IndiGo surprises analysts with Rs 550 cr profit in FY10

Mumbai: Low-fare airline IndiGo on Tuesday surprised the analyst community by stating it has managed to grow its net profit more than five times to Rs 550 crore in 2009-10. The unlisted airline cited lower costs and higher revenues but did not furnish further details of the leap. “There is a substantial growth in revenues. We also added more aircraft and as a result of this our available seat kilometres measures (ASKMs) have gone up by 28%,” Aditya Ghosh, CEO, IndiGo, told ET. IndiGo’s revenue increased 35% to Rs 2664.5 crore for the year.
“IndiGo’s results are a surprise, specially the net profit margin on revenues of Rs 2664.5 crore. This has not been achieved by any carrier so far,” said Rashesh Shah, analyst, ICICIdirect.com.
IndiGo is one of India’s three stand-alone low-fare airlines and is promoted by the Interglobe Group. It is in the process of selling shares in an initial public offer (IPO). JM Financial Services is the banker to the proposed issue. “The banks are looking at the financing options and it’s too early to say anything,” said Mr Ghosh. He denied reports that an IPO will be out within six to seven months. Its nearest and biggest competitor in this space is SpiceJet, which is expected to post a net profit of Rs 200 crore for the year ending March 2011.
06/10/10 Manisha Singhal/Economic Times

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Categories: Indigo Airlines Oct 2010