You are here: Home » Markets » News
Business Standard

Aviation shares in focus; InterGlobe Aviation hits 52-week high

InterGlobe Aviation, SpiceJet and Jet Airways (India) were up in the range of 1% to 3% on BSE

SI Reporter  |  Mumbai 

IndiGo
IndiGo

Shares of aviation companies were trading higher for the third straight trading session after they reported a good set of numbers for the April-June quarter (Q1FY18).

InterGlobe Aviation, and were up in the range of 1% to 3% on BSE. On comparison, the S&P BSE Sensex was up 101 points or 0.32% at 31,872 at 10:26 am.

and SpiceJet, together, have reported 33% year-on-year (YoY) growth in combined net profit of Rs 984 crore against Rs 741 crore in year ago quarter.

InterGlobe Aviation, owner of India's largest airline IndiGo, hit a 52-week high of Rs 1,346, up 2% on BSE in intra-day trade. Thus far in calendar year 2017, the stock rallied 64% against 20% rise in the benchmark index.

InterGlobe posted a 37% increase in quarterly profit to Rs 811 crore, helped by higher passenger revenue as compared to profit of Rs 592 crore a year earlier. Passenger revenue rose 28% to Rs 5,078 crore in the quarter.

“Overall, we see better fundamentals for the industry for FY18, given lower capacity growth (engine issues at P&W) at a time when demand growth is high thanks to low yields, given low crude prices. This should set up a favorable industry profit outlook, provided crude prices remain range-bound,” analysts at JP Morgan said in report.

Profit spreads at will expand for the remainder of FY18, resulting in improved profitability, added report.

has witnessed a marked reduction in aircraft leasing costs, though up-fronting of maintenance activities during the quarter more than offset those gains. Given the cash accruals, the company does not foresee any challenges in complying with the SC order. With planned fleet induction, we expect to deliver industry leading growth of 20%+ in FY18,” according to an analyst at SBICAP Securities.

  Price on BSE in Rs  
Company 30/12/2016 LTP % chg
SpiceJet 57.20 132.15 131.0
Jet Airways 347.75 598.20 72.0
Interglobe Aviat 821.00 1333.25 62.4
       
Sensex 26626.46 31881.85 19.74
       
LTP : Last traded price on BSE in Rs at 10:31 am

First Published: Thu, August 17 2017. 10:49 IST
RECOMMENDED FOR YOU