Stocks of India’s largest airline rose by 2 percent after the company imposed fuel surcharges in the range of Rs. 300- 1,000 on airfares.
At 11.31, 6th October shares of Interglobe Aviation Ltd were trading at Rs. 2524.20 per share, up by 2 percent from previous closing price of Rs. 2474.40.
Such bullish stock price movements are observed after the company imposed fuel surcharges in the range of Rs. 300- 1,000 on airfares due to the steep rise in jet fuel prices. A distance of up to 500 kilometres (km) will incur a fuel charge of ₹300; ₹400 for 501-1,000 km, ₹550 for 1,001-1,500 km; ₹650 for 1,501-2,500 km; ₹800 for 2,501-3,500 km; and of ₹1,000 for 3,501 km and above.
Looking at the financial statements, the company’s revenue increased by 29.78 percent to Rs. 16,683.05 crores in Q1FY24 from Rs. 12,855.29 crores in Q1FY23, in the same time period net profit increased to Rs. 3,090.6 crores in Q1FY24 from a loss of Rs. 1,064.26 crores in Q1FY23.
Talking about the financial ratios, the company reported return on capital employed (ROCE) of 7 percent and current ratio of 1.09.
InterGlobe Aviation Limited, doing business as IndiGo, is an Indian low-cost airline headquartered in Gurgaon, Haryana, India. It is the largest airline in India by passengers carried and fleet size, with a 63.4% domestic market share as of July 2023.
Written by: Vinit Israni
