Mumbai: Shares of low cost passenger airline Indigo, Interglobe Aviation Limited are on a trip down south on Thursday, triggered by a sharp fall in fourth quarter earnings.
The stock, currently down 12.5% at Rs 1180.25 on BSE, touched a low of 1111.30 in early trades today. On the National Stock Exchange, the stock declined to a low of Rs 1077.55 and is currently at Rs 1177, down 12.4% from its previous closing price.
On NSE, the Interglobe counter has clocked a volume of 9.9 million shares so far in the session. On BSE, the counter has clocked a volume of about 5.54 million shares so far today, nearly 10 times the average daily volume of 57,000 shares.
The stock, which was hovering around Rs 1005 about this time last year, touched a record high of Rs 1520 on 20 April 2018.
After trading hours on Wednesday, the airliner reported a net profit of R 117.64 crore for the quarter ended March 2018, down as much as 73.3% compared to year-ago quarter. Net sales increased 19.6% to Rs 5799.11 crore in the fourth quarter. Higher fuel prices, decline in yields and foreign exchange impact contributed to the significant drop in profits in the March 2018 quarter.
Interglobe Aviation's EBITDAR declined 21.9% to Rs 1132.10 crore in the January - March 2018 quarter, compared to year-ago period. EBITDAR Margin declined to 19.5% in the quarter from about 30% in the year-ago quarter.
For the year ended March 2018, Interglobe Aviation posted a net profit of Rs 2242.37 crore, up 35.1% over the preceding year. Net sales increased 23.9% in the year to Rs 23,020.389 crore. The airliner's total debt stood at Rs 2452.70 crore as on 31 March 2018.
During January - March 2018 quarter, Directorate General of Civil Aviation had grounded a few of IndiGo's Airbus A320neo aircraft due to the ongoing Pratt & Whitney engine issue pertaining to the model. DGCA had asked IndiGo to ground as many as eight of its A320neo aircraft. The grounding of aircrafts too caused the drop in earnings of the airliner in the past three months.
Meanwhile, according to reports, the Securities and Exchange Board of India is looking into a plunge in shares of InterGlobe Aviation Ltd just before the company announced the departure of its top executive Aditya Ghosh in April. The market regulator is also checking if the company disclosed the resignation news in time, and if there are any violations of insider trading rules.
Ghosh stepped down as InterGlobe’s whole-time director with effect from 26 April, however, the news was disclosed to stock exchanges only on the evening of 27 April, a full 24-hours later. On April 27, the stock declined by about 6%.
However, Indigo has stated that it has not received any query from the market regulator in this regard.