IndiGo to buy 50 ATR planes; Q4 profit falls 25 per cent to Rs 440 crore
PTI May 9, 2017
IndiGo's parent InterGlobe Aviation today reported a nearly 25 per cent decline in profit at Rs 440.31 crore in the fourth quarter ended March 2017 as higher expenses took a toll on its bottom line.
The country's largest airline in terms of market share had a profit after tax of Rs 583.78 crore in the same period a year ago.
The carrier -- which has inked a pact to purchase 50 ATR 72-600 aircraft as part of the regional air connectivity push -- had revenues from operations to the tune of Rs 4,848.22 crore during the latest January-March quarter.
In the year-ago period, the same stood at Rs 4,090.68 crore, according to a release.
On the back of steep rise in fuel costs, the company's total expenses in the fourth quarter of last fiscal jumped nearly 31 per cent to Rs 4,523.04 crore.
The total expenses stood at Rs 3,458.20 crore in the same period a year ago.
According to the release, fuel costs in the fourth quarter surged 71 per cent to Rs 1,750.51 crore.
"For the last quarter, despite a 38 per cent year-over- year increase in fuel prices, we have reported a profit after tax of Rs 4.4 billion," IndiGo President and Whole Time Director Aditya Ghosh said.
The company's board has recommended a dividend of Rs 34 per share for the fiscal 2017.
IndiGo plans to purchase 50 ATR turbo-prop aircraft and start operations with these planes by year end as the no-frills airline looks to tap the regional aviation market.
This would be the first time that the leading carrier would be acquiring ATR 72-600 planes, which generally have a seating capacity for 70 people.
While announcing the quarterly results today, IndiGo said it has signed a term sheet with Avions de Transport Regional GIE (ATR) for purchasing 50 ATR 72-600 aircraft with the "flexibility to reduce the number of aircraft deliveries based on certain conditions".
The term sheet is subject to reaching a mutually satisfactory final purchase agreement with ATR and the engine manufacturer, it said.
"Assuming that both the intended final purchase agreement are reached, IndiGo plans to launch its turbo-prop operation at the end of calendar 2017 and expects to induct up to 20 ATR aircraft by December 2018," the release said.
IndiGo President and Whole Time Director Aditya Ghosh said that in support of UDAN mission, "we are embarking on a journey to build a nation-wide regional network and connect cities that have not benefitted from the growth in Indian aviation".
The government's UDAN (Ude Desh ka Aam Naagrik) scheme seek to connect un-served and under-served airport as well as make flying more affordable to the masses.