Shares of this large-cap company jumped around 2 percent after they received IFSC Gift City approval to set up an aircraft leasing shop. The shares have delivered more than 40 percent to its shareholders on a YTD basis.
With a market capitalization of Rs. 1,14,794 crores, the shares of Interglobe Aviation Ltd started Wednesday’s trading session on a higher note at Rs. 2,963.95 compared to its previous close of Rs. 2,926.45. The shares hit a high of Rs. 3,007, gaining around 2 percent, which is also recorded as the company’s fresh 52-week high and the shares are currently trading at Rs. 2,976 apiece.
According to media reports, the parent company of India’s largest airline, IndiGo, Interglobe Aviation Ltd has received approval from IFSC Gift City to establish an aircraft leasing venture. For which the company aims to invest approximately Rs.11,500 crores in the IFSC aircraft leasing segment over the next 5 years.
The company plans to operate under the name ‘Interglobe Aviation Financial Services IFSC Pvt Ltd,’ focusing on operating leasing, financial leasing, and other related services for aircraft. The company has planned its operations to include the leasing of aircraft ground support equipment and aviation training simulation devices.
Furthermore, the reports also mentioned that the Civil Aviation Ministry has allowed IndiGo to wet lease a Turkish Airlines Boeing 777 aircraft for an additional six months till June 2024. Earlier, the Directorate General of Civil Aviation allowed wet lease of planes for up to six months. Such leases were permitted in emergencies that include grounding of planes, and unscheduled maintenance and now this has now been further extended by six months.
Under the lease arrangement, Turkish Airlines pilots operate the aircraft and its engineers maintain it. Cabin crew from both the airlines are working on board. Before inducting the Boeing 777s, IndiGo flew its Airbus A321 aircraft to Istanbul.
Coming onto the company’s financial statement, the revenue decreased by 10 percent from Rs. 16,683 crores during the June quarter to Rs. 14,944 crores during the September quarter. In addition, the net profit declined by 93 percent from Rs. 3,087 crores to Rs. 188 crores during the same timeframe.
The company is focused on expanding its network presence by increasing connectivity in the non-metro cities of India and expanding its international operations.
Headquartered in New Delhi, Interglobe Aviation Ltd was incorporated in 2004. The company is India’s largest passenger airline operating as a low-cost carrier with a market share of 55 percent which flies to about 75 destinations in India and some 25 international destinations.
Written By Vaibhav Patil
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