Shares of Interglobe Aviation, which owns budget carrier IndiGo, could fall when trading commences on Wednesday, in response to the company's weak Q4 results. Net profit fell 24.6 percent to Rs 440 crore in comparison to Rs 584 crore in the year-ago period. The operating profit margin (EBIDTAR) dropped to 29.9 percent from 37.9 percent for March 2016 quarter.
IndiGo is India's largest Indian carrier in terms of domestic air traffic, with about 39 percent market share.
Read: India's civil aviation market slows down after a period of hyper growth
The fall in net profit was mainly due to 71 percent rise in fuel costs to Rs 1,750 crore for Q4 as against Rs 1,024 crore in the corresponding period last year. Overall costs stood at Rs 4,523 crore, up 30.8 percent from Rs 3,458 crore in the year earlier, according to regulatory filings by Interglobe Aviation on Tuesday after trading hours.
Revenues from operations grew 18.5 percent to Rs 4,848 crore for Q4 from Rs 4,090 crore for the corresponding period last year.
For 2016-17, net profit fell 16.5 percent to Rs 1,659 crore while it was Rs 1,986 crore in the preceding fiscal. Revenues rose 15.1 percent to Rs 18,580 crore.
The company declared a dividend of Rs 34 per share for 2016-17.
Fleet size and expansion
The company said it has signed agreement with French aircraft maker Avions de Transport Regional GIE for the purchase of 50 ATR 72-600 aircraft; 20 of these are expected to be inducted by December next year.
Currently, it has a fleet of 170 A320 aircraft and operates about 930 flights daily.
Interglobe Aviation shares closed 1.79 percent higher at Rs 1,140 on the BSE on Tuesday.
It's competitor SpiceJet gained to hit a fresh 52-week high of Rs 124.50 before closing at Rs 123.40, up 1.82 percent from its previous close.
Full-service Jet Airways closed 1.17 percent higher at Rs 544.20.
Unlisted aviation companies include state-owned Air India, Vistara, AirAsia India, Air Costa, Zoom Air and GoAir.
