The company has achieved excellent performance in terms of turnover. Since fiscal 2015, the company has only recorded an upward trend in revenue. For FY22, the company recorded the highest revenue of over Rs 24,000 crore.
Shares of Hindustan Aeronautics Limited jumped more than 5% on Thursday before the company released its fiscal year earnings report for the April-June quarter on Friday.
Net income increased by 56.5% and stood at Rs 6,400 crore. As a result, earnings per share rose to an all-time high of Rs 151.92 for FY22.
Why did HAL shares explode?
The company’s strong performance and business outlook fueled investor interest in the stock. HAL has benefited from the Indian government’s efforts to increase defense indigenization.
The Ministry of Defense informed Parliament on Friday that HAL had responded to the RFP issued by the Royal Malaysian Air Force for 18 Fighter Lead in Trainer – Light Combat Aircraft (FLIT – LCA) offering the two-seat Light Combat Aircraft Tejas variant.
“Other countries that have expressed interest in LCA aircraft include: Argentina, Australia, Egypt, United States, Indonesia and the Philippines,” said Ajay Bhatt, Minister of State for defense.
The company’s latest financial year earnings report said the current order book stood at Rs 82,000 crore. The defense company also expects to post revenue growth of 6-7% for FY23.
“We expect the same amount of increase in our revenue, 6-7% and beyond that, we intend to increase our revenue due to new projects coming into play. So, from FY24-25, it will definitely increase,” R Madhavan, President and CEO of HAL, told CNBC-TV18.
Apart from the Ministry of Defense orders, HAL is also in talks with Egyptian, Malaysian and Nigerian bagging contracts for Tejas, as reported by the PTI news agency. Last month, HAL also offered to set up production facilities for Tejas planes and helicopters in Egypt.
(Edited by : Nishta Pandey)
First post: STI