Hindustan Aeronautics Q1 earnings: Net profit surges 31% to Rs 814.1 cr, revenue up by 8.1%

State-run aerospace and defence company Hindustan Aeronautics Ltd (HAL) reported a consolidated net profit of Rs 814 crore in the first quarter of FY24, which is 31 per cent higher than Rs 620 crore earned in the same quarter last year. However, the net profit dropped 71 per cent in Q1 FY24 from Rs 2,831 crore in the March quarter of FY23.

Revenue from operations, meanwhile, jumped 8 per cent to Rs 3,915.35 crore for the June quarter from.Rs 3,622 crore in Q1 FY23.

The company has reported an EBITDA (earnings before interest, tax, depreciation and amortisation) of Rs 880 crore during the April-June period, which is 6 per cent higher than Rs 830 crore in Q1 FY23. Margins during the June quarter improved to 22.5 percent as against 22.9 percent a year ago.

The stock of HAL was trading at Rs 3,770.85, down by 0.55 per cent, at 3.40 PM. HAL shares have grown more than 60 per cent in the past year, sharply outperforming an nearly 11 per cent rise in the benchmark Nifty index. On a year-to-date basis, the stock has risen about 48.43 per cent.

On Thursday, the Comptroller and Auditor General of India, in a report tabled in the parliament, said that HAL applied for European Aviation Safety Agency (EASA) certification of Helicopter 1 in 2009 to enhance its export potential to European countries, but failed to anticipate stringent requirements of EASA which took longer time for compliance and a consequential additional fee.

It further said that improper engine selection and faulty planning in the early development stage by HAL led to significant delays in the intermediate jet trainer (IJT) project that was sanctioned almost 25 years ago. 

The IJT project was sanctioned in July 1999 with a grant of Rs.180 crore.

“Incorrect assessment of the required thrust and lack of clarity on the availability of A Type Engine led to improper engine selection, which, in turn, had a cascading effect on the design and development of Project 2 (IJT),” the national auditor said in its latest report.

The IJT, first powered by a French engine and now a Russian one, was expected to get initial operational clearance by 2006, with deliveries to the Indian Air Force planned in 2007.

However, there is no indication from the IAF about a possible order. The project was planned to replace the IAF’s Kiran fleet to carry out stage-II training of fighter pilots.