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Financial Analysis

CIAL’s Outstanding Performance in FY23: A Comprehensive Analysis

Table of Contents

  1. Introduction
  2. Financial Highlights
    • Revenue and Profit After Tax (PAT)
    • Operational Profit
  3. Key Drivers of Growth
    • Tariff Rules and User Development Fee (UDF)
    • Non-Aero Revenue
  4. Operational Performance
  5. Future Projections
  6. Dividends and Capital Raising
  7. Cash Flow and Capex
  8. Valuation
  9. Subsidiaries
  10. Conclusion


Cochin International Airport Limited (CIAL) has showcased remarkable growth in FY23, both in terms of revenue and operational efficiency. While the standalone revenue skyrocketed from INR 418 Cr in FY22 to INR 717 Cr in FY23, the consolidated revenue level also saw a significant boost, reaching approximately INR 940 Cr as compared to INR 500 Cr in FY22. In this article, we will delve into the factors contributing to CIAL’s extraordinary performance.

Financial Highlights

a) Revenue and Profit After Tax (PAT)

CIAL’s standalone PAT experienced a massive uptick from INR 22 Cr in FY22 to INR 267 Cr in FY23. On the consolidated level, the PAT reached an impressive INR 290 Cr in FY23, a substantial increase from INR 32 Cr in FY22.

b) Operational Profit

CIAL also witnessed nearly a twofold increase in its operational profit, surging from INR 217 Cr to INR 521 Cr in FY23.

Key Drivers of Growth

a) Tariff Rules and User Development Fee (UDF)

The revision of User Development Fee (UDF) and aeronautical tariffs have been primary drivers for the surge in CIAL’s performance at the standalone level. UDF is a fee levied per ticket, contributing directly to the airport’s maintenance and operational costs. The renewal of these charges for the next five years has been pivotal in boosting CIAL’s income.

b) Non-Aero Revenue

The company also saw an increase in non-aero revenue, such as rental income and royalty income from CIAL Duty Free Subsidy, by almost INR 140 Cr compared to FY22.

Operational Performance

CIAL’s airport facilitated the travel of approximately 42 lakh international and 47 lakh domestic passengers in 2022-23, totaling about 89 lakh passenger movements. Interestingly, this figure reaches 90% of the pre-COVID levels of 97 lakh passengers in 2019-20.

Future Projections

With a forecasted 17% growth in the domestic aviation sector, CIAL’s management is optimistic that the annual passenger figures will cross the 1 Cr mark in FY23-24.

Dividends and Capital Raising

This year, the company announced a dividend of INR 167 Cr and raised about INR 478 Cr via a rights issue.

Cash Flow and Capex

CIAL generated a Cash Flow from Operations (CFO) of approximately INR 645 Cr, a significant increase from last year’s INR 158 Cr. The company also invested around INR 124 Cr in capital expenditures.


With a total of 47 Cr outstanding shares and an unlisted share price of INR 190, CIAL’s market capitalization stands at approximately INR 8930 Cr.


CIAL Duty Free and CIAL Infrastructure are the major subsidiaries contributing to revenue. CIAL Duty Free pays 45% of its revenue as royalty to CIAL, while CIAL Infrastructure focuses on Solar Power setups, making CIAL the world’s first fully solar-powered airport.


CIAL has outperformed its previous years with significant growth in both revenue and profitability. As the aviation sector in India is the fastest-growing in the world, CIAL is well-positioned to capitalize on this upward trend. With excellent financials and a strong operational base, CIAL stands as a promising investment avenue in the burgeoning aviation sector.

Disclaimer: The information contained in this article is for informational purposes only and should not be considered financial advice. Always consult a financial advisor before making any investment decision.

Cochin International Airport Limited Unlisted Shares

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