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Mint
2 days ago
- Business
- Mint
In charts: Key shifts that are defining the Indian aviation industry
A spate of good news is flying out from the Indian aviation sector. IndiGo, the leader in the sector, just turned in its best-ever fourth quarter. There's a new airport in Mumbai about to commence operations, giving India's commercial capital a much-needed capacity boost. Several mid-level airports are stringing together above-industry growth in traffic. The international segment has crossed a key historical level that augurs well for future growth. With fuel prices also tumbling, airlines are in decent shape going into the lean season. Here are five takeaways from the latest data coming out of the aviation sector. Airports: Mumbai relief On 28 May, IndiGo said it would kick off flights at the second airport in Mumbai, the upcoming one at Navi Mumbai, with 18 daily domestic departures, or 36 aircraft movements. Further, it estimated increasing this to 79 daily departures (158 aircraft movements) by November. While neither the airline nor the airport announced the exact date of the first flight, this is reported to be in June or July. For Mumbai, the new airport is a capacity relief that is overdue. The existing airport has been operating at capacity for some years now. Even if airlines wanted to add more flights, the airport didn't have slots to offer them. Meanwhile, Bengaluru has crept up on Mumbai in the second slot in domestic flights, even overtaking it this March and April. How much of this is due to Bengaluru's own brisk growth and how much due to Mumbai's capacity constraints will become clear once the Navi Mumbai airport stabilises. Airlines: Catch the leader For IndiGo, the leader in domestic aviation in India, the commissioning of the Navi Mumbai airport will give it more scope for expansion. Ever since its inception in 2006, it has been chipping away, adding planes, destinations and connections. In the process, it has been weaning away market share from other airlines, several of which pursued more aggressive and front-loaded expansions. Following a purge and consolidation, Indian aviation is now principally a two-horse race between IndiGo and the Air India Group. The consolidation was led by the Tatas-owned Air India Group, with two sets of mergers in late 2024. The latest data shows that the Air India Group has lost domestic share—albeit in a growing market—to IndiGo in 2025. One reason could be Air India opting to refurbish some of its fleet. A lot of this refurbishment is expected to be completed in stages in 2025—while IndiGo expands. International: Tier-2 pick-up For the period from January to March 2025, IndiGo posted its best-ever fourth quarter, returning a net profit of ₹3,067 crore. In addition to the domestic segment, IndiGo has also been expanding steadily in the international segment. It increased its international passenger share from 18.2% in the December 2023 quarter to 19.4% in the December 2024 quarter, the latest for which such data is available. At the airport level, movements of international flights increased 9.4% in 2024-25. Delhi and Mumbai grew 7-8%. Of the 46 airports that saw international traffic in 2024-25, 16 grew above 20% in flight movements. These 16 airports account for only 14% of all international movements, they embody the widening of the international pie—from the main metros to tier-II metros. Nine of them recorded at least 1,000 international aircraft movements in 2024-25, and Bengaluru is the only main metro airport among them. Pairings: Pandemic recovery Such pockets of strong growth underpin the recovery of the international segment. According to data from the Indian regulator, there were 346 destination pairings (for example, Delhi-Dubai is one pairing) in the international segment in the October to December 2024 quarter, the latest available for this data. In the last quarter of the calendar year, this is the first time since the pandemic that the number of destination pairings has crossed the pre-pandemic high registered in the December 2018 quarter. Take Bengaluru, the largest of the set of 16 airports in 2024-25, with more than 1,000 international flight movements and above 20% year-on-year growth. It went from 21 active international pairings in the December 2023 quarter to 25 in the December 2024 quarter, with the additions being Denpasar, Langkawi, Phuket and Port Louis. Similarly, Lucknow went from 8 to 11, and Jaipur from 4 to 5. Fuel: Bottomline benefit Similar growth is also seen in the domestic segment—9.1% in passenger growth in 2024-25. All three leading Indian airlines—IndiGo, Air India Group and Akasa—are acquiring new aircraft and have a healthy order pipeline. Besides a steady operating environment, the current outlook on oil prices is also favourable. In the past year, the price of Brent crude has dropped by about 23 % per barrel. In the same period, the price of domestic aviation turbine fuel (ATF) at Delhi's Terminal 3 has dropped about 16%. Also Read: IndiGo's Q1 turbulence to be temporary as crude oil prices soften, capacity grows Fuel is the biggest cost head for airlines, and a drop in prices boosts their bottom lines. In the March 2025 quarter, IndiGo's fuel cost as a share of revenues was 30.5%. By comparison, in the September 2024 quarter, which is a lean season and when ATF prices were higher, it was 39%. As the lean season approaches, they will hope for fuel prices to stay low. is a database and search engine for public data
Time of India
27-05-2025
- Business
- Time of India
Where does Zepto's GOV stand in front of rivals?
