Hindustan Aeronautics Limited (HAL) jumped 8 per cent to Rs 1,481.35 per share on the BSE intraday trade during Wednesday’s sessions on reports that the company has signed memorandum of understanding (MoU) with French aerospace engine firm Safran. 

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The MoU has been done with an aim to extend cooperation and explore opportunities for new helicopter engines in civil and military markets, the company said in its statement. 

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“The Company has entered into an MOU on non-exclusive basis with Safran Helicopter Engines SAS, France for finding the feasibility of potential cooperation w.r.t. business opportunities, which does not constitute any obligation on the part of either Party to enter into any Definitive Agreement or make any financial commitments,” HAL said in clarification on news report. 

Hence, the said transaction was not considered material for making disclosure to the stock exchanges, the company said Wednesday in a clarification on media report. 

The stock has outperformed the market by gaining 15 per cent in the last three months, as against a 2.3-per cent decline in the S&P BSE Sensex. It has rallied 37 per cent over the past one year versus 12 per cent rise in the benchmark index; and hit a new high of Rs 1,568 apiece on October 18, 2021. 

The stock on Wednesday closed over 6 per cent higher to Rs 1460 per share on the BSE, as compared to 1.86 per cent rise in the BSE Sensex. 

HAL had reported 23 per cent year-on-year (YoY) jump in profit after tax at Rs 1,985 crore on the back of strong operational performance in the first nine months ended December 2021 (9MFY22). 

While revenue from operations, during the same period gained by 9 per cent YoY at Rs 13,059 crore and EBITDA (earnings before interest, taxes, depreciation, and amortization) margin improved 232 bps at 26.04 per cent from 23.72 per cent in 9MFY21. 

The company is engaged in the design, development, manufacture, repair, overhaul, upgrades and servicing of a wide range of products including, aircraft, helicopters, aero-engines, avionics among others, it has also been set up to meet the requirement of Indian Defence Forces in Aerospace.