Interglobe Aviation Limited has posted its results for the June-ended quarter. They reported a net loss of Rs.3174.2 crore for the June-ended quarter which was more than the estimated amount. Furthermore, experts anticipated that a company would report a net loss of Rs.2301.7 crore but the loss widens to Rs.3174.2 crore. In the year-ago for the same quarter, the company has stated a net loss of Rs.2844.3 crore. However, the spread of coronavirus has severely impacted the Indigo Q1 results.
The civil operations of the company were adversely impacted due to the Covid-19 life-threatening infection. Consequently, the demand for traveling deteriorates due to lockdowns and panic of transmission among travelers.
Furthermore, the company also testified that the cost of the fuel jumped 854% and stood at Rs. 1,216 crore in the quarter.
Consequently, the second wave of Covid-19 hits the company adversely thereby impacting the income and profitability for the quarter. Thus, Indigo Q1 results posted a net loss which was more than the expectations.
Moreover, Indigo’s Q1 balance sheet reflects financial stability with adequate liquidity.
Technical Levels
Indigo settled around 1665.
Looks weak on the daily chart. Traders holding long can try to exit around 1690—1720.
Support at 1640 and resistance at 1720—1750.
Expect more downside panic below 1640 levels.