HAL Q1 Results: PAT surges 76.5% YoY, but numbers fall short of expectations

Hindustan Aeronautics (HAL) on Wednesday, August 14, reported a 76.5% rise in its consolidated net profit for the quarter ended June 30, 2024 (Q1 FY25) at ₹1,437.2 crore as against ₹814.2 crore logged in the year ago period.

Other income came in at ₹736.5 crore as compared to ₹409.9 crore in the corresponding quarter of the previous fiscal.

The defence company's revenue increased by 11% year-on-year (YoY) to ₹4,347.5 crore from ₹3,915.3 crore reported in the June 2023 quarter.

EBITDA, or earnings before interest, taxes, depreciation, and amortisation, surged by 13% to ₹990.6 crore as against ₹876.8 crore seen during the same period last year. Its margins stood at 22.8%, as against 22.4% in the year-ago period.

As per news reports, HAL's earnings fell short of market expectations.

At 3:02 pm, shares of the company were trading 0.41% lower at ₹4,679 apiece on the BSE. The stock, which has been a multibagger in the past 18–24 months, has slipped over 15% in the past 30 days.

The American aerospace giant, as per reports, was contracted to supply 99 F404-IN20 engines for the Tejas Mk1A fighter aircraft in 2021, with deliveries scheduled to commence in late August 2023. However, recent developments indicate a substantial shortfall in the promised supply.

Instead of the anticipated 16 engines, GE is set to deliver only two F404-IN20 engines in September. This represents a shortfall of nearly 14 engines for the year, casting a shadow over the production timeline of the Tejas fighter.