Hindustan Aeronautics sees record Rs 24K-crore revenue in FY22

Income likely to continue flowing in from helicopters and Tejas light fighter

Public sector aeronautics giant Hindustan Aeronautics (HAL) said on Friday that it has recorded its highest ever revenue of over Rs 24,000 crore (provisional and unaudited) in financial year 2021-22 (FY22).
 

A HAL release announced that this amounted to a 6 per cent revenue growth over the turnover of the previous year, which stood at Rs 22,755 crore.
 

Driving HAL’s record revenue was the production of 44 new helicopters/aircraft, 84 new engines, and the overhauling of 203 aircraft/helicopters and 478 engines.
 

HAL’s income has grown steadily from Rs 19,700 crore in FY19 to surpass the Rs 20,000 crore mark in FY20.
 

“Despite the challenges of the second wave of Covid-19 during the first quarter of the year and the consequent production loss, the company could meet the targeted revenue growth with improved performance during the balance period of the year,” said R Madhavan, HAL’s chairman and managing director.
 

HAL said the second wave of Covid-19 had compelled it to declare a phased lockdown at various divisions in April and May 2021. Employees had put in additional hours in June and July 2021 to compensate for the loss of man hours due to the lockdown.
 

Based on the improved financial performance and cash flow position, credit rating agencies CARE Ratings and ICRA had upgraded the company’s credit rating from AA+ Stable to AAA/Stable during the financial year.     
 

On Wednesday, the Union Cabinet cleared the production by HAL of 15 Light Combat Helicopters (LCH) – 10 for the Indian Air Force (IAF) and five for the army – at a cost of Rs 3,887 crore, or Rs 260 crore per helicopter. The contract will also include the production of infrastructure worth Rs 377 crore.
 

After delivering the preliminary order for 15 helicopters, the IAF and the army have jointly projected a requirement for 162 LCHs — 65 for the IAF and 97 for the army. Even without any price escalation, this will provide HAL with an income stream of over Rs 42,120 crore.
 

However, HAL’s biggest assured income stream in the decade ahead is likely to come from the manufacture of the Tejas light combat aircraft (LCA). In March 2020, the Ministry of Defence (MoD) cleared a Rs 46,898-crore order for 83 Tejas Mark-1A fighters, the delivery of which is slated to begin within three years of contract signature.
 

Until production of the Tejas Mark-1A begins, HAL will generate income from an ongoing contract to build 20 Tejas Mark 1 fighters in its final operational certification (FOC) configuration.
 

Considering the improved financial performance during the financial year, HAL has finalised an interim dividend of Rs 40 per share, representing 400 per cent on the face value of Rs 10 per share during FY22.