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.com The 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
Read More