New Delhi: The losses of Jet Airways and SpiceJet have been IndiGo’s gain, quite literally. Bucking the trend in the Indian aviation space, where companies have red ink splashed all over their ledgers, IndiGo, the country’s largest budget airline, has reported net profit of Rs 787 crore for the financial year ended March 31 — a five-fold surge from the previous year’s Rs 128 crore.
The company’s profit was pushed by a combination of increase in capacity — when other competing airlines were lowering their number of seats — and rise in yields through reduction in non-fuel expenses. The overall good show came despite fuel bills shooting up and a fall in the rupee’s value bumping up costs. Since IndiGo broke even in 2008-09, this was a fifth straight year of net profits for it.
In contrast, Jet Airways and SpiceJet, the two publicly-listed India airline companies, incurred losses of Rs 480 crore and Rs 191 crore, respectively, in the financial year.
IndiGo’s revenues increased 65.4 per cent to Rs 9,458 crore in 2012-13 from Rs 5,718 crore the previous year. The airline was a major gainer also in market share, which rose to 28.1 per cent from 22.2 per cent in 2012. Its Ebitdar (earnings before interest, tax, depreciation, amortisation and rent costs) margins stood at 18.6 per cent.
Read News In Full 24/09/13 Business Standard
No comments:
Post a Comment