HAL’s Net Profit Jumps 77% To Rs 1,437 Cr In Q1

Hindustan Aeronautics (HAL) reported a significant increase in its Q1FY25 consolidated net profit, which surged by 77 per cent year-on-year to Rs 1,437 crore, up from Rs 814 crore in the same period last year. The company's revenue from operations for the April-June quarter also grew by 11 per cent, reaching Rs 4,348 crore compared to Rs 3,915 crore a year earlier.

Total income for the quarter saw an 18 per cent rise, amounting to Rs 5,083 crore, up from Rs 4,325 crore in the corresponding period last year. Meanwhile, the company's expenses experienced a slight increase, rising to Rs 3,506 crore from Rs 3,239 crore in the same quarter last year.

EBITDA for the quarter rose 13 per cent year-on-year to Rs 994 crore. Previously, the company's board of directors, during a meeting on 26 June, had proposed a final dividend of Rs 13 per equity share for the financial year 2023-24, representing 260 per cent of the face value of Rs 5 per equity share. This final dividend is in addition to an earlier interim dividend of Rs 22 per equity share.

At the end of market on Wednesday, the company share was trading 0.90 per cent lower than previous day at Rs 4,658.90 apiece.

The company has gained attention due to Prime Minister Narendra Modi's emphasis on self-reliance (Atmanirbhar Bharat), which has led to significant defence and manufacturing orders for HAL. In May, as part of the general election campaign, Modi highlighted the strong performance of PSU stocks, particularly HAL, which posted a record profit of Rs 4,000 crore in the fourth quarter.

Earlier in April, HAL secured an order from the Defence Ministry to produce 97 light combat aircraft (LCA Mk-1A) Tejas for the Indian Air Force, valued at around Rs 67,000 crore. As of 31 March 2024, the company's order book is strong, with orders worth Rs 94,000 crore. Additionally, during the fiscal year 2023-24, HAL received new manufacturing contracts totaling over Rs 19,000 crore and Repair and Overhaul (ROH) contracts exceeding Rs 16,000 crore.

Over the past year, HAL's stock has provided substantial returns to shareholders, rising 140 per cent, according to BSE data. The stock has quadrupled in value over the last two years and increased more than sevenfold in the last three years.