InterGlobe Aviation Ltd., owner of India's largest low cost carrier IndiGo, reported a 23.6 percent rise in net profit during the July to September quarter, but fell short of street estimates.
Net profit rose to Rs 140 crore in the second quarter of financial year 2016-17, from Rs 113 crore in the same quarter last year, missing estimates put out by analysts tracked by Bloomberg who had pegged the figure at Rs 178.5 crore.
Revenue rose 18.9 percent to Rs 4,327 crore, from Rs 3,638 crore, according to the company's financial results posted on the exchanges. Other income stood at Rs 161 crore as of September 31, 2016.
Earnings before interest, tax, depreciation and amortisation and rent cost (EBITDAR) went up 11.7 percent to come in at Rs 977.4 crore. EBITDAR margin dipped 120 basis points to come in at 23.5 percent.
The company's press release acknowledged that the performance was adversely impacted by “operational issues arising out of A320neo engines”. IndiGo also added nine new aircraft during the quarter, which included 6 new A320neos, and 3 used A320ceos which were leased on a short-term operating basis, the release added.
Market Share
IndiGo airline's market share has grown more than 10 percent over the last two years, dropping only once in the third quarter of 2015. It now holds 39.9 percent of the total domestic passenger traffic, shows the data complied by the Directorate General. Its leadership position in the Indian civil aviation space, has helped boost the company's performance this quarter.
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