Hindustan Aeronautics Ltd (HAL) reported a robust performance for Q1FY25 on August 14, with a notable 77% year-on-year increase in consolidated net profit, reaching Rs 1,437 crore compared to Rs 814 crore in the same period last year. The company’s revenue from operations for the April-June quarter also saw an 11% rise, climbing to Rs 4,348 crore from Rs 3,915 crore a year earlier.
Total income surged nearly 18% to Rs 5,083 crore for the quarter, up from Rs 4,325 crore the previous year. HAL experienced a slight uptick in expenses, which rose to Rs 3,506 crore from Rs 3,239 crore. The company’s earnings before interest, tax, depreciation, and amortization (EBITDA) improved by 13% year-on-year, amounting to Rs 994 crore.
The board of HAL, at a meeting held on June 26, had announced a final dividend of Rs 13 per equity share, or 260% of the face value of Rs 5, in addition to the interim dividend of Rs 22 per share. Despite these strong financial results, the stock was trading slightly lower by over 1% at Rs 4,649 per share as of 2:30 pm on August 14.
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HAL’s performance has been under the spotlight as part of Prime Minister Narendra Modi’s Atma Nirbhar Bharat initiative, which has significantly boosted its defense and manufacturing orders. Earlier this year, the company secured a major contract from the Defence Ministry to produce 97 Tejas light combat aircraft for the Indian Air Force, valued at approximately Rs 67,000 crore.
With a substantial order book of Rs 94,000 crore as of March 31, 2024, HAL’s future prospects look promising. The company received new manufacturing orders exceeding Rs 19,000 crore and repair and overhaul contracts over Rs 16,000 crore in FY 2023-24. The stock has seen remarkable growth, delivering a 140% return in the past year, quadrupling in two years, and increasing more than sevenfold over the last three years.
