Interglobe Aviation Hits Fresh 52-Week Low After Weak Q1FY19 Results

Subscribe to GoodReturns
For Quick Alerts
ALLOW NOTIFICATIONS  
For Daily Alerts


    Interglobe Aviation stock
    , which owns the no-frill Indigo airlines, in Tuesday's session nosedived by over 10% to hit fresh 52-week low of Rs. 890.55 on the NSE after reporting disappointing set of first quarterly numbers for the FY2019.

    Interglobe Aviation Hits Fresh 52-Week Low After Weak Q1FY19 Results

    The net profit at the largest air-carrier declined by 97% to Rs. 28 crore on the back of higher fuel cost, rupee's fall-out, higher expense charges as well as lower yields. However, revenue at the company posted an increase of 13% on a year-on-year basis to Rs. 6,512 crore. Margin also saw a decline by almost 50% to 15.8% in comparison to 33.9%.

    It is to be noted that the fall in net profit for the quarter ended June has come in even after the company reported passenger growth more than the industry's average for the month of June. This is primarily owing to the carriers' losses due to forex losses and rising global fuel prices during the last 2 quarters.

    Meanwhile, brokerages also reduced their price targets for the stock by up to 22%. JP Morgan, global brokerage company downgraded the Interglobe aviation stock from overweight to neutral and cut its target price from Rs. 1, 150 earlier to Rs. 900.

    Also, there are other concerns lingering in the company such as the management considers the yield to be unsustainable given the increasing input cost. Also, the pricing pressure in the industry is weighing heavily on the company's yield and profitability.

    At 11:33 am, the stock of Interglobe Aviation was quoting lower by 8.30% at Rs. 921.65 on the NSE.

    Goodreturns.in

    Story first published: Tuesday, July 31, 2018, 11:37 [IST]
    Company Search
    Enter the first few characters of the company's name or the NSE symbol or BSE code and click 'Go'

    Find IFSC

    Get Latest News alerts from Goodreturns

    We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more