IndiGo posts quarterly loss of Rs 652 crore due to rising fuel costs and weakening rupee
This is the first time that the company recorded a quarterly loss since getting listed on the Bombay Stock Exchange in November 2015.
InterGlobe Aviation, the owner of low-cost domestic airline IndiGo, on Wednesday reported a quarterly loss of Rs 652.1 crore in the three months that ended in September. The losses came on the back of rising fuel costs and a weaker rupee, PTI reported.
This is the first time that the company has posted a quarterly loss since getting listed on the Bombay Stock Exchange in November 2015. IndiGo, with more than 40% market share, is the country’s largest private airline. Last year, it posted a profit of Rs 551.6 crore.
“High fuel cost, rupee depreciation and intense competition significantly impacted profitability,” a filing by the company said. In the latest quarter, its total expenses increased to Rs 7,502.3 crore, a jump of 58.2%.
The aviation sector in the country is facing significant pressures due to increasing costs and a falling rupee, said IndiGo’s co-founder and interim Chief Executive Officer Rahul Bhatia. “Despite this difficult environment, IndiGo remains well-positioned, thanks to our low cost structure and strong balance sheet,” he said.
In a statement to the BSE after its board meeting, the carrier said it recorded operating revenues of Rs 6,185.3 crore for the quarter that ended in September this financial year. This was an increase of 16.9% over the same period last year, reported The Hindu BusinessLine. The airline’s passenger ticket revenues jumped by 17.2% to Rs 5,285.2 crore, while its ancillary revenues increased by 12.8% to Rs 716.7 crore.
The airline’s total debt stands at Rs 2,641.1 crore, said the statement. “The entire debt for IndiGo is aircraft related,” it said. “IndiGo does not have any working capital debt.”