IndiGo shares plunge to seven month low on dismal earnings

Citi cut its target price to Rs 1,240 from Rs 1,600, while Morgan Stanley trimmed it to Rs 1,205 from Rs 1,213

Shares of InterGlobe Aviation Ltd plunged nearly 20 per cent on Thursday to a seven-month low and wiped out Rs 101.13 billion ($1.52 billion) in market capitalisation after the owner of India’s biggest carrier IndiGo reported dismal quarterly earnings.

InterGlobe reported a 73 per cent slump in its fourth-quarter profit after market hours on Wednesday, hurt by a 33.5 per cent surge in fuel costs, lower yields and foreign exchange losses.

The company is seeing yield pressures in the industry, InterGlobe said in an analyst call on Wednesday, adding that fares in the zero to 15-day booking window were “materially