As the June 2024 quarter results season heads to its end, Hindustan Aeronautics Ltd is scheduled to announce its earnings for April-June 2024 period later on Wednesday, August 14. The company board will meet later today to consider the audited financial results of the company for the quarter ended June 30, 2024.
Analysts tracking the counter are expecting the company to report a sharp fall in revenue, ebitda and profit after tax (PAT) on quarter-on-quarter (QoQ) basis, while metrics may rise on yearly-comparison (YoY). Margins are seen to be improving YoY but a sharp fall on a sequential basis is on the cards. One should note that Q1 is a weak year for the company.
Nirmal Bang Institutional Equities expect HAL's revenue to come in at Rs 4,678.8 crore, up 20 per cent YoY but crashing 68 per cent sequentially, while net profit it seen at Rs 1,124.8 crore, up 38 per cent YoY but falling 74 per cent QoQ. Ebitda is seen at Rs 1,576 crore, surging 80 per cent YoY but a QoQ fall of 73 per cent, with Ebitda margins coming in at 33.7 per cent.
"The order backlog currently stands at Rs 94,000 crore.The company expects significant revenue growth in the next few years, driven by increased execution of big contracts. In the next 1.5-3 years, HAL will likely get Rs 1.6-1.7 lakh crore in contracts. It will receive several large-scale contracts over the next 3-5 years. MRO contract execution is projected to remain strong, with constant order inflows and shorter execution durations," said Nirmal Bang, which has a 'sell' rating on the stock
Sharekhan pegs HAL's revenue at Rs 4886 crore, up 25 per cent YoY but down 67 per cent on a quarterly basis. Ebitda margins may contract sharply at 20.7 per cent, while net profit is seen crashing 80 per cent on sequential basis to Rs 917 crore for the first quarter of the current fiscal.
"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," said Sharekhan, adding that 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."
Elara Capital expects HAL to report a revenue of Rs 4,224 crore, rising 7.9 per cent YoY but falling 70.3 per cent on a sequential basis. Ebitda is seen at Rs 1,165.2 crore, increasing 8.9 per cent YoY but crashing 73.1 per cent QoQ. Net profit is seen at Rs 1,082.6 crore, falling 60 per cent QoQ but up 7.5 per cent YoY.
Phillip Capital is penciling revenue to come in at Rs 4,424.3 crore, up 13 per cent YoY but down 69 per cent on a sequential basis. Ebitda is seen at Rs 955.7 crore, crashing 82 per cent QoQ and up 9 per cent YoY, with Ebitda margins contracting sharply to 21.6 per cent. PAT is seen at Rs 806 crore, flat YoY but down 81 per cent QoQ.
"We expect its sales to grow by 13 per cent YoY in Q1FY25F, driven by strong execution in the services (ROH) segment while deliveries of some manufacturing orders could remain muted," said the brokerage firm.
Prabhudas Lilladher, which has the lower estimates for the quarter, is expecting HAL to see revenue at Rs 4,346 crore, while Ebitda is seen at Rs 973.5 crore and net profit is likely to come in at Rs 906.2 crore. Revenue, ebitda and profit may increase in sub-11 per cent range, said the brokerage.
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