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IndiGo quarterly profit soars to Rs 1,203 cr on higher passenger revenues
Propelled by higher passenger revenues, InterGlobe Aviation posted its highest ever quarterly profit of Rs 1,203.14 crore for the three months ended June 30.
The parent of the country's largest airline IndiGo had a profit after tax of Rs 27.79 crore in the year-ago period. The profit has increased more than 43 times.
Total income climbed to Rs 9,786.94 crore for the June quarter from Rs 8,259.69 crore in the same period a year ago, according to a regulatory filing.
Its revenue from operations jumped nearly 45 per cent to Rs 9,420 crore.
Yield, which is an indicator of revenue earned for every kilometre flown, jumped to 12.8 per cent in the latest quarter.
Besides, the airline has increased its capacity.
IndiGo CEO Ronojoy Dutta said the company has reported the highest ever quarterly profit after tax.
"Strong passenger revenues along with a sharp improvement in cargo performance were key drivers to this improved profitability," he said.
The good performance also comes at a time when co-promoters Rakesh Gangwal and Rahul Bhatia are locked in a feud over alleged governance lapses.
IndiGo, which has been on expansion path, had 235 planes in its fleet at the end of June. It flies to over 70 destinations.
The latest June quarter demonstrated the company's ability to grow rapidly, while also expanding margin performance, Dutta said.
As on June 30, IndiGo's cash balance stood at Rs 17,337.1 crore.
For the second quarter of current fiscal, the company expects ASK (Available Seat per Kilometre) to increase by 28 per cent on a year-on-year basis.
The rise is projected to be 30 per cent for financial year 2020.
"With effect from April 1, 2019, the company has capitalised its operating leases in accordance with Ind AS 116.
"The capitalised lease liability as of June 30, 2019 was Rs 1,60,701 million (Rs 16,070.1 crore). The total debt (including the capitalised lease liability) was Rs 1,84,309 million (Rs 18,430.9 crore)," the filing said.
Indian Accounting Standards (Ind AS) 116 pertains to leases.
Shares of InterGlobe Aviation closed almost flat on Friday, up 0.32 per cent at Rs 1,463.35 on the BSE.
During the day, it gained 1.96 per cent to Rs 1,487.25. Since July 9, when differences between the promoters went public, the scrip has fallen by 6.53 per cent on the BSE.