IndiGo profit plunges 73%

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Largest airline in terms of market share Interglobe Aviation (Indigo) missed analysts estimates in both standalone bottom-line and top-line performance during the fourth quarter ended March 2018 results.

Interglobe Aviation's EBITDAR declined 21.9% to Rs 1132.10 crore in the January - March 2018 quarter, compared to year-ago period.

Last week, the company had announced that its president, Aditya Ghosh, would step down after 10 years with the company and it would consider naming Gregory Taylor, an airline sector veteran, as his successor in the coming months.

The low-priced carrier posted its highest ever profit after tax of Rs 2,242 crore for the year ended March 2018, an increase of 35.1 per cent compared to last year's Rs 1,656.98 crore.

According to the airline, the net profit during the quarter under review fell to Rs 117.64 crore from Rs 440.30 crore reported for the corresponding period of 2016-17. On a full year basis, profit after tax of ₹2,242 crore for the year ended March 2018, an increase of 35.1 per cent compared to last year.

"Based on our cash position - the cash required to purchase aircraft and the overall profitability for the year - the board of directors has recommended a dividend of Rs 6 per share for fiscal 2018, which is subject to approval of shareholders in our upcoming annual general meeting", Philip said. "We continue to execute on our growth plans and are putting in place the management team to execute our plans".

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For full year ended March 2018, revenue from operations came in at ₹23,020 crore, implying an increase of almost 24 percent compared to last year.

Further, he said the flight cancellation rate was higher in March due to issues with some of the neo planes.

The company said that results include certain credits received from manufacturers to offset some of the impact of aircraft groundings and delivery delays.

At the end of March, the company had a total debt of Rs 2,452.72 crore related entirely to aircraft.

For the current fiscal, the company said that "year- over-year capacity increase in ASKs (Available Seat Kilometres) is expected to be 25 per cent". However, the company would not shy away to take on the rivals with low pricing, as the airline's low-cost structure allows it to sustain temporary costs. The stock opened with a loss 4.39% at 1,289 level on BSE.

Hours after the market close that day, the airline announced the resignation of Ghosh at 7.56 pm.

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