Interglobe Aviation Reports Strong Q3 Sales Amid Profitability Challenges in FY24-25

Jan 24 2025 06:30 PM IST
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Interglobe Aviation's third-quarter FY24-25 financial results reveal a mixed performance, with record net sales and operating profit. However, profitability faced challenges, as profit before tax and profit after tax both declined year-on-year. The company's reliance on non-operating income raises concerns about its long-term business sustainability.
Interglobe Aviation has released its financial results for the third quarter of FY24-25, showcasing a nuanced performance. The company achieved net sales of Rs 22,110.70 crore, marking the highest quarterly figure in the last five quarters. Additionally, the operating profit (PBDIT) reached Rs 5,178.60 crore, also the highest in the same timeframe, suggesting a favorable near-term trend in sales and operating profit.

Conversely, the company encountered notable challenges regarding profitability. The profit before tax (PBT), excluding other income, declined to Rs 1,645.00 crore, reflecting a year-on-year reduction. Similarly, the profit after tax (PAT) fell to Rs 2,448.80 crore, indicating a decrease compared to the previous year. The significant reliance on non-operating income, which accounted for a substantial portion of PBT, raises questions about the long-term viability of the business model. Non-operating income reached Rs 882.10 crore, the highest in the last five quarters, underscoring the company's dependence on income from non-core activities. Overall, Interglobe Aviation's financial results present a complex picture, highlighting both positive sales trends and considerable profitability challenges.

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