IndiGo Q4 profit slides 25% to Rs 440 cr on higher costs

IndiGo's parent InterGlobe Aviation today saw its profit slump 25 per cent 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 USD 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 per cent to Rs 5,141.99 crore while passenger revenue climbed nearly 21 per cent 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 per cent 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 per cent to Rs 1,750.51 crore.
"For the last quarter, despite a 38 per cent year-over- year increase in fuel prices, we have reported a profit after tax of Rs 4.4 billion," IndiGo President and Whole Time Director Aditya Ghosh said.

The company's board has recommended a dividend of Rs 34 per share for the fiscal 2017.
Revenue from operations went up 15 per cent to Rs 18,580.5 crore for the year ended March.
During this period, profit after tax stood at Rs 1,659.19 crore. This is a decline of about 17 per cent compared to Rs 1,986.16 crore in the same period a year ago.
IndiGo had a fleet of 131 planes, including 19 A320 neos as on March 31, 2017.
The airline said it expects to have a "fleet of 170 A320 aircraft at the end of fiscal year 2018".

At the end of March 2017, IndiGo's total cash balance stood at Rs 9,343.2 crore -- comprising Rs 4,432.6 crore of free cash and Rs 4,910.6 crore of restricted cash.
During the same period, the total debt was Rs 2,596.2 crore and the entire amount is related to aircraft, according to the release.
A term sheet has been signed between IndiGo and Avions de Transport Regional GIE (ATR) for purchasing 50 ATR 72-600 aircraft worth USD 1.3 billion.