INSUBCONTINENT EXCLUSIVE:
InterGlobe Aviation had a debt of 26.41 billion rupees, as on September 30.Shares of InterGlobe Aviation Ltd, owner of largest domestic
carrier by market share - IndiGo, fell as much as 3.7 percent on Thursday, a day after the company posted first-ever quarterly loss since
its market debut in 2015.Higher crude oil prices and a depreciating rupee have dented airlines' profit in the world's fastest-growing
InterGlobe has been able to sustain itself so far, while rival Jet Airways Ltd is scrambling to keep itself afloat
Meanwhile, state-owned Air India is surviving on government bailout.InterGlobe's shares have dived over 30 percent so far this year amid
intense competition, which has limited its ability to raise fares, putting pressure on yields.More than 1.2 million InterGlobe shares traded
hands, as of 0437 GMT, compared with their 30-day average of 1.6 million shares.The stock witnessed selling pressure after the company on
Wednesday posted a loss of 6.52 billion rupees ($89.1 million) for the quarter ended Sept
30 - its first since listing on the stock exchange in November 2015.Rival airlines also took a hit on Thursday, with Jet Airways shares
slipping up to 2.4 percent, while SpiceJet Ltd fell as much as 3.14 percent.Uncertainty has led InterGlobe to hold its decision to own some
"At times when there is a little uncertainty we want to be prudent with cash," its interim Chief Executive Officer Rahul Bhatia said on a
post-earnings analyst call on Wednesday
The company will continue to lease them, he added.At least three brokerages expect the company to post a loss for the current fiscal year
Analysts at Citi forecast a net loss of about 10 billion rupees for the year, but still expect an improvement in the second half.Citi also
cut its target price to 720 rupees from 820 rupees earlier, but continued to rate the stock as "sell".Domestic brokerage Elara Capital
expects margins to recover from fiscal year 2020 due to an anticipated slowdown in capacity addition by competitors
The competitors have a higher cost base compared with IndiGo, Elara Capital said in a note.InterGlobe Aviation had a debt of 26.41 billion
Its foreign exchange losses widened over seven-fold, leading to a 58.2 percent jump in total expenses.(Except for the headline, this story
has not been edited by TheIndianSubcontinent staff and is published from a syndicated feed.)
