New Delhi: Inter Globe Aviation Ltd, which owns budget carrier IndiGo, on August 1 reported around 7.4 per cent decline in net profit at Rs 591.77 crore for the second quarter ended June saying it was due to competitive ticket pricing.
The company had posted a net profit of Rs 638.89 crore in the same period last fiscal. Total revenue during the April-June quarter of the current fiscal rose 9.7 per cent to Rs 4,741.45 crore as compared to Rs 4,211.54 crore in Q1FY16, IndiGo said in a release.
"Profitability was lower than last year primarily because of competitive fare pressures. We have reduced our debt by Rs 458.9 crore during the quarter," IndiGo President and Whole-time Director Aditya Ghosh said.
In the quarter ended June 30, the Gurgaon-based budget carrier reported a 6.9 per cent increase in passenger revenue at Rs 3971.73 crore while ancillary revenues spiked 20.8 per cent at Rs 580.57 crore as compared to Q1FY16.
The seat occupancy during the April-June quarter of the current fiscal declined 4.7 per cent to 83.3 per cent compared to 88.0 per cent in the same period last fiscal. The airline's total debt reduced to Rs 2785.7 crore on June 30, from Rs 3244.6 crore on March 31, primarily due to retirement of debt of three aircraft on finance lease, according to the release.
"The entire debt for IndiGo is aircraft related and the airline does not have any working capital debt," it said.
