 "InterGlobe Aviation falls on disappointing Q1 earnings")
InterGlobe Aviation (IndiGo) dipped 7% to Rs 906 on the BSE in early morning trade after the company reported 7.3% year on year (YoY) decline in net profit of Rs 592 crore for the quarter ended June 30, 2016 (Q1FY17) due to higher non-fuel expenses. The country’s largest airline had profit of Rs 639 crore in the year-ago quarter.
Total income from operations in Q1 FY17 increased 8.5% to Rs 4,545 crore as against Rs 4,189 crore in the same period the previous year. The airline’s profit was boosted by a 47% rise in other income, which stood at Rs 162 crore on a YoY basis.
Finance cost of the company during the quarter under review increased 62% at Rs 116 crore, while aircraft and engine rentals charges rose 25% at Rs 713 crore over the previous year quarter.
The company said the profitability was lower than last year primarily because of competitive fare pressures.
The A320neo operations continue to be a challenge and we are looking at slowing down the A320neo deliveries to allow Pratt and Whitney to catch up on the production of upgraded engines, it added.
At 09:34 am, the stock was down 5% at Rs 924 on the BSE, as compared to 0.32% rise in the S&P BSE Sensex. A combined 664,374 shares changed hands on the counter on the BSE and NSE.
Total income from operations in Q1 FY17 increased 8.5% to Rs 4,545 crore as against Rs 4,189 crore in the same period the previous year. The airline’s profit was boosted by a 47% rise in other income, which stood at Rs 162 crore on a YoY basis.
Finance cost of the company during the quarter under review increased 62% at Rs 116 crore, while aircraft and engine rentals charges rose 25% at Rs 713 crore over the previous year quarter.
The company said the profitability was lower than last year primarily because of competitive fare pressures.
The A320neo operations continue to be a challenge and we are looking at slowing down the A320neo deliveries to allow Pratt and Whitney to catch up on the production of upgraded engines, it added.
At 09:34 am, the stock was down 5% at Rs 924 on the BSE, as compared to 0.32% rise in the S&P BSE Sensex. A combined 664,374 shares changed hands on the counter on the BSE and NSE.
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