 "IndiGo extends fall; down over 5%")
Shares of InterGlobe Aviation (IndiGo) have dipped 7% to Rs 802, extending its previous day’s nearly 2% fall on the National Stock Exchange (NSE), erasing its entire previous week gain.
The stock of India’s largest airline by market share, last week, had gained 8% as compared to 7% rise in the Nifty 50 index after the IndiGo announced that it will receive its first Airbus A320neo aircraft this month and will induct 24 planes of the type till March 2017.
The stock of India’s largest airline by market share, last week, had gained 8% as compared to 7% rise in the Nifty 50 index after the IndiGo announced that it will receive its first Airbus A320neo aircraft this month and will induct 24 planes of the type till March 2017.
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The airline said "Airbus has confirmed that beginning with March 2016, it will deliver 24 fuel efficient A320neo aircraft by March of 2017 as compared to the original plan to deliver 26 A320neos”.
The airline however said its net profit for the ongoing quarter will be hit because of the continued weakness in the rupee.
“In the fourth quarter (January-March) of fiscal year 2016, while year-over-year capacity is expected to grow by about 19%, EBITDAR (earnings before interest, taxes, depreciation, amortisation and lease rentals) margins are expected to be strong at around 35% to 37% and at last year’s levels.
However, for the fourth quarter, year-over-year revenue is expected to increase by 6% to 8% and net profit will also be impacted due to the exchange rate movement in the Indian Rupee versus the US Dollar, it added.
At 02:00 pm, the stock was down 5% at Rs 817 on the BSE as compared to 0.08% rise in the benchmark index. A combined 1.07 million shares changed hands on the counter on the BSE and NSE so far.
