HAL hits 52-week high after increasing LCA IOC contract value to ₹5,078 crore

Shares of Hindustan Aeronautics Limited (HAL) gained more than 3% to a 52-week high of ₹3,334 apiece on NSE on Thursday after the company announced an amendment to its Light Combat Aircraft IOC contract with revised contract value of ₹5,078 crore.

Hindustan Aeronautics shares have consistently reached new 52-week highs this month, achieving this feat four times on March 2, 4, and 5.

The defence PSU, in an exchange filing on Wednesday, said the value of the LAC IOC contract has been "revised from ₹2,700.87 crore to ₹5,077.95 crore".

The contract pertains to development of Tejas light combat aircraft. The Tejas combat jet has been designed and developed by the Aeronautical Development Agency (ADA) in collaboration with Aircraft Research and Design Centre (ARDC) of Hindustan Aeronautics Limited (HAL).

Hindustan Aeronautics' customers include the Indian Army, Navy and Air Force, along with other reputed aerospace corporations.

For Q3FY24, Hindustan Aeronautics Ltd (HAL) reported a 9.2% year-on-year rise in its consolidated net profit at ₹1,261.4 crore.

The Bengaluru-headquartered PSU's revenue increased to ₹6,061.3 crore in the third quarter of the ongoing financial year, up from ₹5,666.5 crore in the corresponding period a year ago.

HAL's margins, a key measure of profitability, increased by 630 basis points (bps) year-on-year to 23.7% for the third quarter ended on December 31, 2023.

The defence PSU's board of directors also declared its first interim dividend of ₹22 per fully paid-up equity share with a face value of ₹5 for the financial year 2023-24.

Shares of HAL were trading 2.89% higher at ₹3,319.65 apiece on NSE at 3:15 pm.