Shares of InterGlobe Aviation Ltd, owner and operator of India’s largest domestic carrier by market share - IndiGo, opened at a loss of Rs 5.40 percent at Rs 786.65 on Thursday, a day after the company posted first-ever quarterly loss since its market debut in 2015.
IndiGo shares traded at Rs 850.80, higher by 4.17 percent on the NSE at 2:48 pm. It rose to an intra-day high of Rs 859.50, rising by 5.15 percent.
The stock came under pressure after the company on Wednesday posted a loss of Rs 652.1 crore for the quarter ended September 30, due to high fuel cost, rupee depreciation and intense competition. The aviation company posted its first loss since listing on the stock exchange in November 2015.
The company's revenue from operations rose 16.9 percent to Rs 6185.3 crore for the quarter. Fuel cost jumped 84.30 percent to Rs 3,035.50 crore in this quarter over Rs 1,647.30 crore for the same period last year.
Tax expenses for the quarter stood at Rs 7,502.30 crore, an increase of 58.20 percent over the same quarter last year.
Earnings before interest, tax, depreciation and amortisation and rental cost, (EDITDAR) declined 93 percent to Rs 111 crore for the quarter.
InterGlobe’s shares have dived over 30 percent so far this year amid intense competition, which has limited its ability to raise fares, putting pressure on yields.
Brokerage firm Credit Suisse retains "neutral" rating on the stock, but has cut price target to Rs 940 from Rs 1,000 per share. It said that capacity addition can keep yield unde pressure.
Citi downgraded the stock to "sell," at a target price of Rs 720 from Rs 850 per share although the brokerage says it expects an improvement in the second half.
First Published: IST