Shares of InterGlobe Aviation, the company that runs IndiGo Airlines, plunged 9 per cent on after the company reported results for quarter ending June 30, 2016.
Indigo is India's largest airline with market share of 38.10 per cent in June 2016 and it is one of the fastest growing low cost carriers in the world.
Net profit of the airline company for the quarter fell to Rs 592 crore, against Rs 639 crore of previous year. InterGlobe Aviation total income from operations rose 8.7 per cent to Rs 4,579 crore.
InterGlobe Aviation's (EBITDAR) fell 1.46% to Rs 1553.76 crore in Q1 June 2016 against Q1 June 2015.
InterGlobe Aviation stated that the operation of A320neo planes in its fleet continues to be a challenge. The company is looking at slowing down taking deliveries of A320neo planes to allow the manufacturer to catch up on the production of upgraded engines for the A320neo planes, said in the BSE press release.
Shares of the low cost carrier were seen trading at Rs 867, lower by 10.97 per ent on BSE. It touched an intra-day low of Rs 861 during trade.