IndiGo reports 7.4% decline in net profit

IndiGo on Monday  reported around 7.4% decline in net profit at Rs 591.77 crore for the second quarter ended June 2016. It said that the decline was due to competitive ticket pricing.

In a Bombay Stock Exchange (BSE) filing, the low-cost airline said its profit before tax was Rs 746.69 crore for the quarter ended June 2016, a decrease of 19.1% compared with the corresponding period last year.

The profit after tax was Rs 591.77 crore in the April-June quarter compared with Rs 638.89 crore last year same period, according to the filing. “We have posted yet another profitable quarter. However, profitability was lower than last year primarily because of competitive fare pressures,” IndiGo President Aditya Ghosh said in a statement.

He said the airline has reduced its debt by Rs 458.9 crore during the quarter and its on-time performance has improved to 85% compared with 80.6% during the same period last year.