The aviation company’s share fell by 0.5 Rs 2,590 per share from its intraday low on Thursday after the Company received tax demand orders from the Commissioner of Income Tax.
Interglobe Aviation, IndiGo Airlines’ parent company, has received a tax demand totaling approximately Rs 1,666 crore, as confirmed by the Commissioner of Income Tax-Appeals (CIT), the airline announced on November 22 in a notice to stock exchanges.
The low-cost carrier intends to appeal the Commissioner of Income Tax Appeals’ order seeking Rs 740 crore in recovery for the fiscal year (AY)2016-17 and Rs 927 crore in recovery for the fiscal year (AY)2017-18.
The airline claimed that the commissioner denied it a personal hearing. The airline claimed in its statement that the case was not decided on the basis of merit.
In its filing, the airline states that “the CIT-Appeal has now passed the respective orders, wherein the revision to the taxable income on account of the tax treatment of certain incentives received by the Company from manufacturers with the acquisition of the aircraft and engine and disallowance of certain expenses has been confirmed without granting an opportunity of personal hearing and adjudicating the matter on merits.”
According to the company filing, net revenue climbed from Rs 12,497 crores in Q2FY23 to Rs 14,943 crores in Q2FY24, a 19.5 percent year-over-year increase. The company’s net loss decreased by 112 percent year over year, from Rs 1,583 crores in Q2FY23 to Rs 188.93 crores in Q2FY24.
Interglobe Aviation Limited, with a market capitalization of Rs 1,00,790 crores, is a large-cap company with a low debt-to-equity ratio of 0.36. The company’s share price has risen by 28 percent year to date and by 15 percent during the previous six months.
The promoters own 63.2 percent of the company, with foreign institutional investors owning 20.2 percent, the general public owning 3.1 percent, and domestic institutional investors owning 13.3 percent.
Interglobe Aviation Ltd (Indigo) is India’s largest low-cost carrier. IndiGo began operations in August 2006 with a single aircraft and has grown its fleet to 262 aircraft, serving 86 destinations, including 24 international destinations.
Written by Sriram KV
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