IndiGo’s Parent InterGlobe Aviation’s Profit Drops 25% As Fuel Costs Rise
InterGlobe Aviation Ltd. registered a 25.9 percent fall in profit in the third quarter of the financial year 2016-17, missing street estimates by more than 35 percent on the back of rising fuel costs.
Net profit for the operator of IndiGo Airlines, fell to Rs 487.3 crore from Rs 657.3 crore in the same quarter last year, according to its filing to the exchanges. The profit estimated by analysts tracked by Bloomberg stood at Rs 752.3 crore.
Total income rose 15.7 percent to Rs 4,943.1 crore from Rs 4,273.4 crore on a yearly basis. Fuel expenses made up 33 percent of the total expenses during the quarter compared to 27 percent of total expenses in the corresponding quarter last year.
Earnings before interest, taxes, depreciation, amortisation, aircraft and engine rent costs (EBITDAR) stood at Rs 1,460.50 crore as compared to Rs 1,676.80 crore, down 12.90 percent year-on-year. The EBITDAR margin stood at 29.3 percent versus 39 percent, down by 10 basis points.
Debt & Cash
The company has reduced its debt by Rs 458.9 crore for the quarter. While, total cash increased by 23.3 percent to Rs 84,550 crore compared to Rs 68,572 crore in the quarter ended September 30, 2016.
IndiGo continued to lead with a 41.6 percent market share of passengers carried by domestic airlines, for the October to December quarter, according to the data earlier release by the Directorate General of Civil Aviation. Jet Airways Ltd. ranked second with a 15 percent share while Air India followed with a 13.3 percent share.
Fleet And Capacity Update
InterGlobe Aviation which currently operates 126 aircraft right hopes to induct 20 new A320Neos into its fleet, by April 2017. Some of the new aircraft will be used to replace ageing planes, with the total figure
Expected fleet at the end of fiscal year 2017 is expected to go up to 133 including 20 A320neos. Presently, the Interglobe owns 126 fleets as compared to 100 fleets in December, 2015
Available seat per kilometre (ASK) is expected to increase 25 percent year-on-year in the fourth quarter of financial year 2017. The ASK stood at Rs 1,440 crore in the December-ended quarter quarter ended December 31, 2016 as compared to Rs 1080 crore, up by 33.8 percent.