InterGlobe Aviation stock crashes nearly 19%

PTI Updated - January 19, 2018 at 06:05 PM.

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Shares of InterGlobe Aviation, which operates India’s largest airline IndiGo, today witnessed heaving selling, plummeting nearly 19 per cent on investor concerns over the targeted fleet size by March due to delay in supply of more fuel-efficient planes by Airbus.

After a weak opening, the stock further cracked by 18.78 per cent to Rs 972.50 on the BSE. On the NSE, the shares plunged 17.41 per cent to Rs 989.30.

InterGlobe Aviation had yesterday reported a 23.7 per cent jump in net profit at Rs 657.28 crore for the three months to December, but said it will miss the 111-fleet target by March following labour issues at Airbus.

The delays could throw a spanner in the ambitious growth plans of IndiGo, which has been betting on the more fuel-efficient A320 Neos (new-engine option), the delivery of which was to start from this month and had even told this to investors during the recent IPO launch.

The carrier, which got listed in November 2015, had posted a net profit of Rs 531.57 crore in the year-ago period.

IndiGo’s revenues climbed to Rs 4,407.49 crore in the third quarter of this fiscal, an increase of nearly 12 per cent compared with Rs 3,938.79 crore in the same period a year ago.

Published on January 22, 2016 08:10