ICRA reaffirms rating of InterGlobe Aviation Limited

ICRA Limited has reaffirmed InterGlobe Aviation Limited's short-term rating at [ICRA] A1. The Long-term rating of the Company has been downgraded by one level from [ICRA] A+ to [ICRA] A while the outlook remains negative.

ICRA has acknowledged the Company's strong market position, cost competitiveness and healthy liquidity profile amongst its peers but attributed the downgrade to prolonged disruption caused by the Covid-19 pandemic on the Company's financials. ICRA expects the Indian airline industry to remain adversely impacted in the near-term and recovery in passenger traffic and yields to be gradual. In line with the industry, profitability of the Company is also vulnerable to volatility In fuel prices and foreign exchange.

Despite the fact that the aviation industry is going through an unprecedented crisis, the Company's balance sheet remains strong. The Company ended Ql FY 2022 with a total cash balance of Rs. 17,068 crore, including a free cash balance of Rs. 5,621 crore. The Company continues to make all its payments including lease related payments and service its debt on time. Regardless of all the challenges, the Company's focus throughout the pandemic has been to manage its cash levels, improve its cost structure, run a high-quality airline with highly engaged employees and position itself for the future.

Shares of InterGlobe Aviation Limited was last trading in BSE at Rs. 1704 as compared to the previous close of Rs. 1691.6. The total number of shares traded during the day was 124808 in over 2594 trades.

The stock hit an intraday high of Rs. 1717 and intraday low of 1682.7. The net turnover during the day was Rs. 212917846.

Source : Equity Bulls

Keywords