IndiGo Q1 net profit plunges 96% to Rs 278 million, more trouble ahead

After muted June-quarter performance due to cost and pricing pressure, the outlook for seasonally weak second quarter is no different

If the March quarter numbers were disappointing, with a 73 per cent year-on-year fall in net profit, the June quarter performance at InterGlobe Aviation (owner of airline IndiGo) was worse. With a spurt in fuel cost and pricing pressure, the company reported a 96 per cent decline in net profit over the year ago quarter to Rs 278 million — analysts had expected Rs 5 billion.

Compounding matters for it was foreign exchange (forex) losses, given the depreciating rupee and unusually high maintenance cost, due to an older fleet of aircraft.

Fuel has been biggest drag, with a litre costing 30 per