InterGlobe Aviation shares crash 11% on Indigo’s Q1 turbulence
Shares of InterGlobe Aviation, which owns budget carrier IndiGo, on Tuesday plunged over 11 per cent amid decline in quarterly profit and concerns over operational issues with its new aircraft fleet. At the end of Tuesday’s trading session, the stock was quoted at Rs 865.20, down 11.17 per cent on the BSE, following which the market capitalisation of the company eroded by Rs 3,928.1 crore to Rs 31,251.35 crore. The company on Monday reported around 7.4 per cent decline in net profit at Rs 591.77 crore for the first quarter ended June saying it was due to competitive ticket pricing.
The company had posted a net profit of Rs 638.89 crore in the same period last fiscal. Reacting to the development, shares of the company opened on a weak note and then touched an intra-day low of Rs 860.25, down 11.67 per cent over its previous closing price on the BSE. Similar movement was witnessed on the NSE, where the stock opened at Rs 921, then fell to an intra-day low of Rs 860.25 and finally ended the day at Rs 866.05. Total revenue during the April-June quarter of the current fiscal rose 9. 7 per cent to Rs 4,741.45 crore as compared to Rs 4,211.54 crore in April-June of the last fiscal.