Business Business. India’s Hindustan Aeronautics (HAL) reported a 77 percent rise in its first-quarter profit on receipts from aircraft manufacturing contracts. The state-owned fighter jet maker and maintenance firm said its consolidated net profit rose to Rs 1,437 crore ($171 million) in the quarter ended June 30. HAL is one of several capital goods and manufacturing firms in India that have benefited from the government’s
increased capital expenditure as well as efforts to localise defence manufacturing. The company makes military aircraft, helicopters and engines, and also provides maintenance and repair services.
Maintenance is HAL’s biggest business, accounting for 72 percent of revenue in the year to March 2024. Analysts had previously noted that stable aircraft and engine maintenance demand and strong receipts from manufacturing contracts would help HAL’s earnings in a seasonally weak quarter. However, according to Harshit Kapadia of Elara Capital, HAL’s revenue growth remained “at reasonable levels”, but gross margins – which fell to 3.02 per cent from 4.8 per cent a year ago – “degraded more than expected”. HAL’s stock, which was down 0.8 per cent ahead of the results, rose to 2.3 per cent and then pared its gains. The shares were last traded 0.8 per cent lower. Defence sector competitor Bharat Electronics reported a rise in quarterly profit, while Bharat Dynamics posted a decline.
