New Delhi: Shares of InterGlobe Aviation, parent company of IndiGo, declined nearly 4 per cent on the bourses on Friday after the country's largest airline reported a 78 per cent decline in December quarter net profit at Rs 549.1 crore. The stock depreciated 3.87 per cent to Rs 4,723.60 apiece on the BSE. On the NSE, InterGlobe Aviation's scrip dropped 3.79 per cent to Rs 4,722.50 apiece.
The 30-share BSE Sensex slipped 46.24 points, or 0.06 per cent, to 82,261.13, while the NSE Nifty went lower by 8.20, or 0.03 per cent, to 25,281.70. India's largest airline, IndiGo, on Thursday reported a 78 per cent decline in net profit for the December quarter to Rs 549.1 crore, as flight disruptions and the implementation of the new labour code took a toll on its earnings.
The airline reported a net profit of Rs 549.1 crore in the October-December quarter, compared with Rs 2,448.8 crore earnings in the year-ago period, according to a company statement. The company said it took a hit of Rs 1,546.5 crore in the third quarter. This included Rs 577.2 crore due to massive flight disruptions witnessed during early December and another Rs 969.3 crore on account of the implementation of new labour laws.
IndiGo was slapped with a fine of Rs 22.2 crore for the flight disruptions, which it has accounted for in exceptional items. In the third quarter of the current financial year, InterGlobe Aviation, the parent of IndiGo, recorded a total income of Rs 24,540.6 crore, higher than Rs 22,992.8 crore posted in the year-ago period. IndiGo CEO Pieter Elbers said the company faced major operational disruptions in the December quarter, resulting in significant flight cancellations and delays from December 3 to 5.
"Despite these operational disruptions, IndiGo delivered a topline of around 245 billion rupees in the December quarter, reflecting a growth of around 7 per cent with a reported profit of around 5 billion rupees and an underlying profit excluding exceptional items and forex of 31 billion rupees," Elbers said. In early December, IndiGo faced massive operational disruptions, and subsequently, the Directorate General of Civil Aviation (DGCA) curtailed the airline's winter schedule by 10 per cent until February 10.
Between December 3 and 5, 2,507 flights were cancelled, and 1,852 flights were delayed, impacting over 3 lakh passengers at airports across the country, the regulator said in a statement on January 20.
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