IndiGo parent InterGlobe Aviation June quarter profit soars to Rs 1,203 cr; board meeting to continue tomorrow

IndiGo's parent InterGlobe Aviation saw its profit after tax zoom to Rs 1,203.1 crore for the three months ended 30 June 2019.

This is the highest ever quarterly profit, company's CEO Ronojoy Dutta said.

The company had reported a profit after tax of Rs 27.8 crore in the year-ago period, according to a filing to the stock exchanges on Friday, reported PTI.

In the latest June quarter, revenue from operations jumped nearly 45 percent to Rs 9,420 crore.

 IndiGo parent InterGlobe Aviation June quarter profit soars to Rs 1,203 cr; board meeting to continue tomorrow

Representational image. Reuters

IndiGo’s yield, a measure of the average passenger fare per mile, rose 12.8 percent, reflecting the rising passenger preference for the airline, which is now India’s biggest by market share, reported Reuters.

InterGlobe shares closed 0.28 percent higher on Friday amid a broader market that ended 1.53 percent down.

Meanwhile, the board of InterGlobe Aviation on Friday discussed a "range of issues", including appointment of a woman director, and the meeting will continue on Saturday, reported PTI.

The board meeting also comes against the backdrop of an ongoing spat between promoters Rakesh Gangwal and Rahul Bhatia over alleged corporate governance lapses.

During a conference call to discuss the June quarter financial results, Dutta said the board is discussing a whole range of issues.

The board discussed appointing a woman director and that would need changes in the company's Articles of Association (AoA), he said.

The board meeting would continue on Saturday, Dutta said.

The allegations raised by Gangwal brought InterGlobe Aviation under the regulatory scanner. Amid an investigation by market regulator Securities and Exchange Board of India (SEBI), the ministry of corporate affairs (MCA) reportedly recently sought “comments” from InterGlobe Aviation on the allegations levelled against the company by Gangwal recently.

Gangwal, who holds around 37 percent stake in InterGlobe Aviation, had flagged concerns about related-party transactions involving co-founder Bhatia's InterGlobe Enterprises (IGE) Group and the allegations have been refuted by the Bhatia camp.

Bhatia group has about 38 percent shareholding in the company.

On Thursday, InterGlobe Aviation, in a filing to the stock exchanges, said it received communication on Wednesday from the Ministry of Corporate Affairs (MCA) on allegations of corporate governance lapses raised by Gangwal.

The Registrar of Companies (RoC), National Capital Territory of Delhi & Haryana has sought "certain information/explanations" in relation to Gangwal's complaint.

With inputs from agencies

Updated Date: Jul 19, 2019 18:31:03 IST