Indigo debt has swollen by seven times in one year
- Higher operating costs drove
Indigointo the red for the second quarter as it declared a net loss of ₹1,064 crore.
- The loss has widened from ₹651.5 crore it posted in the same quarter last year.
- Ahead of its quarterly announcement, Indigo traded flat as it went up by 0.8% to ₹1,665, as per
Bombay Stock Exchange(BSE).
This is due to increased operating leases and higher maintenance costs
It also declared a net loss of ₹1,064 crore. The loss has widened from ₹651.5 crore it posted in the same quarter last year. And, this is in spite of the fact that its revenue increased by 31% to ₹8,105 crore.
“In a historically weak quarter, we registered a negative profit before tax margin of 12.7% compared to 16% margin loss registered in the same quarter last year,” said CEO Ronojoy Dutta.
Ahead of its quarterly announcement, Indigo traded flat as it went up by 0.8% to ₹1,665, as per Bombay Stock Exchange (BSE). The results were announced after the market was closed.
The stock has been taking a beating for the last one month due to rising fuel prices and declining passenger traffic.
Indigo had a fleet of 235 aircraft and operated 1,437 daily flights during the quarter to 70 destinations including 17 international cities.
Interglobe Enterprises promoters — Rahul Bhatia and Rakesh Gangwal — hold 74.8% stake in the company.
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