Hindustan Aeronautics board approves stock split; check details

HAL board approves stock split: The board of Hindustan Aeronautics (HAL) on Tuesday, June 27, approved the sub-division of equity shares. In its regulatory filing, the company said its board has agreed to the sub-division or stock split of the existing 1 equity share of the face value of Rs 10 each fully paid up into 2 Equity Shares of Rs 5 each fully paid up. The Record Date for the purpose of the sub-division of equity shares shall be Friday, September 29, 2023, if the sub-division is approved by the shareholders at the AGM, the filing added.

The company has also approved the final dividend of Rs 15 per equity share. At the time of writing this news, the stock was trading 1 per cent lower at Rs 3,663.65 on the BSE. Shares of the defence company hit an all-time high of Rs 3,950 on the BSE on June 19.

For the quarter ended March 31, 2023, the Navratna defence public sector undertaking reported a Q4 net profit of Rs 2,831.18 crore, down 8.7 per cent compared to Rs 3,102 crore reported in the same quarter last year. On a sequential basis, profit more than doubled from Rs 1,155 crore reported in the preceding December quarter. Revenue, too, rose by a massive 120 per cent quarter-on-quarter (QoQ).

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The company's margin, a key measure of profitability for a business, grew to 25.98 per cent as against 21.60 per cent registered in the corresponding quarter of the previous fiscal year. HAL’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) stood at Rs 3245.8 crore as against Rs 2496.9 crore in the March 2022 quarter. The company’s expenses for the March quarter increased 9 per cent to Rs 10,360 crore from Rs 9,486 crore a year earlier.

In its Q4 review note, ICICI Securities, said, "We expect HAL to deliver revenue and EBITDA CAGR of 10.8% and 10%, respectively, over FY23-25E. PAT is likely to grow at 6.5% CAGR (FY23-25E). Increase in profitability with strong asset turnover is expected to result in healthy return ratios over FY23-25E."