IndiGo's June quarter profit slumps 12% to Rs 2,729 Cr on higher expenses
While the total income shot up 18% to Rs 20,248.9 crore in the first quarter of the current financial year, the overall expenses, mainly driven by higher fuel costs, jumped 24% to Rs 17,444.9 crore.
The country's largest airline IndiGo on Friday posted a nearly 12% decline in profit after tax at Rs 2,728.8 crore in the three months ended June as higher fuel and other expenses crimped the bottom line.
While the total income shot up 18% to Rs 20,248.9 crore in the first quarter of the current financial year, the overall expenses, mainly driven by higher fuel costs, jumped 24% to Rs 17,444.9 crore.
In the 2023 June quarter, IndiGo's parent InterGlobe Aviation had a profit after tax of Rs 3,090.6 crore.
Excluding the impact of foreign exchange, the carrier's profit after tax in the latest June quarter was Rs 2,786.3 crore, according to a release.
Total income in the year-ago period stood at Rs 17,160.9 crore.
The airline's total expenses surged 24% to Rs 17,444.9 crore, with fuel costs rising 22.7% to Rs 6,416.5 crore in the three months ended June 2024.
In the same period a year ago, total expenses were at Rs 14.070.2 crore.
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According to the company, aircraft and engine rentals also went up to Rs 624.1 crore in the latest June quarter from Rs 194.6 crore in the year-ago period.
The load factor, which refers to seat occupancy in a flight, dropped to 86.7% in the quarter under review from 88.6% in the same period a year ago.
"I am pleased to report another strong quarterly financial performance for the first quarter of financial year 2025.
"A continued growth in total income of 18% as compared to the same period last year to 202.5 billion rupees and a net profit of 27.3 billion rupees, resulting in a solid margin of around 14%," IndiGo CEO Pieter Elbers said.
At the end of June, the airline had 382 planes, including 18 aircraft on wet lease.
Shares of the company gained 1.37% to close at Rs 4,491.25 apiece on the BSE.
Edited by Suman Singh