Aviation stocks nosedive as Interglobe posts poor results

Airlines operator stocks were being punished by investors in the first half of trade on Tuesday. Aviation bellwether stock, Interglobe Aviation reported an investor sentiment killer dip of 96.6 per cent in net profit for Q1FY18.

The low-cost carrier's net profit declined to Rs 27.8 crore in the June quarter from Rs 811.1 crore in the same period the previous year. The company's first-quarter profits were reduced by higher fuel prices and the adverse impact of foreign exchange rates.

Interglobe's net sales grew 12 per cent quarter over quarter, while net profit fell 76 per cent with operating profit margin falling by 0.17 per cent.

Following the development, airline stocks tanked on Tuesday. During the lunch hours, the stock of InterGlobe Aviation Ltd was trading at Rs. 920.20 per share, down by Rs. 84.05 or 8.37 per cent, Spicejet was at Rs. 99.00 per share, down by 5.67 per cent, while Jet Airways was at Rs. 308.45 , down 3.22 per cent on Tuesday.