IndiGo's parent InterGlobe Aviation today reported a nearly 25 per cent decline in profit at Rs 440.31 crore in the fourth quarter ended March 2017 as higher expenses took a toll on its bottom line.
IndiGo’s parent InterGlobe Aviation today reported a nearly 25 per cent decline in profit at Rs 440.31 crore in the fourth quarter ended March 2017 as higher expenses took a toll on its bottom line. The country’s largest airline in terms of market share had a profit after tax of Rs 583.78 crore in the same period a year ago. The carrier — which has inked a pact to purchase 50 ATR 72-600 aircraft as part of the regional air connectivity push — had revenues 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. On the back of steep rise in fuel costs, the company’s total expenses in the fourth quarter of last fiscal jumped nearly 31 per cent to Rs 4,523.04 crore. The total expenses stood at Rs 3,458.20 crore in the same period a year ago.
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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.