On Thursday, India’s leading aerospace and defence company, Hindustan Aeronautics Ltd. (HAL), released its January-March quarter results for fiscal 2023-24 (Q4FY24). 
Q4 highlights
The Indian public sector’s Q4 results report a boom of 52% year-on-year growth in net profit at Rs 4,308 crore, compared to Rs 2,831.2 crore in the previous period.
Its revenue from operations was up by 18.2% year-on-year to Rs 14,768.70 crore, compared to Rs 12,494 crore in the corresponding period last year.
The public sector undertaking delivered an Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) margin of 40%, compared to 26% during the same quarter last year.
As EBITDA in the March quarter almost doubled from Rs 3,245.8 crore to Rs 5,901.1 crore, a rise of 81.8%
Factors for growth
The state-run defence equipment manufacturer designs, develops, manufactures, repairs, and overhauls aircraft, helicopters, and their engines.
Its key clients include the Indian Army, Navy, and Air Force, as well as the aerospace corporations Airbus and Boeing.
Last month, the Defence Ministry issued a tender to HAL for the purchase of 97 made-in-India LCA Mark 1A fighter jets worth over ₹65,000 crore. It is reported to likely be the largest order for indigenous military hardware placed by the central government ever.
The company’s order book also includes the supply of 25 Dornier aircraft to the Indian Navy and engine orders for MiG-29 aircraft. Thus, HAL plays a pivotal role in the Indian defence industry.
Additionally, in FY24, the company signed an export contract with Guyana Defence Forces to deliver two Hindustan228 aircraft.
The company further benefits from the Indian government’s focus on the defence and aerospace segment.
During the financial year, it received major orders worth more than Rs 19,000 crore, up 135%, along with repair and overhaul contracts of over Rs 16,000 crore.
HAL’s statement on Q4
CMD (Addl Charge), HAL, C B Ananthakrishnan, said, “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 of March 31, 2024, the company’s order book stands in excess of Rs 94,000 crore, with additional major orders expected during FY25.”
Impact on share price
On Thursday, the share price witnessed its all-time high as it tripled in the last 12 months. It has extended its gains for 2024 to nearly 60%. On BSE, HAL shares jumped 9.04 per cent to hit a high of Rs 4,562.25.
On Friday, May 17, the share price opened at Rs 4,639 apiece. However, the price remained at the lower end throughout the day and closed at Rs 4,529 −74.70 (1.62%) before the market closed for the week.
