if any, for the financial year ended March 31, 2016, IndiGo said in a regulatory filing.
The stock hit an intra-day high of Rs 1,069, its highest level since January this year, recovering 52% from its 52-week low of Rs 702 touched on February 11, 2016. The S&P BSE Sensex was down 1.4% or 365 points at 25,699 at 02:40 pm.
Shares of low-cost carrier IndiGo almost halved from its 52-week high of Rs 1,396 and fell below its issue price of Rs 765 per share, after weak October-December (Q3) results coupled with the delay in deliveries of Airbus A320neo aircraft saw analysts slashing the earnings estimates.
“In the fourth quarter of fiscal year 2016, while year on year (YoY) capacity is expected to grow by about 19%, EBITDAR margins are expected to be strong at around 35% to 37% and at last year’s levels. However, for the fourth quarter, YoY revenue is expected to increase by 6% to 8% and net profit will also be impacted due to the exchange rate movement in the Indian Rupee versus the US Dollar,” Motilal Oswal Securities said in a note.
The brokerage house maintains ‘buy’ rating on the stock with a target price of Rs 1,404.
“Indian air passenger growth remains strong, with YTDFY16 domestic passenger/revenue passenger kilometer (RPK) growth at 24%/22% (33%/29% for Indigo). The company received three A320neo aircraft in March 2016 and expects its fleet to increase from 107 to 131 by end-FY17. Given its firm fleet addition plans, we believe IndiGo will benefit the most,” added report.
Kotak Institutional Equities expect revenues to increase by 7% yoy, in line with the management guidance, while PAT to decline by 12% yoy, on account of Indian rupee depreciation-led hit on rentals depreciation expenses.
“We expect 20%+ growth in pax volumes leading to healthy utilisation of around 85%. Aviation turbine fuel (ATF) prices have also seen a correction going in to the quarter which should aid margins. However, owing to an adverse base quarter of Q4FY15 and seasonally weak Q4 correction in yield expected to be much higher than the industry and hence YoY the numbers would still be little lower,” Edelweiss Securities said in quarterly preview.
