Home Finance Indigo returns to black in Q4, Tata Elxsi profit meets estimates-earnings

Indigo returns to black in Q4, Tata Elxsi profit meets estimates-earnings

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Indigo returns to black in Q4, Tata Elxsi profit meets estimates-earnings

Indigo’s Q4 Results: From Red to Black

Indian airline, Indigo, has reported a net profit of INR 589.6 crore ($78.7 million) for the fourth quarter of the financial year ending 31 March 2023. This marks a significant improvement from the INR 620.6 crore ($83 million) loss posted in the same period last year. Furthermore, the airline credits this performance to the increase in passenger revenue, which increased by over 200% year-on-year to INR 6,840 crore ($915 million).

Revenue Operating Expenses and Capacity Indicators

During the quarter, the airline’s revenue from operations rose by 179.8% YoY to INR 7,326.2 crore ($977 million), while its operating expenses increased by 95.2% YoY to INR 6,463.4 crore ($863 million). The airline’s earnings before interest, taxes, depreciation, amortization, and rent (EBITDAR) surged by INR 1,580 crore ($211 million) to INR 1,853.6 crore ($247 million). Additionally, the carrier’s capacity increased by 66.2% YoY, with the number of departures and passengers carried up 57% and 61%, respectively.

Indigo’s CFO’s Statement

According to Indigo’s Chief Financial Officer, Jiten Chopra, the profit surge was mainly due to the low base effect of last year’s Q4 loss. Chopra added that operating expenses increased due to higher fuel prices and airport fees, which rose significantly during Q4 2023. Furthermore, he noted that the airline had been cautious in adding capacity and only increased it from November 2022 onwards due to robust market demand.

Indigo: A Struggle With Covid-19

Indigo struggled amid the pandemic, with the airline posting losses in each of the preceding five quarters. The carrier had to reduce its capacity by 45% in the first half of the financial year due to the reduced demand resulting from the pandemic. Indigo’s management took various cost-cutting measures, such as grounding aircraft, cutting employee salaries, and freezing recruitment. The airline’s balance sheet was further strengthened by a capital infusion in March 2022, with its parent, InterGlobe Aviation, selling a 20% stake for INR 3,000 crore ($400 million) to a group of private equity firms.

Tata Elxsi Meets Expectations in Q4

Meanwhile, technology company Tata Elxsi reported a net profit of INR 120.5 crore ($16 million) for the quarter ending March 2023. This is around 4% above estimates, thanks to strong revenue growth across its key business segments. The company’s revenue increased by 24% YoY to INR 757.2 crore ($101 million) during the period, while its operating profit jumped 31.8% YoY to INR 144.4 crore ($19.2 million). The company’s management highlighted the significant contribution of its transportation and broadcast divisions to the earnings growth.

Tata Elxsi’s CFO’s Statement

Tata Elxsi’s Chief Financial Officer, Pratul Shroff, said that the company witnessed growth across all its business segments, including transportation, media, healthcare, and product design. He added that the company’s strategic focus on digital transformation, coupled with the strong demand for its services, drove its earnings growth during the quarter. Furthermore, Tata Elxsi’s management expressed confidence in the company’s growth prospects in the medium to long term, citing the rise in outsourcing trends and digital adoption worldwide.


Indigo’s return to profitability is a positive sign for India’s aviation industry, which has been hard hit by the pandemic. However, the airline, like others globally, faces headwinds such as rising fuel prices and ongoing travel restrictions in certain countries. On the other hand, Tata Elxsi’s robust earnings growth highlights the significant potential for the country’s technology sector, which has been thriving amid the pandemic. Nevertheless, both companies will likely face challenges as the global economy navigates a socially distanced world.

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