HAL Q1 results: Net profit jumps 31% on higher revenue

HAL Q1 results: Hindustan Aeronautics Limited posted a 31 per cent rise in first-quarter profit on Friday as fullfillment of orders helped boost aerospace and defense equipment maker's revenue. The state-owned company reported a net profit of 8.14 billion rupees ($98.28 million) for the quarter through June 30, up from 6.20 billion rupees, a year earlier. Revenue from operations rose 8.1 per cent to 39.15 billion rupees in the quarter, outpacing a 7.8 per cent rise in total expenses, which were led by surging employee benefit costs.

Its other income, which includes interest and dividends, more than doubled to 4.1 billion rupees compared with a year-ago quarter. HAL, the supplier of aircraft to the Indian military, also supplies to Airbus and Boeing. The company in May said it is targeting revenue growth of 10 per cent in fiscal 2024 as it bets on finalising orders worth at least $480 billion in coming months.

"The company had a good start for FY24. The results are in line with the company's guidance as well as our estimates," said Harshit Kapadia, research analyst at rating agency Elara Securities. The Bengaluru-based company also benefited from the rising indigenisation of vessels as a part of the government's "make in India" push.

HAL's shares closed almost flat after the results, taking its year-to-date gains to about 49 per cent.

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