Shared News | Jul 30, 2018 17:46:44 IST
Thank you for reading this post, don't forget to subscribe!Mumbai: InetrGlobe Aviation, which runs largest domestic carrier IndiGo, on Monday reported a steep 96.6 percent fall in net profit to Rs 27.8 crore in June quarter, owing to the 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 last year.
However, sales from operations rose 13.2 percent 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, IndiGo.
Total expenses for the quarter jumped by 40.5 percent year-on-year to Rs 678.70 crore, while fuel cost shot up by 54.5 percent 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 last year.
The company’s stock ended 0.23 percent lower at Rs 1,004.25 apiece on the BSE on Monday, against 0.42 percent jump in the benchmark.
