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Informist, Tuesday, Aug. 12, 2025

--HAL Apr-Jun revenue INR 48.19 bln vs INR 43.48 bln year ago

--HAL Apr-Jun net profit INR 13.77 bln vs INR 14.36 bln year ago

--Analysts saw HAL Apr-Jun net profit at INR 12.62 bln

--HAL Apr-Jun net profit INR 13.77 bln

By Sunil Raghu

AHMEDABAD - Hindustan Aeronautics Ltd. reported a year-on-year fall in net profit for the second successive quarter in the last nine consecutive quarters. Revenue for the June quarter rebounded after falling in the March quarter. The net profit had fallen in March quarter after nine straight quarters. While the Tejas light combat aircraft maker was able to beat the Street's projections on net profit by a decent margin, it failed to beat the market estimate on the revenue front.

The company, which was awarded 'Maharatna' status last year, reported a 4.07% year-on-year fall in net profit for the June quarter to INR 13.77 billion, but beat the Street's expectations of INR 12.6 billion. The revenue rose by 10.85% on year to INR 48.19 billion, but was lower than the Street's estimate of INR 48.6 billion.

The cost of materials consumed and taxes paid for the June quarter were fairly higher than two years ago. Although Hindustan Aeronautics did not give reasons for the decline in revenue, analysts tracking the sector, when giving their projections for the company, had said delays in execution of orders, particularly Tejas and advanced light helicopter, could impact the company's financials in the June quarter.

The company's total order book as on Jun. 30 was INR 1.8 trillion. On Jun. 20, Hindustan Aeronautics said it had emerged as a successful bidder for manufacturing and designing the Indian Space Research Organisation's small satellite launch vehicle, but did not disclose the order value or size of the project.

The Bengaluru-based public sector aviation and avionics major, which is engaged in design, development, manufacture, repair and overhaul of a wide range of aircraft, helicopters, and aero engines along with making industrial marine gas turbines, had guided for an order book of INR 470 billion for FY25.

Rise in expenditure limited the company's net profit growth in June quarter. Total expenses increased by over 6.2% on year to around INR 37.2 billion, mainly on account of cost of raw material consumed, employee costs, and depreciation costs. Raw material costs rose by over 118% to INR 31.62 billion, from INR 14.48 billion a year ago. Steel prices were on an upswing in the June quarter. Employee benefit expenses increased 10.87% on year to INR 13.8 billion and depreciation and amortisation expense rose 24.12% to INR 1.85 billion from INR 1.49 billion a year ago.

Market participants are keen to hear the management's comments on the status of Tejas Mk1A deliveries to the Indian Air Force, Su-30 avionics upgrade project, and order prospects. The execution of a huge order backlog, incremental inflows, and comfortable margin levels too remain key focus areas for analysts.

On Jun. 27, Hindustan Aeronautics had announced that it will pay a final dividend of INR 15 per share for 2024-25 (Apr-Mar) after the approval of shareholders at the annual general meeting on Aug. 21. On Tuesday, shares of the company closed 0.8% lower at INR 4,409.40 on the National Stock Exchange.  End

Edited by Ashish Shirke

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