New Delhi, Sep 10 (IANS) Budget passenger carrier IndiGo posted its seventh straight year of profit in the last fiscal with an exponential growth of over 300 percent to Rs.1,304 crore.
According to a regulatory submission made by the low cost carrier (LCC) to aviation regulator Directorate General of Civil Aviation (DGCA), its net profit for the fiscal under review grew by 311.35 percent to Rs.1,304 crore from Rs.317 crore in 2013-14.
As per the financial submission, the profit before tax stood at Rs.1,847 crore.
The airline’s financial report which was submitted to the DGCA on Wednesday revealed that its total revenue last fiscal jumped by 25.09 percent to Rs.14, 320 crore from Rs.11,447 crore.
Net margin for the fiscal under review grew by 9.4 percent.
The exponential rise in the airline profits can be explained by the fact that the period under review saw massive corrections in oil prices which between $130-$40 a barrel.
The fuel cost constitutes nearly 40-45 percent of an airlines operating costs. The addition of state levied value added tax (VAT) makes aviation fuel extremely expensive in India.
The data submitted to the DGCA indicated a rise in capacity during 2014-15. The available seat kilometers (ASKs) which measures available passenger capacity grew from 29.9 million to 35.3 million.
Furthermore, the airline has firmed-up its earlier order of 250 Airbus A320 neo aircraft. The deal is expected to be worth a little over $25 billion.
At present it has a total order of 430 airplanes. Apart from the recent order, the airline had placed an order for 100 A320s in 2005 and 180 A320neo in 2011.
The airline had inducted new independent directors in its board namely M.D.Mallya, who is former chairman of Bank of Baroda and Dr.Anupam Khanna formerly with the World Bank.
The company added 17 new aircraft in its fleet during 2014-15. Currently it operates 97 aircraft offering 648 flights a day.
With increase in operations, the airline hired 1,400 new employees in the period under review.
The airline which a month back celebrated its ninth year of operations, plans to list its shares through a proposed initial public offering (IPO).
The airline’s holding company InterGlobe Aviation had filed a draft red herring prospectus (DRHP) with the Securities Exchange Board of India (SEBI) in relation to a proposed IPO in June.
IndiGo is India’s largest airline by domestic market share. It had a market share of 35.8 percent in July, 2015.