The Defence Public Sector Undertaking (DPSU) Hindustan Aeronautics Ltd (HAL) has reported that it has witnessed decline in profit in 10 quarters. The reason attributed to is because of higher input costs and tax expenses.
The Indian state-owned aerospace and defence company’s consolidated net profit stood at Rs 2,831 Crores ($342.20 Million) in the fourth quarter of FY23, down by nearly 9% from Rs 3,105 Crores witnessed in the same quarter last year.
While revenue from operations increase by almost 8% to 12,494 Crores for the quarter ended March. The same stood at Rs 11,558 crore in the corresponding quarter of last year.
Further, HAL reported in its exchange filing that there was also almost 9.2% jump in expenses, led by a nearly 39% increase in cost of materials; thereby reaching Rs 10,360 Crores as against Rs 9,486 Crores a year ago.
Also, to be noted that on a sequential basis, profit more than doubled from Rs 1,155 crore reported in the preceding December quarter. Revenue, too, witnessed an increase by a massive 120% quarter-on-quarter (QoQ).
The company has reported an EBITDA (earnings before interest, tax, depreciation and amortisation) of Rs 3,242 crore during the January-March period, which is higher by 29%, compared with Rs 2,495 crore in the year-ago period.
Margins during the March quarter improved to 25.9% as against 21.6% a year ago.
For the full year ended March 2023, HAL’s consolidated net profit increased 14% to Rs 5,828 crore as compared to Rs 5,080 crore posted in FY22.
About HAL
Hindustan Aeronautics Limited (HAL) is an Indian public sector aerospace and defence company, headquartered in Bangalore.
Established on 23 December 1940, HAL is one of the oldest and largest aerospace and defence manufacturers in the world, and is owned by the Governmet of India.
The company develops, designs, manufactures, fabricates and supplies aircraft, helicopters, avionics, and communications equipment for military and civil markets.
It also provides repair, maintenance, and support services for aircraft. HAL offers accessories for aircraft, helicopters and aero engines, aerospace equipment, advanced communication, and navigation equipment.
Further, the DPSU serves the three Indian Armed Forces, Defence Research & Development Organization (DRDO), Indian Coast Guard, Indian Space Research Organization (ISRO), Mauritius Police Force, Boeing, and Airbus Industries, to name a few.
The company operates through a network of production facilities, and research and design centers in India.
