IndiGo Q1 net tanks 96.6% to Rs 27.8 crore

InterGlobe Aviation, which runs largest domestic carrier IndiGo, on Monday reported a steep 96.6% fall in net profit to Rs 27.8 crore in the June quarter, owing to an adverse impact of foreign exchange and high fuel prices.

The Gurugram-based budget carrier had posted a net profit of Rs 811.10 crore in the same quarter of last year.

However, sales from operations rose 13.2% to Rs 651.20 crore in the quarter, compared with Rs 575.29 crore in the year-ago period, it said in a regulatory filing.

Profitability was majorly impacted by the adverse impact of foreign exchange, high fuel prices and the competitive fare environment, the airline added.

“While we faced headwinds during the quarter, we remain focused on executing our long-term plan. We added capacity into new routes and destinations domestically and also continued to connect international destinations to various cities in India,” said Rahul Bhatia, Co-founder and Interim Chief Executive Officer of IndiGo.

Total expenses for the quarter jumped by 40.5% year-on-year to Rs 678.70 crore, while fuel costs shot up by 54.5% to 271.56 crore, from Rs 175.92 crore in the year-ago period.

Besides, yield or average ticket price dropped to Rs 3.62 per km in the June quarter, against Rs 3.83 per km in the same period of last year.

The company’s stock ended 0.23% lower at Rs 1,004.25 apiece on the Bombay Stock Exchange on Monday, against 0.42% jump in the benchmark.