IndiGo Q4 net slumps 73% to Rs 118cr on high fuel cost

Some believe the fact that Indi Go has announced a succession plan would reassure investors

IndiGo's revenue rose 20% YoY (-6% QoQ) to Rs 5,800 crore. It further said that Rahul Bhatia, a promoter of the company, has been appointed as the interim CEO.

Total expenses jumped 30.2 per cent to Rs 5,891 crore, including a 33.5 per cent increase in fuel costs to Rs 2,337.71 crore during the quarter.

The carrier, which last week announced the sudden departure of its President and Whole-Time Director Aditya Ghosh, had logged a profit after tax (PAT) of Rs 440.31 crore in the year-ago period.

The company said that results include certain credits received from manufacturers to offset some of the impact of aircraft groundings and delivery delays.

For the quarter, IndiGo saw its passenger ticket revenues at ₹5,019 crore, showing a robust increase of 17.9 per cent and ancillary revenues were ₹666 crore, recording an increase of 21.5 per cent compared to the same period past year. For fiscal 18, the company's profit and revenue were Rs 2,242 crore and Rs 23,020 crore, registering a growth of 35.1 percent and 23.9 percent, respectively. That said, Bhatia added, "We continue to look at the [international] long-haul opportunity without Air India and we continue to seek route rights and other necessary regulatory approvals as may be required to operate long-haul flights". The airliner's total debt stood at Rs 2452.70 crore as on 31 March 2018.

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For FY19, Indigo expects year over year capacity increase in ASKs at 25%.

The quarterly results were announced hours after it was reported that Securities and Exchange Board of India (Sebi) examining the sharp plunge in shares of the airline's parent company InterGlobe Aviation.

Philip stressed that there would be no change in business model with introduction of turbo prop operations and potentially wide-bodied operations.

"The key is to have the right cost structure in each market". It has all the commonalities with A320s but it will have more seats. Shares of the airline ended marginally lower by 0.55 per cent at Rs 1,400 apiece at the National Stock Exchange (NSE) after hitting an intra-day low of Rs 1,360 and a high of Rs 1,443.45. The market regulator is also checking if the company disclosed the resignation news in time, and if there are any violations of insider trading rules.

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