IndiGo’s parent InterGlobe Aviation today reported a nearly 25% 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% to Rs 4,523.04 crore.
The total expenses stood at Rs 3,458.20 crore in the same period a year ago.
According to the release, fuel costs in the fourth quarter surged 71% to Rs 1,750.51 crore.
“For the last quarter, despite a 38% 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.