Hindustan Aeronautics Ltd (HAL) on Wednesday recorded a 76.50 per cent surge in its June 2024 quarter consolidated net profit (Q1 FY25). The figure came at Rs 1,437.16 crore in Q1 FY25 as against Rs 814.24 crore in the year-ago period.
The defence PSU's revenue from operations climbed 11.04 per cent to Rs 4,347.50 crore compared to Rs 3,915.35 crore in the corresponding period last year. However, profit slipped by 66.65 per cent on a sequential basis.
During the quarter under review, total income moved 17.54 per cent higher to Rs 5,083.85 crore from Rs 4,325.29 crore in Q1 FY24. Quarter-on quarter (QoQ), the company also recorded a sharp drop in revenue and total income.
On the other hand, HAL's total expense climbed 8.22 per cent to Rs 3,506.16 crore in Q1 FY25 over Rs 3,239.92 crore in the same period last year.
"Q1 is the weakest quarter in revenue for Hindustan Aeronautics and margins with majority of the sales coming in Q4FY25. With a strong order book and pipeline, it has a healthy growth visibility," Sharekhan stated ahead of Q1 results.
"Most companies have robust order book and therefore execution is expected to scale up consistently. Order intake was weak in the quarter due to elections," the domestic brokerage added.
The state-owned is one of the several firms which have benefited from increased government capital expenditure as well as a push to localise defence manufacturing. The company manufactures military aircraft, helicopters and engines, and also offers maintenance and repair services. Maintenance is HAL's biggest business, accounting for 72 per cent of revenue in the previous financial year 2023-24 (FY24).
HAL shares briefly turned positive after the quarterly results were declared. Last checked, the stock was up 0.14 per cent at Rs 4,704.95. Separately, the counter will trade ex-dividend next week on August 21. The company has announced a final dividend of Rs 13 per share.