Quick commerce platform Zepto's gross order value (GOV) will cross Rs 2,400 crore this month, up a whopping 220% from about Rs 750 crore in May 2024, its cofounder and chief executive Aadit Palicha said in a LinkedIn post on Sunday. This represents an annualised gross sales run rate of around $3.4 billion, or around Rs 28,800 crore, which could be higher than rival Swiggy Instamart . Palicha had last month said the Bengaluru-based company's annualised GOV run rate is expected to cross $4 billion soon. So, where does it stand compared to its key rivals? Eternal 's Blinkit , which is the market leader in quick commerce, reported a 134% year-on-year increase in its GOV for the March quarter at Rs 9,421 crore. Its annualised GOV is $4.4 billion (around Rs 37,684 crore). Swiggy Instamart 's GOV doubled year-on-year to Rs 4,670 crore for the March quarter, translating into an annualised GOV of $2.2 billion (Rs 18,680 crore). Uneven GOV definition GOV is simply the total value of all orders placed on a platform. However, different players define it differently. Zepto, unlike its rivals, includes ad revenue. GOV considers the maximum retail price (MRP) of goods sold on a platform. In the case of fruits and vegetables, which don't have an MRP, all the three players use the final selling price of the product. GOV also includes various fees and charges that are levied on the users, including handling charges, processing fees, convenience charges and the actual delivery fees paid by the consumers. However, GOV as a metric, does not account for the discounts extended by the platform, brands or banks and credit card partners. Blinkit recently announced a new metric for calculation called net order value (NOV) during its January-March quarter results. The company calculates NOV by subtracting discounts (funded by the platform and its brand partners) from GOV. The decision to include this metric comes after the company observed a widening gap between Blinkit's GOV and the actual amount paid by the customer. This is happening because a product's MRP (maximum retail price) is usually significantly higher than its market selling price, the company noted in its Q4 results announcement. Swiggy Instamart also started announcing its NOV numbers from the March quarter's results along with the GOV numbers. Dark stores Blinkit is heavily focused on expanding its dark store network to outpace competitors in the rapid delivery space. Currently, it has over 1,300 dark stores, and plans to have 2,000 stores by the end of 2026. Swiggy Instamart and Zepto are closely matched in terms of dark store count, operating over 1,000 stores each. Palicha said in the LinkedIn post that Zepto was ramping up store additions. Tatas-owned BigBasket has a network of over 500 dark stores, while Flipkart Minutes, one of the most aggressive players in the space, operates around 400 mini-warehouses and plans to increase this to 800 by year-end. Profitability and cash burn Palicha said a majority of Zepto's dark stores will be fully Ebitda -positive by the next quarter. He said the company's Ebitda has improved by 2,000 basis points (20 percentage points) between January and May 2025, with cash burn down 65% during the same period. Meanwhile, Blinkit and Instamart's losses have been expanding as these companies step up on their dark store additions. The growth in Eternal's quick commerce arm pushed operating revenue to surge 64% on-year to Rs 5,833 crore, but its expansion plans cost the company and pushed up the operating losses by 75% sequentially to Rs 178 crore. For Instamart, adjusted Ebitda loss increased to Rs 840 crore against Rs 304 crore in the year-ago period.
Time of India
07-05-2025
- Automotive
- Time of India
Auto cos fear lower UK tariffs may lead to Chinese dumping
New Delhi: The Indian automobile industry reacted with caution to FTA with the UK, which aims to reduce import duty to 10%. Companies, which are awaiting finer details, fear that lower tariff rates may be replicated in other trade agreements under discussion. They are also concerned about the possibility of "dumping of cheap Chinese parts and aggregates" in the UK, which could then be diverted to India as fully-built the Indian component industry welcomed the move, as duty on imports of India's parts to the UK will be slashed to zero, car companies remain tense in the absence of clarity. The auto industry is looking for details, such as by when (time period) the import duty for cars from the UK will come down to 10%. "Also, we would like to understand what is the quota that has been specified. This means how many cars will be allowed to be imported under the lower tariffs every year," company officials and industry association executives told of the brands that are manufacturing in the UK and will benefit from lower import duty, include Tatas-owned Jaguar Land Rover (JLR), luxury makers Bentley, Aston Martin, Rolls Royce, Lotus, and are, however, limited volume brands and may not have a direct bearing on the mainline brands. However, the UK also has factories of mainstream auto companies, such as Nissan and Toyota, who could now look at importing some of their models here at lower Chinese threat, Indian industry fears UK companies may source cheap Chinese batteries, motors and other parts to UK and divert them to India at lower prices using FTA. "We hope govt would have negotiated the clause around rules of origin, local value addition, and change in tariff heading to ensure that dumping from China can be contained. Only products with a substantial UK value addition should be allowed under FTA," officials the two-wheeler front, companies like TVS, which has a UK brand, welcomed the deal. "It creates large opportunities for Indian companies like ours to expand further and access new markets... Our British brand Norton will launch later this year and this agreement will help us scale faster and leverage common supply chains," Sudarshan Venu, MD of TVS Motor, Agarwal, partner & automotive tax leader at EY India, said the deal will help auto component makers sell more in UK. "Indians might be able to buy premium cars from UK at right price point as soon as they are launched globally. It probably won't shake up our local car manufacturers too much because most Indian consumers still prefer more affordable options."
