HAL shares rise 3% on securing deal with Guyana for commuter aircraft supply

Shares of Hindustan Aeronautics Ltd (HAL) surged nearly 3% to hit a high of ₹3,260.75 apiece on the NSE in early trade on Tuesday after the state-owned aerospace and defence company announced signing a pact with the Government of Guyana for supply of two commuter aircraft.

Under the agreement, HAL will supply two Hindustan-228 commuter aircraft along with a manufacturer recommended list of spares, ground handling equipment and ground support equipment. The value of the contract is ₹194 crore, the company said in an exchange filing.

Last week, the PSU defence company secured a ₹2,890-crore order from the Indian government for the mid-life upgrade (MLU) of 25 Dornier aircraft, along with associated equipment for the Indian Navy.

The MLU for the Dornier Aircraft comprises an upgrade to incorporate state-of-the-art avionics systems and primary role sensors. This upgrade would significantly enhance the operational capability of the Dornier aircraft of the Indian Navy to perform primary roles in maritime surveillance, coastal surveillance, electronic intelligence, and the development of maritime domain awareness.

In its quarterly results for Q3FY24, Hindustan Aeronautics posted a 9% jump in profit due to aircraft demand from the defence sector and inventory-related gains. Its consolidated net profit stood at ₹1,261 crore for the third quarter of the ongoing financial year.

The company's revenue grew 7% to ₹6,061 crore in the said three months. Last year, the PSU giant reported ₹255 crore in expenses to account for its stock of finished and unfinished goods.

At 11:07 am, HAL shares were trading at ₹3,274.95 apiece, up 3.28% on the NSE.