HAL Q3 net profit jumps 24% YoY to INR 1155 crore

Hindustan Aeronautics (HAL) reported a 23.8% rise in consolidated net profit to INR 1,155.19 crore in Q3 FY23 as compared to INR 933.40 crore posted in Q3 FY22. Shares of Hindustan Aeronautics Ltd were trading 2.22% lower at INR 2,379.70 apiece on BSE during late deals on Thursday, February 9.

Revenue from operations was at INR 5,665.54 crore in Q3 FY23, down 3.9% from INR 5,893.82 crore recorded in the same period a year ago. Consolidated profit before tax declined 2.7% to INR 1,212.94 crore in the quarter ended 31 December 2022 as against INR 1,247.19 crore reported in Q3 FY22.

EBITDA or Earnings Before Interest, Taxes, Depreciation and Amortization dropped 31% to INR 985.5 crore in Q3FY23 as against INR 1,428.5 cr YoY, with a margin of 17.4%. Total expenses of the aerospace company rose 2% to INR 4,951 crore for the quarter under review. This was INR 4,840 crore in the corresponding quarter of last year.

HAL is engaged in carrying out the design, development, manufacture, repair and overhaul of aircraft, helicopters, engines and related systems like avionics, instruments and accessories primarily serving the Indian defence programs. As of 31 December 2022, the Government of India held a 75.15% stake in the company.

Shares of Hindustan Aeronautics were up 0.49% to INR 2,426.55 on the BSE.

84K Crore Orders Pending, 55K crore Coming Up

In the wake of Prime Minister Narendra Modi’s recent assertion that the state-owned Hindustan Aeronautics Limited has a huge number of orders for aircraft and choppers, the chairman of the PSU said that the state-owned entity has pending orders worth INR 84,000, while orders worth INR 55,000 were in the pipeline.

“Our order book position is comfortable, it stands at around INR 84,000 crore. We have been generating revenues of INR 25,000 crores which has shown a growth of 8%. We have sufficient contracts to be executed. Almost INR 84,000 crore of orders are pending. Another INR 55000 crore orders are in the pipeline, likely to materialize in the next six months to one year. So, all in all, we will have a healthy order book. Our capacity is 30 helicopters per annum. We will try to ramp it up to 60 helicopters. If demand is at its peak, then we can take it to 90 helicopters.”

He further said sanction for the TEJAS (Light Combat Aircraft) MK-II, has come and that the Defence Research and Development Organisation (DRDO) and HAL will together be able to roll out the first TEJAS MK-II sometime in the year 2024-25.

While talking about HAL’s Advanced Medium Combat Aircraft (AMCA) project, the HAL chief stated, “We are also a design partner in building prototypes in this project. In another five to six years, the product should be available. The execution timeframe is starting from February 2024. We are confident that we will be able to deliver the first aircraft in February 2024.”

Prime Minister Modi had while inaugurating a HAL helicopter factory in Karnataka’s Tumkur recently lashed out at the Opposition for spreading “misinformation” about Hindustan Aeronautics Limited (HAL) in the past. PM Modi also recalled earlier Parliamentary sessions that were disrupted by the Opposition over the demand for a Joint Parliamentary Committee probe into the Rafale deal.

“Tumkur has got a big helicopter factory today. Karnataka is a land of young talent and innovation. The world is seeing the manufacturing power of Karnataka from drone manufacturing to Tejas fighter planes. The double-engine government has made Karnataka the first choice of investors. The inauguration of the helicopter factory is an example of how the double-engine government works,” PM Modi said.

The prime minister also said that the HAL facility will generate business worth over INR 4 lakh crore in the coming years and will supply a variety of helicopters to the armed forces.