The shares of InterGlobe Aviation, the parent company of IndiGo, plunged over 6% on Tuesday after the company reported 7.3% decline in net profit for the quarter ending June 30.

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At 1030 hours the shares of the company were trading at Rs 913.05 per piece, down 6.25% on BSE. It touched the high at Rs 947.25 and low at Rs 906. 

The net profit of the company stood at Rs 591.78 crore in Q1FY17 as against Rs 638.90 crore in the same period last year.

On Monday the company said that the drop in net profit was majorly due to cheaper fares offered by the other airlines. 

Commenting on the company's performance, Aditya Ghosh, President and Whole Time Director, IndiGo, said, "We have posted yet another profitable quarter. However, profitability was lower than last year primarily because of competitive fare pressures. We have reduced our debt by Rs 4,589 million (458.9 crore) during the quarter".

However, the company's total revenue from operations increased by 8.7% as compared to FY16 at Rs 4,578.8 crore for the quarter ended on June 2016.

Passenger revenue for the quarter under review also increased by 6.9% to Rs 3,971.73 crore and ancillary revenues were Rs 580.5 crore, an increase of 20.8% compared to same period last year.

IndiGo is the Airbus' biggest customer as the company has ordered 430 A320neo planes. 

The budget carrier is planning to become all-neo fleet by 2022, has currently three A320neo planes.