SEBI probes plunge in IndiGo stock ahead of Ghosh's resignation

IndiGo share price Investors unfazed by Aditya Ghosh exit look what Ramdeo Agrawal has to say

Shares of InterGlobe Aviation today fell more than 3 per cent in morning trade on bourses ahead of its March quarter earnings which is scheduled to be announced later in the day.

The carrier, which last week announced the sudden departure of its President and Whole-Time Director Aditya Ghosh, had logged a profit after tax (PAT) of Rs 440.31 crore in the year-ago period.

Net profit of plunged 73 per cent to Rs 118 crore as compared to the same quarter previous year, according to its filing with the stock exchanges. It was Rs 5,141.99 crore in the year-ago period, according to a regulatory filing.

Rahul Bhatia, co-founder and interim CEO of the airline, during a conference call with the analysts said, "We have reported our highest-ever annual profits for fiscal 2018".

"We continue to seek worldwide route rights, regulatory approvals for long-haul flights " Answering questions on the sale of Air India, Rahul Bhatia, co-founder and interim CEO of the airline, said, "We were very interested in primarily acquiring Air India's global operations". For fiscal 18, the company's profit and revenue were Rs 2,242 crore and Rs 23,020 crore, registering a growth of 35.1 percent and 23.9 percent, respectively. Further, the airline had to ground some of its aircraft due to engine issues, thereby leading to a significant number of flight cancellations. It operates around 1,000 flights daily.

The full year results include certain credits received from manufacturers to offset some of the impact of aircraft grounding and delivery delays, the airline said. It had a fleet of 159 planes at the end of March. However, fuel expenses shot up to Rs 2,338 crore in the latest quarter under review from Rs 1,751 crore in the yearago period.

The company's Board of Directors recommended a dividend of Rs 6 per share.

"The key is to have the right cost structure in each market. We will continue to manage our costs tightly and additional operations won't affect that", he noted.

Share price of Indigo tumbled by Rs 44 or 3.19% on BSE, after finishing at Rs 1,355 per piece. The market regulator is also checking if the company disclosed the resignation news in time, and if there are any violations of insider trading rules.

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