Aviation stocks were trading lower to a great extent during the early afternoon hours of trade on Tuesday after Gurugram-based budget air-carrier Interglobe Aviation (Indigo) reported a dip of 96.6% in net profit for Q1FY18. Indigo’s net profit fell to Rs 27.8 crore in the June quarter from Rs 811.1 crore in the corresponding period the earlier year. The company’s Q1 profits were reduced by higher fuel prices and the adverse impact of foreign exchange rates.
However, revenue showed an increase of 13 percent on a YoY to Rs. 6,512 crore. Margin also was saw a plunge by nearly 50% to 15.8% in comparison to 33.9%.
Following the development, Inter Globe Aviation Ltd stocks tanked on Tuesday, trading lower at Rs. 914.00 per share, down by 9.06%, while Spicejet was at Rs. 99.65 per share, down by 5.05 on the NSE, on Tuesday.
Meanwhile, global brokerage company like JP Morgan downgraded the Interglobe aviation stock from overweight to neutral and reduced its target price from Rs. 1,150 earlier to Rs.900.