Pages

Friday, January 22, 2016

IndiGo Shares Crashed 20% Despite Record Quarterly Profit Friday January 22,2016

IndiGo shares crashed 20 % on Friday January 22,2016, a day after India's biggest carrier reported a record profit at Rs 657 crore in the December quarter
InterGlobe Aviation, the company that runs IndiGo, closed 19 per cent lower at Rs 968.75 as compared to 2 per cent gain in the broader Sensex

Jet Airways closed 6.3 % lower at 617.35, while SpiceJet ended 5 % lower at Rs 70.85. 

The sharp selloff in IndiGo shares, despite strong quarterly performance, puzzled investors and triggered selling in other carriers such as Jet Airways and SpiceJet.

IndiGo's second quarter numbers, and not the third, are to blame for the selloff in its shares today.

IndiGo's nine-month performance in FY16 was much below estimates due to a sharp fall in profitability in the second quarter, where net profit declined to Rs 110 crore from Rs 640 crore in the first quarter

IndiGo's Q2 results were not known to traders as the budget carrier was preparing to launch its initial public offer (IPO) in October. IndiGo made its market debut on November 10,2015 and this is the first time it has reported numbers since getting listed

No comments:

Post a Comment