Home >Market >Stock-market-news >IndiGo shares fall 19% after Q3 results
The fall in the stock is the steepest since the stock listed on the exchanges on 10 November. Photo: Ramesh Pathania/Mint
The fall in the stock is the steepest since the stock listed on the exchanges on 10 November. Photo: Ramesh Pathania/Mint

IndiGo shares fall 19% after Q3 results

Intraday, the stock fell 20% and touched a low of Rs958 a share, a level last seen on 11 November

Mumbai: Shares of InterGlobe Aviation Ltd, which runs IndiGo Airlines, hit 20% lower circuit, a day after the company reported a 24% jump in net profit for the quarter ended December 2015.

The fall in the stock is the steepest since the stock listed on the exchanges on 10 November.

Intraday, the stock fell 20% and touched a low of 958 a share—a level last seen on 11 November.

On Thursday, the company reported a net profit of 657.28 crore in December quarter as compared to 531.56 crore a year ago. Net sales rose 11.9% from a year ago to 4,407.50 crore.

Last month, the company said that it has a notification from plane maker Airbus SAS saying delivery of the A320neos will be delayed due to industrial reasons.

“... on 17 December 2015, the company has received a notification from Airbus that the delivery of the first A320neo aircraft has been delayed due to industrial reasons. At this point, the company does not have a clear visibility of its future A320neo delivery schedule and the potential of additional delays exist. The company is looking at mitigating the potential shortfall in capacity through other options," the airline said in a note to investors on Thursday.

IndiGo was supposed to start taking delivery of its A320neos by the end of 2015.

Rival Jet Airways (India) Ltd and SpiceJet Ltd are yet to announce their earnings.

According to a poll of four Bloomberg analysts, Jet Airways may post a net profit of 334.40 crore on net sales of 5,668.90 crore. Analysts expects SpiceJet to post a net profit of 104.60 crore on net sales of 1,362.40 crore.

Shares of InterGlobe Aviation closed 19.10% lower at 968.75 apiece.

Shares of Jet Airways closed at 617.35 on BSE, down 6.36% from previous close while SpiceJet fell 5.03% to 70.85. India’s benchmark Sensex Index rose 2% to 24,435.66 points.

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