IndiGo Q1 net tanks 96.6 per cent to Rs 27.8 crore on high fuel cost

Mumbai: InterGlobe Aviation, which runs largest domestic carrier IndiGo, on Monday reported a steep 96.6 per cent fall in net profit to Rs 27.8 crore in June quarter, owing to 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 per cent 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 per cent year-on-year to Rs 678.70 crore, while fuel cost shot up by 54.5 per cent 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 per cent lower at Rs 1,004.25 apiece on the BSE on Monday, against 0.42 per cent jump in the benchmark.