By R Anil Kumar
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Consolidated net profit rose 52% year-on-year to 43.09 billion rupees ($516.2 million) for the three months ended March 31
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HAL’s shares closed 10.03% higher at Rs. 4603.40 on the BSE on May 16, Thursday
Bengaluru, May 16. The state-owned aerospace and defence company, Hindustan Aeronautics Ltd (HAL) reported a rise in fourth-quarter profit on Thursday, May 16, helped by demand for its aircraft from the country’s defence ministry.
Consolidated net profit rose 52% year-on-year to 43.09 billion rupees ($516.2 million) for the three months ended March 31.
Capital goods and manufacturing companies have benefited throughout fiscal 2024 from the Indian government’s push for higher capital expenditure. This extended into the fourth quarter.
The state-owned aerospace and defence company bagged orders worth 176 billion rupees during the quarter, up 135% from a year earlier, per Elara Capital.
The company’s order inflow includes the supply of 25 Dornier aircraft to the Indian Navy and orders for engines for MiG-29 aircraft, the brokerage said.
HAL, whose customers include the Indian Army, Navy and Air Force, along with aerospace corporations Airbus AIR and Boeing BA, said revenue rose over 18% to 147.69 billion rupees ($1, 76,89, 74, 697.80).
Its two main businesses are manufacturing defence technology and aircraft maintenance, but it does not give a segment-wise break-up.
Its rivals Bharat Electronics BEL and Bharat Dynamics BDL have yet to report March-quarter results.
HAL’s shares jumped as much as 5.4% after the results.
HAL recorded the highest ever revenue from operations of over Rs. 29,810 crores (provisional and unaudited) for the financial year ended on March 31, 2024 registering a double-digit growth of around 11% as against 9% in the previous financial year. The corresponding figure for the previous year was at Rs. 26,928 crores.
Consolidated net profit came in at 12.61 billion rupees ($151.92 million) for the three months ended Dec. 31, the state-owned aerospace and defence company said in a filing.
“Despite the major supply chain challenges arising due to geopolitical issues, the Company has met the expected revenue growth with improved performance for the entire year.
As on March 31, 2024, Company’s order book stands in excess of Rs 94,000 crores with additional major orders expected during FY 2024-25”, said Mr C.B. Ananthakrishnan, CMD (Addl. Charge), HAL.
HAL received fresh manufacturing contracts of over Rs 19,000 crores and ROH contracts of over Rs 16,000 crores during FY 2023-24.
An export contract with Guyana Defence Forces for supply of 2 Nos. Hindustan- 228 aircraft was signed in the current FY 2023-24 and both the aircraft have been supplied in record time within a month of signing of contract due to proactive approach of the Company.
The Company has maintained the growth momentum and has achieved an all-round improved performance. A very significant milestone was achieved with first production series fighter of LCA Mk1A completing its maiden flight on 28th March 2024.
FY2023-24 was very eventful for HAL and was dotted with high profile visits and achievements that make the year special on various fronts such as customer satisfaction, branding & recognition and building stakeholder trust and confidence.
HAL continuously looks for opportunities to collaborate and develop newer technologies by forging alliances with global & Indian technology partners.
During the year, HAL and General Electric, USA signed an MoU for ToT and Manufacturing of GE-414 aero-engine in India for LCA MK2 Aircraft. The Company would receive 80% technology transfer for this program which would transform the Indian Aero Engine Manufacturing Ecosystem to be self-reliant.
A Joint Venture “SAFHAL Helicopter Engines Pvt. Ltd.” was formed with Safran Helicopter Engines, France for indigenous design and development of Engines for IMRH and DBMRH.
During the FY, HAL and Airbus signed a contract for establishing MRO facilities for A-320 family of aircraft in New Delhi. This collaboration will strengthen Make-in-India mission and also enhance export potential.
HAL with a robust order book and accelerated delivery plan is expected to sustain and improve the growth trajectory and support the Indian Defence services in their endeavour towards Defence preparedness of the country.
