IndiGo airlines, on Monday, reported a five-fold gain in profit to Rs 589.60 crore for March quarter against Rs 117.60 crore in the same quarter last year. However, complete-year net fell significantly due to higher oil prices.
While the Jet Airways was financially crushed and its services came to a permanent stop from April 2019 due to an acute cash crunch, IndiGo-led InterGlobe Aviation benefitted from the grounded airlines in Q4 FY19.
Net profit rose to Rs 589.59 crore in the quarter ended March 31 from Rs 117.64 crore a year earlier, InterGlobe Aviation said.
“The situation with Jet Airways, during February and March, increased our unit revenue by 3-4%,” said Ronojoy Dutta, the chief executive of IndiGo. “Our April revenues were, in fact, the most affected by the shutdown of Jet Airways, and it’s stronger than what we reported in March,” he added.
Dutta further said that it was difficult to be bullish about the future.
“We see plenty of opportunities for profitable growth in our network and with a robust delivery stream of new aircraft, we are well positioned to capitalise on this growth,” he said.
According to the company statement, it is eyeing to rise by 30% in the coming FY19.
Whereas, the board of the company has announced a dividend of Rs 5 per share subject to shareholders’ approval.
Overall, InterGlobe Aviation, as reported, has cash of Rs 15,308 crore, comprising Rs 6,080 crore free cash and Rs 9,229 crore restricted cash.
The total debt stood at Rs 2,429 crore and the entire debt for IndiGo is aircraft related.