Covid-19: HAL posts strong yearly profits but warns of pandemic impact

by Jon Grevatt

Hindustan Aeronautics Limited (HAL) – India’s biggest defence company – posted strong revenue and profits in fiscal year (FY) 2019-20. The company added that while Covid-19 has had limited impact on its business, future profit growth is at risk due to related economic constraints in India.

HAL said in filings to the Bombay Stock Exchange on 25 June that its consolidated total income in the year was INR218.15 billion (USD2.88 billion) and net profit was INR28.97 billion. These figures, it said, represented year-on-year increases of 7% and 22% respectively.

Hindustan Aeronautics Limited attributed strong profits in 2019-20 to programmes to produce aircraft including the Tejas Light Combat Aircraft (pictured). (HAL)

Hindustan Aeronautics Limited attributed strong profits in 2019-20 to programmes to produce aircraft including the Tejas Light Combat Aircraft (pictured). (HAL)

HAL also said that it ended FY 2019-20 with an order book of INR529.65 billion, a 9% decline on the value for last year.

HAL attributed its robust income and profits to major production programmes including the Dhruv Advanced Light Helicopter (ALH) and Tejas Light Combat Aircraft (LCA). The company said it also anticipates new orders for 83 LCAs and 15 LCHs.

In terms of manufacturing – from which 40% of HAL’s turnover was derived in FY2019-20 – the company said it produced 31 new fixed- and rotary-wing aircraft in the year and 117 new aero-engines. The company also overhauled 199 aircraft and 490 aero-engines.

Looking forward, HAL said it is in a strong position to expand. This outlook, it said, is linked to several programmes that are transitioning from development to production. These programmes include the Light Combat Helicopter (LCH), Light Utility Helicopter (LUH), and the HTT-40 basic trainer aircraft.

HAL also said that it expects its share of the domestic aircraft/helicopter repair and overhaul market to continue to expand. In FY 2019-20 repairs and overhauls accounted for 55% of turnover.

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Hindustan Aeronautics Limited (HAL) – India’s biggest defence company – posted strong revenue and pr...

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