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Why IndiGo shares took off despite a loss in Q4FY20

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Shares of InterGlobe Aviation Ltd, which runs the IndiGo airline, rose up to 10% on the NSE in early deals on Wednesday. This, after the firm reported a net loss of Rs873 crore for the March quarter.

What gives? Note that the Street forecast the company to report a higher loss. Also, IndiGo’s loss was largely due to forex fluctuation.

The firm's results could well have excited investors at a time when expectations are running quite low. Also, outlook for the aviation sector remains uncertain owing to the covid-19 pandemic.

But cash is king and IndiGo has plenty of it, which is reassuring in such testing times. “With net cash of Rs6,500 crore at FY20-end, IndiGo will surely survive this crisis and is well positioned to thrive when normalcy

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