InterGlobe Aviation share price rises over 3% on strong Q3 earnings
BusinessToday.In January 28, 2020
Share price of InterGlobe Aviation, the parent company that operates IndiGo, rose over 3% on Tuesday after the airline booked over a two-fold jump in its net profit to Rs 496 crore during Q3 FY20, helped by lower fuel prices coupled with higher passenger growth.
Following the earnings update, InterGlobe Aviation share price soared to an intraday high of Rs 1,541.2, rising 3.24% on BSE. Volume-wise, 10 lakh and 27 lakh shares were trading on BSE and NSE, both above 5, 10, 30-day volume average. On Monday, InterGlobe Aviation share price closed 0.54% lower at Rs 1,492.85 apiece on the BSE, prior to the Q3 result update.
InterGlobe Aviation stock has risen 6% in a week, 13% in a month and 30% in a year. Interglobe Aviation stock price is trading higher than its 5, 20, 50, 100 and 200-day moving averages.
IndiGo reported a 168% rise (YoY) in consolidated net profit to Rs 495.97 crore for the quarter ended December 31, 2019, as against Rs 185.16 crore recorded in the year-ago period.
Total income of the Gurgaon-headquartered low-cost carrier rose 25.46% (YoY) to Rs 9,931 crore in the October-December quarter of the current fiscal as compared to Rs 7,916 crore in the same period last financial year.
Total expenses of the airline also increased by 21.5 per cent to Rs 9,773.6 crore, led by 409 per cent YoY jump in depreciation and amortisation expenses at Rs 1,037.70 crore.
The company's earnings before interest, taxes, depreciation, amortisation, and restructuring or rent costs (EBITDAR) soared by 17.2 per cent year-on-year (YoY) to Rs 1,960.7 crore from Rs 1,672.9 crore in the corresponding period of the previous year.
Commenting on Q3 earnings, IndiGo CEO Ronojoy Dutta said, "We started operations in seven new international routes and 17 new domestic routes and operated a peak of 1,634 daily departures during the quarter. I am very enthusiastic about the way we have been developing our network, connecting cities large and small to provide more choice to our customers. We have added small cities such as Shirdi and Shillong to our network while extending our reach to major cities such as Hanoi and Guangzhou.