Higher crude prices dent IndiGo's fortunes; Q4 profit slumps 73% to Rs 118 crore

After years of stellar performance, higher crude prices seem to be taking its toll on the earnings of India's largest airline by market share. Budget carrier IndiGo's parent - InterGlobe Aviation - posted a 73 per cent decline in profit at Rs 117.96 crore in the three months ended March 2018 as rising fuel expenses crimped the bottom line.

The low-cost carrier posted its highest ever Profit After Tax of Rs 2,242 crore for the year ended March 2018, an increase of 35.1 per cent compared to last year's Rs 1,656.98 crore. However, fuel expenses shot up to Rs 2,337.71 crore in the latest quarter under review from Rs 1,750.51 crore in the year-ago period.

"We have reported our highest ever annual profits for fiscal 2018. We continue to execute on our growth plans and are putting in place the management team to execute our plans," IndiGo Co-Founder and interim CEO Rahul Bhatia said.

In the fourth quarter of 2017-18, IndiGo recorded a higher total income of Rs 6,056.84 crore compared to Rs 5,141.99 crore in the same period a year ago. The company had a total comprehensive income of Rs 439.98 crore in the year-ago period, according to a regulatory filing.

In the last fiscal, the total income stood at Rs 23,967.74 crore compared to Rs 19,369.57 crore in the same period a year ago. These numbers are on a consolidated basis.

IndiGo's flight cancellation rate stood at 1.74 per cent. The airline had earlier witnessed frequent cancelleations due to grounding of its Airbus A320neo fleet following trouble with Pratt & Whitney engines.

IndiGo said its Q4 results include certain credits received from manufacturers to offset some of the impact of aircraft
groundings and delivery delays.

The low fare airline ended the quarter with a fleet of 159 aircrafts, adding a net of 6 aircraft including 3 ATRs. IndiGo flies to 50 destinations including 8 international destinations.

The Board of Directors of the company recommended a dividend of Rs 6 per share.