Friday, September 11, 2015

Why Indigo proves once again its IPO will have many takers

Mumbai: Indigo could not have wished for a better timing for its phenomenal performance. The company is planning to tap the primary markets to raise money for its future growth capital, and its record profit just made that job easier.

In FY15, the company posted a profit of Rs 1,304 crore - a growth of 2.8 times as per the company’s filling in its offer document. The sharp jump in profit has been despite its revenue growing by only 22% to Rs 13,925 crore. Profit before tax rose to Rs 1,847 crore from Rs 471 crore in the previous year.

Low fuel prices contributed largely to a higher bottom line jump in profits for Indigo. But low fuel was an advantage that was available to all airline companies. Yet, Indigo is the only one to post profits.

Against revenues of Rs 20,965 crore Jet Airways posted a loss of Rs 2,097 crore while SpiceJet on revenue of Rs 5,201 crore reported losses of Rs 687 crore
11/09/15 Shishir Asthana/Business Standard
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