The company’s cash reserves, at the end of the fourth quarter of 2018-19 stood at a mere Rs 140.49 crore, a dip of 98% from Rs 6,524 crore a year ago

The problem in defence PSU Hindustan Aeronautics Limited (HAL) seem to be sky-rocketing, despite record growth in its bottom line – the cash reserves have depleted to an almost negligible level, while the dues from armed forces have skyrocketed.

The company’s cash reserves, at the end of the fourth quarter of 2018-19 stood at a mere Rs 140.49 crore, a dip of 98% from Rs 6,524 crore a year ago. On the other hand, the trade receivables, on the back of non-payment of the dues by the armed forces, have jumped 80% to Rs 13,938 crore at the end of March 2019, from Rs 7,742 crore a year ago.

Last financial year the receivable had taken over the company’s cash reserves in terms of size and the difference skyrocketed this year. In 2015-16, the company’s cash reserves were 2.75 times the company’s trade receivables. However, as of date, the company’s trade receivables are 100 times of its cash reserves.

The company insiders suggest that after the controversy broke over the HAL’s issues, the armed forces paid a portion of their dues, albeit marginal. “They have paid a portion but that is very marginal,” a source in the know told DH.

It is pertinent to note that despite the stress on its numbers, the company has already paid an interim dividend of Rs 662 crore for the year 2018-19.

The Order Book Position of the Company as on March 31, 2019, was at Rs 58,000 crore. The Navratna PSU expects fresh orders for Light Combat Aircraft and Light Combat Helicopters in the current financial year.

During the year, the company clocked an all-time high turnover of Rs 19,894 crore, registering a growth of 6.8% for the financial year 2018-19. The turnover in the previous fiscal stood at Rs 18,624 crore.

Meanwhile, the company’s bottom line for the FY 2018-19 stood at Rs 2,265 crore, an increase of 13.8% over Rs 1,990 crore recorded in the previous year.