Shares of InterGlobe Aviation, which owns budget carrier IndiGo, today plunged over 11 per cent amid decline in quarterly profit and concerns over operational issues with its new aircraft fleet.
At the end of today's trading session, the stock was quoted at Rs 865.20, down 11.17 per cent on the BSE, following which the market capitalisation of the company eroded by Rs 3,928.1 crore to Rs 31,251.35 crore.
The company yesterday reported around 7.4 per cent decline in net profit at Rs 591.77 crore for the first quarter ended June saying it was due to competitive ticket pricing.
The company had posted a net profit of Rs 638.89 crore in the same period last fiscal.
Reacting to the development, shares of the company opened on a weak note and then touched an intra-day low of Rs 860.25, down 11.67 per cent over its previous closing price on the BSE.
Similar movement was witnessed on the National Stock Exchange, where the stock opened at Rs 921, then fell to an intra-day low of Rs 860.25 and finally ended the day at Rs 866.05.
Total revenue during the April-June quarter of the current fiscal rose 9. 7 per cent to Rs 4,741.45 crore as compared to Rs 4,211.54 crore in April-June of the last fiscal, IndiGo said in a release.
"Profitability was lower than last year primarily because of competitive fare pressures. We have reduced our debt by Rs 458. 9 crore during the quarter," IndiGo President and Whole-time Director Aditya Ghosh said on Monday.
He also acknowledged that A320 neos aircraft continue to pose "operational challenges".
"Operationally, A320 neo continues to be a challenge. We are currently looking at a scenario where we would slow down the delivery of our A320 neo aircraft to allow (engine maker) Pratt & Whitney catch up with the production of updated engine," he had said.
The airline's total debt reduced to Rs 2,785.7 crore on June 30, from Rs 3,244.6 crore on March 31, primarily due to retirement of debt of three aircraft on finance lease, according to the release.
