Maintain BUY with an increased TP of Rs 1,435 based on 15x Sept-19EPS. Interglobes 2QFY18 results beat expectations, owing to strong yield. Revenue grew 27% YoY to Rs 52.9bn, driven by RPKM growth at 15.3%, while yield increased 8.9%. PAT increased 298% to Rs 5.5bn. ASKM/RPKM growth was strong at 13/15.3%, with the load factor improving 180bps to 84%. Fuel cost per ASKM declined 6% QoQ, as ATF prices also dipped 4.8%, owing to the continuation of sourcing benefits started in 1QFY18. EBITDAR margin increased 640bps to 33.9%. Spread (RASK-CASK) was strong at Rs 0.36 per ASKM, as compared to Rs 0.01 per ASKM in 1QFY17.