Corporate tax cut, lower costs may take IndiGo out of air bubble

Change in board structure positive; consensus on RPT policy key factor

The stock of InterGlobe Aviation (IndiGo) has gained close to 8 per cent over the last three trading sessions, following a boost to net profit from the recent tax rate cut, as well as lower costs from newer plane inductions. The other trigger is the expansion of the board and inclusion of an independent director, which could be the first step in resolving the differences between the two founder-promoters. 

Among the gains for the company is the cut in corporation tax rate announced last week. Brokerages had factored in a tax rate of 29 per cent for FY20 and FY21, while