IndiGo profit plunges 75 per cent in Q3 to Rs 191 crore

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Updated: January 24, 2019 7:19:19 AM

The net profit of InterGlobe Aviation, parent of low-cost airline IndiGo, crashed 75% year-on-year to `191 crore for the third quarter due to sharply higher jet fuel prices, lease rentals and other costs.

IndiGo, indigo Q3 net profit, indigo profitIndiGo Q3 net profit dives 75 per cent to Rs 191 crore

The net profit of InterGlobe Aviation, parent of low-cost airline IndiGo, crashed 75% year-on-year to `191 crore for the third quarter due to sharply higher jet fuel prices, lease rentals and other costs.

Although revenue from operations jumped 28.1% y-o-y to `7,916 crore, the operating margin or the EBITDAR (earnings before interest, tax, depreciation, amortisation and rentals) was down 11.2 bps y-o-y to 20.1%.

In the last three months, the IndiGo stock gained 38% and closed the Wednesday’s session at `1,107.95 apiece, down by 0.89%, on the BSE.

The airline’s revenue received a boost from better volumes — it carried 22.5% more domestic passengers in the December 2018 quarter — and better yields. The per passenger revenue stood at `3.83/km in Q3FY19, up 3.7% y-o-y. According to analysts, the average fare during the quarter was up 6.3% y-o-y.

IndiGo’s fuel cost jumped 69.2% y-o-y to `3,410.4 crore in the quarter under review. Other expenses surged 32% from the year ago to `2,140.9 crore. Expenses on account of lease rentals were up 45.7% to `1,376 crore.

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According to Indian Oil Corporation, the average aviation turbine fuel (ATF) price was `72,900/kl during the October-December period, compared with `54,900/kl a year ago, up 33%. The value of rupee depreciated around 9% y-o-y. Costs such as lease rentals, repairs and maintenance are dollar denominated in the airlines business.

With an enviable market share of 43% at the end of December 2018, the budget carrier has been adding capacity at a fast clip. The available seat kilometres (ASKs) are 21.6 billion, up 32.9% y-o-y. It inducted 19 aircraft during Q3FY19, taking the size of its fleet past 200.

The domestic market capacity excluding IndiGo has increased by around 10% y-o-y so far. IndiGo posted its first-ever loss of `652 crore, post listing, in the second quarter. IndiGo’s Q1FY19 profit had plunged 97% y-o-y to `28 crore.

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