InterGlobe Aviation shares close over 2 pc lower after disappointing Q1 earnings

Shares of InterGlobe Aviation on Wednesday closed the day over 2 percent lower after the company reported a net loss of Rs 3,174 crore for the three months to June.

The stock plummeted 4.67 percent to Rs 1,627 at the BSE during the day. It closed at Rs 1,667.10, lower by 2.33 percent.

On the NSE, it tumbled 2.49 percent to close at Rs 1,662.25.

InterGlobe Aviation, a parent of the country's largest airline IndiGo, on Tuesday, reported a net loss of Rs 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 Rs 2,844 crore in the year-ago period.

The carrier's consolidated total income increased by 177.2 percent to Rs 3,170 crore in the first quarter of the current financial year, it said in a statement.

The total income stood at Rs 1,143 crore in the first quarter of the previous financial year.

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

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