HAL shares rally 9% as Q4 profit soars 52%. Key details 

HAL Q4 earnings: Hindustan Aeronautics Ltd (HAL) on Thursday reported a 52.18 per cent rise in consolidated March quarter profit, sending its shares higher by 9 per cent. The state-run defence PSU reported a net profit of Rs 4,308.68 crore for the March quarter compared with Rs 2,831.19 crore in the same quarter last year.

Net sales for the quarter came in at Rs 14,768.75 crore compared with Rs 12,494.67 crore in the corresponding quarter last year.  Following the development, HAL shares jumped 9.04 per cent to hit a high of Rs 4,562.25 on BSE.

HAL said it was actively pursuing with the Ministry of Defence, government of India for the approval of amendment of LCA (IOC) contract including price variation (LCA Change Order 3).

"Approval for the Change Order 3 in respect of LCA (IOC) contract was accorded. The company has recognized differential revenue of Rs 548.94 crore during the quarter/year ended 31 March, 2024 pertaining to the supplies made in the earlier years, based on the amended contract," HAL said.

HAL said it had recognized revenue in the earlier years based on the estimated selling price of LCA aircrafts pending approval of the amendment to the contract price and out of prudence. HAL had subsequently recognised the same as doubtful debt pending approval.

"Consequent to the approval of the Change Order 3, the company has reversed the provision of Rs l,033.67 crore made in earlier years during the quarter/year ended 31 March, 2024," HAL said.