HAL Reports 52% Profit Surge in Q4, Shares Surge 8%

Hindustan Aeronautics Ltd (HAL) has announced a remarkable 52% increase in net profit for the fourth quarter of fiscal year 2023-24, reaching Rs 4,308 crore compared to the previous year’s Rs 2,831.2 crore. This positive financial report has propelled HAL shares to an 8% surge, marking a new all-time high.

HAL’s clientele comprises the Indian Army, Navy, and Air Force, as well as aerospace giants Airbus and Boeing. Recently, the Defence Ministry awarded HAL a significant tender valuing over Rs 65,000 crore for the procurement of 97 made-in-India LCA Mark 1A fighter jets, potentially the largest order of indigenous military hardware.

The revenue from operations in HAL’s Q4 FY24 increased by 18% to Rs 14,768.7 crore compared to the previous year’s Rs 12,494.7 crore. HAL’s EBITDA in the March quarter surged by 82% to Rs 5,901 crore, resulting in a margin increase from 26% to 40% year-on-year.

HAL’s main businesses encompass the manufacturing of defense technology and aircraft maintenance, with its order inflow highlighting the supply of 25 Dornier aircraft to the Indian Navy and engine orders for MiG-29 aircraft, as reported by Elara Securities.

Shares of HAL achieved a new 52-week high, opening at Rs 4219.90 and eventually locking at over a 10% upper circuit to Rs 4,654.55 before settling at Rs 4,603.40 on the BSE. Over the past year, HAL has outperformed Nifty 50 and Sensex, offering substantial returns to investors.

Prabhudas Lilladher, a domestic brokerage firm, commended HAL’s robust performance in Q4, particularly citing a significant margin beat. The firm has a ‘hold’ recommendation on the PSU stock. HAL’s consolidated revenue for FY24 increased by 12%, accompanied by a gross margin enhancement to 64% and a 64% rise in net profit throughout the fiscal year.