IndiGo profit soars fourfold to Rs 551 cr in September quarter

The Gurgaon-based IndiGo on Tuesday reported a massive spike in September quarter as the net profit goes up fourfold  at Rs 551.5 crore from Rs 139.8 crore in the July-September quarter of the last fiscal.

The massive spike was boosted by a one-time payment towards engine issues and delayed aircraft deliveries and higher margins.

“Profitability was favorably impacted by better revenue management and credit received from manufacturers related to aircraft grounding and delivery delays”, Aditya Ghosh, company’s President and Whole-Time Director said during the post-earnings analysts call.

The airline’s other income during the reporting quarter rose over 33.5 per cent to Rs 214.6 crore.

IndiGo has been facing problem with aircraft engines supplied by P&W in its A320 Neos for quite some time, which also led to grounding of these planes.

On top of it, the European aviation major Airbus has also not been able to meet delivery of some of these A320 Neos to the budget carrier on time.

IndiGo, an airline run by InterGlobe Aviation commands over 38 per cent share of the total domestic traffic.

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The airline’s income from operations jumped 27 per cent to Rs 5,291 crore, while other income rose 33.5 per cent to Rs 214.5 crore from Rs 160.7 crore, taking the total revenue to Rs 5,505.6 crore, up 27.2 per cent from Rs 4,327.7 crore.

The load factor rose 180 bps to 84 per cent while the yield rose 8.9 per cent to Rs 3.57 from Rs 3.28.

With an average ATF price of Rs 50.17 which is 2.5 per cent up over Rs 48.96 a year ago, fuel expenses rose 6.1 per cent to Rs 1,647.3 crore while aircraft and engine rentals also rose at a similar quantum to Rs 819.3 crore. Other expenses jumped 31.6 per cent to Rs 1,455 crore while finance cost rose over 40.5 per cent to Rs 85.7 crore.

Its cash balance rose 88.5 per cent to Rs 1292.56 crore from Rs 685.72 crore while debt declined 7.5 per cent to Rs 253.68 crore from Rs 274.28 crore.

Ghosh also said that while his airline is “supportive” of any expansion or any development of airport infrastructure (at Delhi airport), it does not want to split up operations.

“We have given several options and suggestions to Delhi airport, other airlines and the ministry,” he said, adding the airline is averse to relocating partially at one terminal or the other.

The airline is also “seriously” looking to participate in the Central Government’s regional connectivity scheme “UDAN”.

“We are looking at UDAN, the current process that is out there. Absolutely we are looking at it seriously,” Ghosh said, without giving specifics.

The Government is likely to announce winners for the second phase of UDAN (Ude Desh Ka Aam Nagrik) scheme by next month end. The scheme aims at making flying affordable for the masses.

(With PTI Inputs)