Shares in Interglobe Aviation crashed a huge 11 per cent in trade, even as net profits of the company soared. The stock was last trading at Rs 1060 on the NSE, down more than 11 per cent in trade.
This was the first quarterly numbers declared by the company since being listed last year. While the net profits were excellent, the fall in the stock can be attributed more to the fact that the results were already in the price.
Moreover, this morning crude oil has seen a rally. A crude oil rise and share prices of company tend to move in opposite directions, as aviation turbine fuel, forms bulk of the cost for a aviation company.
Indigo may continue to post good quarterly numbers, as long as crude oil prices fall. The company's expansion plan, may also see good growth momentum in the coming years.