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Business News/ Markets / Stock Markets/  HAL hits 8% upper circuit after net profit rises 52% to 4,308 crore in March quarter, revenue up 18% YoY
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HAL hits 8% upper circuit after net profit rises 52% to ₹4,308 crore in March quarter, revenue up 18% YoY

HAL Q4 Results: The defence PSU major's stock rose more than eight per cent to hit a lifetime record-high mark on Thursday while announcing its March quarter results.

HAL Q4 Results: The PSU's net profit rose 52 per cent to ₹4,308 crore in the March quarter. Photo: ReutersPremium
HAL Q4 Results: The PSU's net profit rose 52 per cent to 4,308 crore in the March quarter. Photo: Reuters

HAL Q4 Results: Hindustan Aeronautics Ltd (HAL) announced its January-March quarter results for fiscal 2023-24 (Q4FY24) on Thursday, May 16, reporting a rise of 52 per cent in net profit at 4, 308 crore, compared to 2,831.2 crore. Shares of HAL rose more than eight per cent to hit a lifetime record-high mark during intra-day on Thursday, May 16. HAL has given multibagger returns to investors over the last one-to-three year time periods.

HAL's customers include the Indian Army, Navy and Air Force, along with aerospace corporations Airbus and Boeing. Last month, the Defence Ministry issued a tender to HAL for buying made-in-India 97 LCA Mark 1A fighter jets. The tender was worth over 65,000 crore and was likely the largest order for indigenous military hardware to be placed by the central government ever.

Also Read: Multibagger defence PSU hits upper circuit as Defence Ministry issues tender worth 65,000 crore for fighter jets

HAL Q4 Results

The defence public sector undertaking (PSU's) revenue from operations in the fourth quarter of FY24 rose 18 per cent to 14,768.7 crore, compared to 12,494.7 crore in the year-ago period. 

On the operating front, HAL's earnings before interest, taxes, depreciation, and amortization (EBITDA) in the March quarter rose 82 per cent to 5,901 crore, compared to 3,246 crore in the same period last year. Margins rose 40 per cent compared to 26 per cent in the year-ago period.

The defence PSU's two main businesses are manufacturing defence technology and aircraft maintenance, but it does not give a segment-wise break-up. The order inflow includes the supply of 25 Dornier aircraft to the Indian Navy and orders for engines for MiG-29 aircraft, said domestic brokerage firm Elara Securities. 

HAL Share Price Trend

Shares of HAL opened at 4219.90 and were locked at over 10 per cent upper circuit to hit a fresh 52-week high-mark of 4,654.55, before settling 10.03 cent higher at 4,603.40 apiece on the BSE. According to Trendlyne data, HAL has given better returns compared to Nifty 50 and Sensex in the last one year. In the past one month, HAL gave 26.85 per cent returns, against 0.59 per cent and 0.36 per cent returns by Nifty 50 and Sensex respectively.

In the last one year, HAL has given 204.44 per cent returns to investors as against 21.77 per cent and 18.15 per cent returns by Nifty 50 and Sensex respectively. HAL is engaged in the design, development, manufacture, repair, overhaul, upgrade and servicing of a wide range of products including, aircraft, helicopters, aero-engines, avionics, accessories and aerospace structures.

Also Read: Govt to buy 34 advanced light choppers from Hindustan Aeronautics for 8,073 crore

Brokerage maintains ‘hold’ on HAL stock

Domestic brokerage firm Prabhudas Lilladher said HAL witnessed a strong performance in the March quarter led by significant beat on margins. The brokerage has maintained a ‘hold’ on the PSU stock. The surge in EBITDA during the quarter was driven by gross margin expansion, lower employee costs and benefits from the absence of large impairment loss.

The consolidated revenue rose 12 per cent in FY24 with gross margin improving to 64 per cent. The net profit rose 64 per cent in the entire fiscal aided by the healthy operating performance higher other income and lower sector expenses. 

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions

 

 

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ABOUT THE AUTHOR
Nikita Prasad
Nikita covers business news and has been producing news on digital platforms since 2018. She writes on economy, policy, markets, commodities, industry. Her core areas of interests include infrastructure, energy, oil and gas, railways, and transport/mobility. She has worked for business news channels like Moneycontrol, NDTV Profit, and Financial Express in the past. If you have story ideas/pitches/reports or quotes/views to share, reach her at nikita.prasad@htdigital.in.
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Published: 16 May 2024, 02:57 PM IST
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