The InterGlobe Aviation stock fell up to 11.26% in trade today after the operator of IndiGo reported a 96.6 per cent fall in net profit at Rs 27.80 crore for June quarter. India's largest airline by market share had reported Rs 811.10 crore profit in the year-ago quarter.
At 12:05 pm, the InterGlobe Aviation stock was down 8.44% or 84.75 points to 919.50 on the BSE.
The stock fell to an intra day low of 891 level, down 11.26% on the BSE, its biggest fall since March 2017. It opened at 926 level, a fall of 7.79% compared to its previous close.
The large cap stock has been losing for the last two days and has fallen 8.50% during the period.
The stock is down over 28% during the last one year and 23.37% since the beginning of this year.
9 of 19 brokerages rate the stock "buy" or 'outperform', six "hold" and four "underperform" or "sell", according to Reuters.
Elara Capital has lowered the price target of InterGlobe Aviation stock to Rs 1,388 from Rs 1,606 with a "buy" rating. The brokerage expect's IndiGo's pricing power would return gradually during FY19 due to rising industry passenger load factor (PLF).
In its Q1 earnings announced yesterday, the aviation company cited adverse impact of foreign exchange, high fuel prices and the competitive fare environment for fall in profitability.
Aircraft fuel costs rose 54.4 per cent year-on-year during the quarter to Rs 2,715.60 crore compared with Rs 1759.2 crore in the year-ago quarter. However, sales from operations rose 13.2 per cent to Rs 651.20 crore in the quarter, compared with Rs 575.29 crore in the year-ago period, it said in a regulatory filing.
Total expenses for the quarter jumped by 40.5 per cent year-on-year to Rs 678.70 crore, while fuel cost shot up by 54.5 per cent to 271.56 crore, from Rs 175.92 crore in the year-ago period.
Besides, yield or average ticket price dropped to Rs 3.62 per km in the June quarter, against Rs 3.83 per km in the same period last year.
As of June 2018, the Gurugram-based company had a fleet of 169 aircraft including 124 A320ceos, 36 A320neos and 9 ATRs; a net increase of 10 aircraft during the quarter. The low-cost carrier, which flies 4 out of 10 Indians, operated a peak of 1,157 daily flights including international operations during the quarter.
Written and edited by Aseem Thapliyal