New Delhi: Shares of InterGlobe Aviation, the operator of IndiGo touched 52-week high on Tuesday rising almost 3% after the company reported a five-fold quarterly rise in the fourth quarter result on Monday.
Net profit of the company rose to ₹589.59 crore in the quarter ended 31 March from ₹117.64 crore a year earlier. The full-year profit, however, fell 93%, the steepest since the company started trading publicly in 2015.
Shares of IndiGo touched 52-week high on Tuesday soaring 3.18% to ₹1,716 on both National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) against the previous close level of ₹1,663 on the BSE. The stock was trading at ₹1,669.85 up 0.41% on BSE at 2 pm while on NSE shares were up 0.23% at ₹1,666 at the same time.
Revenues of InterGlobe were up 24% YoY at ₹28,500 crore, with EBITDAR at ₹4,790 crore (-27% YoY), led by higher fuel cost and other expenditure.
After the company’s Q4 result announcement, many brokerages also changed their views for the company. “We change our rating to accumulate from buy with a revised target price of ₹1,927 from ₹1,945 as the stock has run up by 49% in three months and we lower our FY20E EPS," Elara Capital said in a report.
Brokerages believe that the profitability of IndiGo was driven by strong PAX yield growth of 12% YoY (in-line with JMfe) led by capacity disruption due to Jet fallout / grounding of MAX aircraft, company’s initiatives such as route optimisation / change in sales channel mix.
“IndiGo is expected to grow its capacity by 30% in 1QFY20 and FY20. Management guided that the impact of the yield increase due to the grounding of Jet Airways was seen primarily in Apr’19. The impact had come down in May’19 and is likely to completely nullify in June'19 due to ongoing capacity addition," said Motilal Oswal Financial Securities in a report. The brokerage continues to remain cautious about the stock and maintains its neutral stance.
According to data from Directorate General of Civil Aviation (DGCA) last week, IndiGo had clocked 49.9% market share in the domestic market during April, its highest ever since inception as a schedule carrier in 2006, as it flew a record 54.81 lakh passengers during the month.