InterGlobe Aviation stock plummets 20% on delay in supply of planes

Shares of InterGlobe Aviation, which operates India's largest airline IndiGo, on Friday witnessed heaving selling, plummeting 20% on investor concerns over the fleet size targeted by March due to delay in supply of more fuel-efficient planes by Airbus.

After a weak opening, the stock fell 18.78% to Rs 972.50 on BSE. At 1415 hours, the shares of InterGlobe Aviation were trading slightly up from the day's low but still over 16% below the red line. The stock was trading down 16.81% or Rs 201.25 lower at Rs 996.25 per scrip on the BSE.  

At NSE, the shares of the company plunged 17.41% to Rs 989.30.

ALSO READ: IndiGo's parent Interglobe Aviation's Q3 profit jumps 24% to Rs 657 crore

InterGlobe Aviation on Thursday reported a 23.7% jump in net profit at Rs 657.28 crore for the three months to December but said it will miss the 111-fleet target by March following labour issues at Airbus.

The delays could throw a spanner in the ambitious growth plans of IndiGo, which has been betting on the more fuel-efficient A320 Neos (new-engine option), the delivery of which was to start from this month and had even told this to investors during the recent Initial Public Offering (IPO) launch.

The carrier, which got listed in November 2015, had a net profit of Rs 531.57 crore in the year-ago period. 

IndiGo's revenues climbed to Rs 4,407.49 crore in the third quarter (Q3) of this fiscal, an increase of nearly 12% compared to Rs 3,938.79 crore in the same period a year ago.