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Informist, Thursday, Nov. 14, 2024

 

By Narayana Krishna

 

HYDERABAD – Hindustan Aeronautics Ltd. on Thursday reported a net profit of INR 14.90 billion in Jul-Sept, up 20.65% on year while its revenue for the quarter rose by 6.05% on year to INR 59.77 billion.

 

While the net profit of the public sector defence manufacturer is above the Street's estimates of INR 13.9 billion, the profit growth on a year-on-year basis is lower compared with the last two quarters. On the revenue front, the company missed analysts’ estimates for its Jul-Sept revenue of INR 61.2 billion, while revenue growth is lower than what it saw in the last six quarters.

 

In Jul-Sept last year, the company reported a net profit of INR 12.4 billion on a revenue of INR 56.4 billion.

Sequentially, the company's net profit rose by 3.82% while revenue rose by 37.47%.

 

The company has reported an exceptional gain of INR 58.9 million from a land sale to Bangalore Metro Rail Corp for the Bengaluru city metro rail project. 

 

During the September quarter, Hindustan Aeronautics secured a major order worth INR 260 billion to supply 240 aero engines for the Indian Air Force's Su-30 MKI aircraft, pushing its total order book to INR 320 billion. Despite this substantial order, the company's revenue for the quarter did not fully reflect this contract, as the execution is scheduled over the next eight years.

 

Analysts highlighted that while this order strengthens long-term revenue potential, it will contribute to revenue incrementally over an extended period. Besides order book execution, it was expected that the traction in repair and overhaul operations revenue may contribute to the revenue growth.

 

The company's earnings before interest, tax, depreciation and amortisation or EBITDA margin for the September quarter saw a marginal improvement of 15 basis points on year to 27.28% as its margin base was higher during last year. Analysts had expected HAL's Jul-Sept EBITDA margin at around 26.5%.

 

The company’s total expenditure for the quarter rose by 1.51% on year to INR 45.24 billion, raw material costs increased by 56.20% on year to INR 30.76 billion. Other expenses rose by 15% on year to INR 4.32 billion. The company has reduced its provision by 37.55% on year to INR 2.50 billion.

 

For Apr-Sept, the company reported a net profit of INR 29.26 billion, up 42.76% on year, while its revenue for the period rose by 8% on year to INR 103.24 billion.

 

The company's board today approved appointment of Barenya Senapati, who was director (finance), as chief financial officer of the company.

 

At 1405 IST, shares of Hindustan Aeronautics traded at INR 4125.05 on the National Stock Exchange, up 1.4% from its previous close.  End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Vidhi Verma

 

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