IndiGo Q4 profit slides 25% to Rs 440 crore on higher costs
IndiGo’s parent InterGlobe Aviation saw its profit slump 25% to Rs 440.31 crore in the three months ended March 2017 as steep rise in fuel costs trimmed the bottom line even as revenues rose.
Its profit after tax stood at Rs 583.78 crore in the January-March period of 2016.
The carrier — which has inked a pact to purchase 50 ATR aircraft worth $1.3 billion as part of the regional air connectivity push — had higher revenue from operations to the tune of Rs 4,848.22 crore during the latest January-March quarter.
In the year-ago period, the same stood at Rs 4,090.68 crore, according to a release.
For the latest quarter, total revenue rose over 20% to Rs 5,141.99 crore while passenger revenue climbed nearly 21% to Rs 4,258.45 crore.
However, significant jump in total expenses — primarily fuelled by increased fuel costs — pulled down the profit.
The company’s total expenses in the fourth quarter of the last fiscal jumped nearly 31% to Rs 4,523.04 crore as against Rs 3,458.20 crore in the same period a year ago.
According to the release, fuel costs in the fourth quarter surged 71% to Rs 1,750.51 crore.
“For the last quarter, despite a 38% year-over- year increase in fuel prices, we …read more