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IndiGo net up 24% on low oil prices

business Updated: Jan 22, 2016 01:10 IST
HT Correspondent
IndiGo

A file photo of IndiGo Airlines A320 aircraft parked on the tarmac at Bengaluru International Airport in Bangalore.

IndiGo, India’s biggest and most profitable airline, announced a 23.7% year-on-year increase in net profit to Rs 657.28 crore for the quarter ended December 2015 on the back of lower oil prices and increased demand for air travel.

The airline also reported its highest profit before tax of Rs 932 crore during the October-December quarter.

The airline, which raised over Rs 3,000 crore in an initial public offering (IPO) in November last year, said it had no working capital debt and the only debt it had was aircraft related.

Income from operations rose 11.4% year-on-year to Rs 4,297 crore during the third quarter, while revenues increased 11.9% to `4,407 crore.

The company’s fuel cost fell 19.8% to`1,165 crore, but other costs (excluding fuel) rose 33.2%.

It flew 8.33 million passengers during the quarter compared to 6.53 million people a year-ago.

“Our business continues to perform well on the back of increase in fleet size, robust passenger demand and low fuel prices. Lower fuel prices enabled us to lower our fares to our customers further stimulating market demand and increasing the propensity of people to travel,” said Aditya Ghosh, IndiGo’s president and whole-time director.

This was IndiGo’s first earning announcement after getting listed on the stock exchanges in November last year.

It currently has a fleet of 100 new A320. It offers 647 daily flights, connecting 34 domestic and five international routes.

New Delhi: IndiGo, India’s biggest and most profitable airline, announced a 23.7% increase in net profit for the quarter ended December 2015 on the back of lower oil prices and increased demand for air travel.

The company reported a net profit of Rs 657.28 crore for the October-December 2015 quarter compared to Rs 531.56 crore in the year earlier. IndiGo also reported its highest profit before tax of Rs 932 crore since its inception.

The airline, which raised over Rs 3000 crore in an IPO in November last year said it had no working capital debt and the only debt it had was aircraft related.

The total income from operations increased 11.4% to Rs 4297 crore from Rs 3857 crore the previous year while revenues increased 11.9% to Rs 4407 crore from Rs 3938 crore the year ago.

The company’s fuel cost fell by 19.8% to Rs 1165 crore as against Rs 1453 crore during the corresponding period last year but other costs (excluding fuel) increased by 33.2%.

“Our business continues to perform well on the back of increase in fleet size, robust passenger demand and low fuel prices. Lower fuel prices enabled us to lower our fares to our customers further stimulating market demand and increasing the propensity of people to travel,” said Aditya Ghosh, IndiGo’s President and whole-time director.

This was IndiGo’s first earning announcement after being listed on the stock exchanges.