Stocks

InterGlobe Aviation shares plunge nearly 5% after disappointing Q1 earnings

PTI New Delhi | Updated on July 28, 2021

Earlier, it had reported a ₹3,174 crore loss in Q1 due to a sharp decline in revenues.

Shares of InterGlobe Aviation on Wednesday tumbled nearly 5 per cent after the company reported a net loss of ₹3,174 crore for the three months to June.

The stock plummeted 4.67 per cent to ₹1,627 at the BSE. At the NSE, it tumbled 4.59 per cent to ₹1,626.45.

InterGlobe Aviation, parent of the country's largest airline IndiGo, on Tuesday, reported a net loss of ₹3,174 crore for the three months to June, primarily due to a sharp decline in revenues amid the second wave of the coronavirus pandemic.

The earnings were announced post market hours on Tuesday.

The airline, which had a fleet of 277 planes at the end of June 2021, incurred a net loss of ₹2,844 crore in the year-ago period. The carrier's consolidated total income increased by 177.2 per cent to ₹3,170 crore in the first quarter of the current fiscal, it said in a statement. The total income stood at ₹1,143 crore in the first quarter of the previous financial year.

The airline's total expenses increased by 59.2 per cent to ₹6,344 crore in Q1 of 2021-22, compared to ₹3,986 crore earlier.

The company's CEO Ronojoy Dutta said, "our financial results for the first quarter were severely impacted by the second COVID wave. The number of passengers travelling declined sharply in the months of May and June."

Published on July 28, 2021

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