Shares of IndiGo fell over 4% on Friday with the stock trading at Rs 4852 apiece. The drop comes after the aviation major shared its Q3 earnings on Thursday.
India's largest airline IndiGo on Thursday reported a 77.6% decline in Q3 net profit at Rs 549.1 crore (PAT) as flight disruptions and implementation of the new labour code took a toll on its earnings. The airline reported a net profit of Rs 549.1 crore in the October-December quarter, compared with Rs 2,448.8 crore earnings in the year-ago period, according to a company statement.
The company said it took a hit of Rs 1,546.5 crore in the third quarter. This included Rs 577.2 crore due to massive flight disruptions witnessed during early December and another Rs 969.3 crore on account of the implementation of new labour laws. IndiGo was slapped with a fine of Rs 22.2 crore for the flight disruptions, which it has accounted for in exceptional items, reported news agency PTI.
IndiGo. (Photo: IndiGo Exchange Filing)
In the third quarter of the current financial year, InterGlobe Aviation, the parent of IndiGo, recorded a total income of Rs 24,540.6 crore, higher than Rs 22,992.8 crore posted in the year-ago period, according to PTI.
IndiGo CEO Pieter Elbers said in the December quarter, the company faced major operational disruptions that resulted in significant flight cancellations and delays from Dec 3 to 5. In the December quarter, the airline carried nearly 32 million passengers, and the total number of passengers flown last year stood at around 124 million.
IndiGo Share Price Today
The scrip fell as much as 4.19% to Rs 4,852 apiece on Friday. This compares to a 0.03% growth in the NSE Nifty 50 Index.
Total traded volume so far in the day stood at 1.32 times its 30-day average. The relative strength index was at 41.26, as per Bloomberg.
Out of 26 analysts tracking the company, 21 maintain a 'buy' rating, three recommend a 'hold,' and two suggest 'sell,' according to Bloomberg data. The average 12-month consensus price target of Rs 5772.79 implies an upside of 18.9%.
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